Do not worry, you are at the right place! You will definitely find the card that suits your lifestyle. Whether you want to earn cashbacks or save more with deals and discounts, CreditKaro is the right place to be.
Choosing a credit card can be tricky at times. This plastic card solves the most important problems during a short financial crisis. Be it a vacation, a shopping spree or an emergency, your credit card stands by you. Using a credit card is not as difficult as picking a new credit card for yourself. The purpose of getting a new credit card defines what type of card you actually want. If you are looking to earn some cash back on your daily spends then you are looking for a cashback card, if you are a frequent traveler then you are looking for a travel card and if you love going to the movies then you want a card that offers you reward points on movie bookings. There are shopping cards, travel cards, co-branded cards, fuel cards, and the possibilities are endless.
For every need there is a unique credit card, let us have a look at the 15 best credit cards in India January 2022 in India across all categories and how they compare to each other:
When you are looking for the best credit cards online, you are looking for something that can solve all your problems. Unfortunately, every card is unique and has its own line of features, so there is no one product that fits all. The only way to find the perfect match for yourself is to divide your needs into categories. Every card caters to a different category and to make the most out of your credit cards you need to make sure that you pick the best from each category. Your spending behavior will decide what type of card you actually need. You might not be a shopaholic but you are a frequent flyer so you may not need a cashback & rewards cards as much as a travel credit card. It is especially important to understand the need before actually getting yourself an added responsibility of a credit card.
If you have a habit of spending high amounts on your credit card, it is particularly important that you keep up with the monthly payment dates. If you are missing monthly payments on a continuous basis or keeping your card balance for months at a time, soon you will see yourself falling into a debt trap. The interest rates on these credit cards can range from 30% to 50% annually, therefore taking away from the rewards that you may earn through your spending. This will automatically bring you to square-one and diminish the whole point of having a credit card. So, if you have a habit of using your credit card more often then make sure you do your payments on time to avoid situations like these.
Credit Utilization ratio also known as your Credit utilization rate; is the amount of revolving credit you are presently utilizing divided by the total amount of revolving credit you have. For example- You have INR 10,000 in credit which is available on your credit card and you have used up INR 5,000 during your billing cycle, then your credit utilization ratio stands at 50% as you have used up half of the available limit. The total of credit utilization ratio is calculated after considering all the credit cards you own.
A good credit utilization ratio is determined differently by different credit rating agencies. However, the most commonly recommended total credit utilization ratio is below 30%. For example – Your total credit limit is 1,00,000, your total revolving balance must not exceed INR 30,000. Having a lower credit utilization ratio indicates that you are a responsible borrower and that you have had a good credit history. Check the benefits of credit health report here
Rewards are not as easy to access as you may think. If you are redeeming cashback rewards are quickly awarded making it useful to you because it solves your need for a quick redemption on rewards. However, redeeming rewards on a travel card may take up to a few weeks to receive due to processing time, making it less attractive to those who want fast rewards but remains attractive for frequent flyers who can redeem those reward points for discounts on their next flight.
Many credit cardholders accumulate reward points but fail to redeem them on time. Regardless of the reward points you accumulate, if they are not redeemed on time, the reward schemes expire. Whether you choose to redeem rewards frequently or accumulate and redeem for something big, make sure you use the rewards before they expire.