ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

How to choose the best Credit card? How to choose the best credit card in India? Top 10 Credit cards

Updated on March 14, 2016

How to choose the best Credit card?

Credit cards have become a necessity today. There are hundreds of credit cards with varied features and offers for customers. Hence it’s important to find out which card suits all your credit needs. Quite often, people end up choosing the wrong card after being attracted by a particular initial feature or offer. Later they will find that the card is not worth at all. As a general guideline, compare the features of different cards and choose the one which suit your needs. Also, read the Terms & conditions and check all the related fees and charges like interest rates, service charges, cash advance fees, Cash interest rate, etc. Hidden charges may prove to be big headache later.

If you are someone spending heavy on your card and carrying a large balance month after month, go for a low interest credit card. Such cards offer a low introductory APR (Annual percentage rate) that gradually increases after a certain period of time. Most cards will charge a higher interest rate for cash withdrawals/cash transactions than retail purchases. The difference could be as high as 5%-8%. Cash transactions may also carry other charges like Cash advance fees. If you are using your credit card for withdrawing cash regularly, you must be aware of these charges.

Cash Back Cards: If you settle off the entire balance on your credit card each month, then go for a Cashback card. Such cards offer you cash rewards (up to 5%) for making purchases using your card. However, Cash back card may carry a higher APR rate than other cards. So, if you don’t pay off your full balance each month, the higher interest rate will neutralize the benefit of the Cashback. Citibank credit cards offer Cash back up to 5%

Late payment and other Penalties: Credit cards will levy Late payment charges if the minimum payment due is not made within the due date. Similarly, you will be levied overlimit fees if you exceed the Credit limit. In India, credit card companies charge around Rs 250 as pate payment fees. Remember that default on payments will be reported by the company/bank to the credit reference agencies which may affect your credit status and borrowing ability in future. However, some cards may charge exorbitant penalties. Hence, read the terms and conditions with respect to penalty charges carefully

Balance Transfer Cards: Some offer Balance Transfer offers. Under Balance Transfer, if you are already paying high interest on a credit card balance, you could transfer it to a low interest rate or even 0% introductory APR card. For Example, if you have a balance of Rs 50,000 on a credit card with an interest rate of 24% p a, you could transfer the entire balance of Rs 50,000 to your new card with an introductory APR of 0% for say, 6 months. Here you can save the interest that you pay on the outstanding amount of Rs 50,000 for 6 months, which is Rs 6000. However, a fee may be charged for Balance transfers.

Travel Cards: Americans are addicted to earning rewards on their credit cards. Travel Rewards cards offer rewards for customers who travel or fly frequently. They typically offer Air Miles or Hotel reward points which you can redeem while booking your flight or Hotel ticket. For example, a customer earns 1 Air mile for every $20 he/she spends on her card. Once he/she accrues 500 or 1000 miles, she can use the same to book flight tickets to a desired destination. But, such cards may carry an annual service fee. American Express, Citibank Premium Miles, Jet Airways platinum etc are examples of Travel Rewards cards

Fuel/oil reward Cards: Fuel Rewards cards offer points for making purchases which you can redeem against fuel/oil filling at pumping stations. Some cards offer cash back whenever you use the card for buying fuel at petrol stations. Shell fuel credit card, Citibank oil Titanium, standard chartered super Value Titanium etc are examples of Fuel Rewards cards.

Customer Service: If you are an international traveler, your card must work worldwide without any hassle. Often, cards get blocked due to security reasons for which you need to call the company and get it unblocked. Hence, prompt customer service is highly essential

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)