subject: Know More About The Factors Before Applying For A Credit Card [print this page] Credit card is an effective form of plastic money if used very carefully. Credit cards extend us line of free credit for a certain period of time and that too without any costs. Credit cards can help us great deal in emergencies like medical contingency when we are out of our home town and sudden need of money arises, then we can use credit card there else withdraw money using the credit card also. Further, we can use credit card for shopping and other leisure activities as well. These days with the advent of internet and everything seems to happen online.
Moreover, some free credit cards come up with the benefit of cash backs in the form of direct discounts or discount in the bills. Credit cards are effective when used carefully otherwise they can prove a disaster for you. There are some factors that you should consider and know before applying for a credit card which is described below:
Credit score: Your credit score is maintained by the central credit bureau in India known as CIBIL. Credit score helps you getting loans and debts from the banks. If it is good, banks dont take time in approving your loans while if it is bad, banks and other financial institutions done approve your loan. Credit card also is a part of it. If you will lag in payments to be paid while using credit card, it can further hamper your credit worthiness. So, one should know about this prior to apply credit card online.
Interest rate: Credit card provides you interest free period of 50 days in India. But if you are unable to make payment within this stipulated time, then interest rate charged on the late fees is very high and it may land up you in debts. So, interest rate evaluation is important too.
Upfront and annual fees: Generally, telesales in order to achieve their sales targets do not properly describe the fee structure for the cards. Free credit cards told by them are generally not free. They carry an upfront fees and ongoing annual fees which an individual must check before applying for a credit card.
In order to get the best credit card in India, one can check and compare various cards available and then you should apply credit card online. This saves time and costs. Various insurance aggregators like policbazaar.com helps you to compare various credit cards and costs associated to them and eventually help you in buying the best credit card in India.
