credit cards

Benefits Of Credit Cards

7 mins read

Are you looking to get yourself a new credit card? The credit card application process today is simpler than ever before. At the same time, the variety of cards with their benefits and reward points can leave. You confused about which card would be most suited to your personal needs. 

Let us help you decide which credit card apply for and the key points you can use to compare the offerings on hand. Once you have select the right card, the application process is usually quickly approve and process – provide the CIBIL authorities assure your credibility. Read on to find out more.

The Different Types Of Credit Cards Available In India

You can apply for credit cards from one of the many types of reward points and benefits offered on the market. Some categories include fuel credit cards, cashback credit cards, travel benefits credit cards, lifestyle credit cards, shopping credit cards, and rewards credit cards. The names of these categories are self-explanatory. Depending on your lifestyle and usage, you can choose one of the cards that best suits you.

Some people use multiple credit cards for various purposes, and there is no harm in doing so if you can keep track of every card’s usage and make timely payments. If you do not prefer keeping tabs on multiple payments, go for a single card that can accommodate most of your regular expenses under one umbrella. Also, you would save on the annual usage fees of multiple cards if you apply for one or two cards.

Sign-Up Bonuses

Sign-up bonuses are a tried and tested method that credit card companies use to offer benefits to their credit card customers. A ‘welcome bonus’, more commonly referred to, could include a waiver of processing fees, cashback on spending a certain amount in a given time frame, benefits of fueling your car using the card, dining out, and airfares…the list goes on. 

However, if you need to spend more than you usually do to avail of the welcome bonus, it defeats the purpose of a ‘bonus’. For example, if your credit card offers you Rs. 2,000 off on flight tickets after a minimum card usage of Rs. 30,000 in 3 months, but your monthly use of cards requires no more than 15 or 18 thousand…, it just doesn’t justify the incentive.

So, make a credit card application based on practical rewards and bonuses for your expenses. Usually, a quick call to the credit card customer care number would be enough to gauge the usability and practicality of the offered incentives.

Annual Fees

Some credit cards have an annual fee, while others are offer a ‘zero annual fee’ as an application incentive. Usually, cards that charge users an annual fee come with more perks and incentives than the ‘free’ cards. Conversely, it would be no good if those perks did not apply to the planned usage. So, one of the critical decisions when applying for a  new credit card would be to distinguish between the annual fees, free or flexible credit cards whose limits and perks can be change with a quick call to the customer care number.

Remember, the bank representatives and credit card agents will always try and sell you the highest-possible limit credit card applicable to your income. If you do NOT need a high limit, going for a less-than-premium (read platinum) credit card might give you considerable savings on the annual credit card fees.

APR Percentage

A credit APR percentage is the annual fee you will be paying for the amount used on the card. It is more commonly known as the interest rate. This should not be a deciding factor if you regularly pay back your usage within the ‘interest-free’ period, which is usually 30 days from the billing cycle of every credit card, with sometimes a ‘grace’ period of 15 days. On the other hand, if you fall back on payments due to unforeseen circumstances, a high interest rate could result in your credit debt growing exponentially!

Some cards offer a 0% APR FOR A STIPULATE PERIOD within which no interest is charge. It could vary from 90 days to 180 days. While this may sound like a great offer, losing track of the end date after a few weeks is easy. The result could be the presentation of an unpayable bill amount, which could come as a sudden rude awakening after 3 or 4 months of unplanned spending, keeping the ‘0%’ in mind.

Late Payment Penalty

Another factor you need to keep in mind is the late payment fee charged by the card company. Should your payments get delayed by a few weeks, what is the penalty you’d have to pay? While this may not be a deciding factor for salaried professionals who are sure of their salary dates, business owners could be affected by late payments by their clients.


There are dozens of credit cards available to choose from, each having its own pros and cons to help you decide on the right service for YOU. When in doubt, get clarifications with a simple conversation with the credit card customer care number before you make your card application.

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