Consider These Five Crucial Factors Before Opting For a Credit Card


Try and limit the number of cards you use, so as to avoid late payments and penalties

We receive calls as well as text messages from our banks daily. Among them are also the offers for credit cards. And while many might tempt you to straight away opt for them, it’s always healthy to consider various aspects, including the fee and interest charges etc, before finally picking one. While an individual must take into account the credibility of the card company, it is also equally important to assess your financial situation and be sure that you are capable of paying off the card debts. Here are some crucial components of buying a credit card:

Interest rate:

A lot of credit card companies use the zero per cent interest rate policy to attract customers. However, when a cardholder fails to settle his/her debts within the promotional period, the companies levy high interest rates, which may sometimes go up to 25 per cent. Also, experts advise potential credit card subscribers to look around and opt for an option with the lowest interest rate to save money in the long run. 

Annual fee:

The rising number of credit card companies has led to one advantage for subscribers. Several companies offer their credit cards without any annual charge. Pick such a card so that even if you don’t use it throughout the year or use it excessively, there’s no fixed charge asked of you. If you have had an account with a bank for a long time, and if you maintain a certain balance, chances are the same company will offer you a credit card without any annual charge. 


Carefully read and even ask a company executive to explain to you the rewards for paying off your debts on time or making use of the card at certain shopping stores as well as e-commerce platforms. Cashback cards, in general, are considered to be the best as far as the deals are concerned, for they offer you back a small percentage of the money spent by you.


This forms an important part of buying a credit card. Not only should you invest your time in understanding the penalties but also ask the company about the fee it charges if you fail to pay off your debt on time. Some companies even raise the interest rate for even one late payment. Enquire about these things before picking a card. 

Number of cards:

Last, but not least, try and limit the number of cards you use, to avoid late payments and penalties etc. More than one card may lead to the added pressure of debts every month. Also, ask yourself if you really need more than a card or two. Have one credit card and pay off the debt entirely at the end of the month. If you are choosing a  credit card for the first time, opt for the one with maximum rewards, no annual fee, and low-interest charges. 

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