Credit card usage increased by 30% according to statistics as per August 2019. It reflects that more than ever, individuals are making transactions with credit cards. Credit card is an instant payment tool that is more convenient to carry than liquid money. They work as a type of personal loan that one can pay back at the start of every month. Consequently, financial institutions offer different types of credit cards to suit distinct spending habits of individuals.
One should opt for a credit card that complements his/her lifestyle. For instance, travel lovers can go for credit cards that offer reward points on travel-related expenses such as plane tickets, hotel bookings, etc.
Even so, they should compare between different types of credit cards before deciding on one. He or she should check if the credit card for travel offers the following features.
Features of a credit card
- Attractive reward points – One of the features that one should consider while choosing a suitable credit card are reward points. One of the most significant factors behind using a credit card is that individuals can avail substantial reward points on reaching certain milestones.
Travel enthusiasts should go for travel credit cards that offer reward points on travel-related expenses such as hotel booking, international purchases, flight, or railway ticket booking.
If you are someone who loves to go on road trips with your vehicle, you can also consider credit cards that offer fuel surcharge waiver when you refuel across any pumps.
One can even make down payments with the reward points they have collected on transactions with their credit card.
- Affordable interest rate – Credit cards come with a grace period of around or above 20 days. If you make the payment within this period, you will not be charged any interest by the credit card company. Nonetheless, if an individual wants to pay later or makes a late payment, interest will be charged as per the amount outstanding.
In consequence, one should opt for a credit card from a financial institution or NBFC, which has an affordable interest rate or a suitable repayment option.
Some credit cards like the Bajaj Finserv RBL Bank SuperCard allow you to withdraw cash from ATM charging an interest for up to 50 days.
- Security features – Credit cards are also used to make transactions online. Such transactions are susceptible to fraudulent activities. It is why you should even know about the different types of credit card frauds and how you can avoid them. One way how you can prevent fraud is that when you are comparing different types of credit card, you should select the credit cards that come with in-built security features.
- Pre-approved offers – Some NBFCs like Bajaj Finserv provide pre-approved offers that make the process of availing credit cards more efficient. Apart from credit cards, these offers can also be available on personal loans, business loans, and other financial products. One can check for pre-approved offers by providing some necessary information, such as name and contact number online.
- Hassle-free application process – Avail credit card from an issuer where you can quickly fulfil the eligibility criteria and require minimum documentation. Nevertheless, you should know about the important things before applying for a credit card.
Subsequently, one should know how to use their credit card properly to utilise the benefits properly. You can adopt some necessary steps which include the following –
- Paying your credit card bills on time.
- Making transactions of a substantial amount at the beginning of the billing cycle.
- Monitoring your purchase and checking credit card statement.
Consequently, a travel enthusiast should go through different types of credit cards to choose the right credit card for themselves that best compliments their lifestyle. They should note that it is essential to use their credit card wisely not only to avoid credit card debt but also to have a favourable impact on their credit score.