Irrespective of whether you want to flash that credit card to impress your companion or for its benefits, make sure that you have chosen it for rational reasons only…
Did you know that as per the research report ‘Indian Payment Card Market Forecast to 2012’, the number of credit cards issued by banks is expected to grow at a CAGR (Compounded Annual Growth Rate) of nearly 13.2 per cent during FY 2011- FY 2013? One of the reasons behind this high growth rate is the flexibility of paying for an expensive product in easy installments, one of the basic credit card benefits.
With the increasing popularity of credit cards, each lender is offering multiple credit cards. Multiply this number with the number of lenders, and the total number of credit cards on offer would be mindboggling. So, how do you choose one or a few credit cards from the many on offer? Make sure that you do not get carried away by smooth-talking salesmen or salesgirls. Choose your credit card taking into account not only the cost of the card and associated fees but your unique requirements as well. Here are some offers on cards:
● Credit cards which offer shopping benefits
These cards entail special benefits to shoppers. The benefits may be in the form of:
o Greater reward points on shopping spends
o Discounts/cash back offers on shopping.
Some cards may even offer higher reward points on shopping during weekends or festive seasons. Therefore, if you are a regular shopper, then using a credit card which offers special benefits on your shopping expenses could be a wise choice.
● Co-branded credit cards
Are you a frequent flyer or a regular shopper at a particular outlet? In that case you could consider the option of using a co-branded credit card. A co-branded credit card is issued in association with a particular merchant. It offers benefits on spends incurred at the merchant’s outlet. For example, a co-branded credit card issued in association with a travel agency could offer cash-back or special discounts on bookings made through that agency.
● Credit cards with cash-back offers
These cards offer cash-back on credit card spends (subject to a certain threshold). The cash-back benefits are offered on spends made under categories such as shopping, travel and utility bill payments. These cards are suitable for those who regularly incur expenses under the relevant categories. The cash-back amount is often adjusted against future purchases made by the credit cardholder.
● Secured credit cards
A secured credit card is issued against a fixed deposit. Here, as a cardholder, you are required to open a fixed deposit with the bank. The credit limit under such cards is often set as a percentage of the fixed deposit amount. These cards are suitable, if you want to ensure that you can easily afford the credit card spends, without worrying about the repayment.
So, remember, you will look impressive irrespective of which card you flash. Shop around for cards a little before you choose. And make sure that the ones which you place in your wallet make your spending experience more rewarding.
Check how you can customise your card with Axis bank.