5 Steps To follow Before Applying for a New Credit Cards in 2022

 

Managing finances in 2022 is a lot easier than it was before. Today, institutions like banks have come up with tools and services that can ease your transactions, make payment easier, and also offer lucrative discounts on a variety of items. A credit cards is a facility that has been around for more than two decades in India and has managed to gain more importance due to the pandemic taking a significant toll on individual finances. Because the average consumer has been affected financially and otherwise, credit cards have offered a way out.

Now you can pay your bills, purchase items, and align your budget and shopping plans better by using credit cards.

A credit card is a simple tool that lets you make your purchases without having to pay cash at the outset, and you can cover the amount at the end of the month – and the billing cycle. 

Besides the ease of shopping, credit cards also give you discounts that you can use to make smart deals. However, you can apply for a credit card easily, it helps you to manage your monthly expenses easily.

As we step into the new year, we highlight five steps you need to follow before you apply for a new credit card.

While credit cards such as the Bajaj Finserv RBL Bank SuperCard offer numerous benefits, it is recommended that you remain prudent and judicious with your approach.

Look into types of credit cards:

Applying for a credit card requires you to go over the different types of credit cards offered by banks and fintech companies. For instance, if you are applying for a credit card for the first time, you can look for a beginner-level credit card.

A low Annual Percentage Rate (APR) credit card can let you make your purchases easily, and should you delay your payment due to any emergencies, you can cover it up without incurring heavy losses.

Consider your monthly income:

Having a low APR credit card should not mean one gets reckless in billing and purchases, for it can translate into mounting charges later on. Therefore, it is important to take your monthly income into consideration and thereon plan your expenses. 

Choose a low credit limit:

Before you start using credit cards, apply for a credit card with a low credit limit that can get you accustomed to the billing process, method, and mechanism. You can, later on, upgrade to credit cards with higher limits once you get the hang of it.

Read the terms and conditions:

Before applying for a credit card, reading the terms and conditions associated with it is an essential task.

It requires you to go over the APR rates, which is the percentage of interest that you will have to pay in case you default on your payments.

A high APR credit card means interest around 30 to 40 percent, and that can prove to be a hurdle for your budget.

However, you can look for opportunities like grace periods offered by the bank, where you can get some relief for a short while.

Such nuances are generally listed in the terms and conditions when you register for a credit card; applying for it needs a necessary reading up.

Know how to balance the credit utilization ratio:

Despite having a high credit limit or a decent history of payments, one must learn how to balance the credit utilization ratio.

Such a ratio can reflect on your credit health, which means that if you are spending more than, say, 30 to 40 percent of your credit limit, your credit score might be significantly lowered.

The reason is that the more you use your credit limit, the higher a risk you pose to your lender.

Apply for the Bajaj Finserv RBL Bank Super Cards

If you’re searching for a multifaceted credit card, the Bajaj Finserv RBL Bank SuperCard is an excellent credit card to consider. This credit card comes with the power of four cards – all rolled into one!

The instant credit card lets you pay utility bills and purchase a variety of household items easily. Furthermore, you can receive a number of advantages and lucrative discounts associated with your credit card.

With the Bajaj Finserv co-brand credit card, you can convert your purchases of 2,500 INR and upwards into

easy EMIs to be paid in comfortable, bite-sized installments over a tenor that you choose.

For up to 50 days, you can also withdraw cash without having to pay any interest as well. Want to purchase items with deep discounts? With the SuperCard, you also get 5 percent cashback rewards!

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