6 Tips To Get The Best Credit Card

Posted Date: Sat Jul 2016

Credit Cards are a very versatile tool when it comes to financial transactions. It enables you to make instant purchases and then pay later at your ease. We have listed all the pros and cons of credit cards in a separate article which you can check out here(hyperlink pros and cons of credit cards article here). However in this write-up we will guide our readers on how to choose the best credit card. Keep in mind that there are tons of credit cards offered by various banks in Pakistan with no two cards being the same hence this article will point out the features you should look into while going for a credit card along with some specific features that might cater to your usage/spending scenarios as only these factors would command what type of credit card suits you best.

Relevance:
When choosing a credit card, first consider your needs and the places or services on which you spend the most of your money or often. There are cards specific to those who travel a lot, spend a lot on fuel or shop a lot. Each of these types come  with discounts that are respective to specifically those services. Hence it’s always a good idea to first analyse your spending and needs and then choose a relevant card that suits your lifestyle.

Discounts:
This is just the biggest benefit of paying through credit cards hence banks have deal with various service providers that give you a specific percentage  of discount on your spending. Hence the cards that offer the biggest amounts of discounts or have a large number of partnerships with different kinds of service providers are the right pick when opting for a new credit card.

Perks:
You should also lookout for additional perks or benefits that your credit card provider is offering you. For example  some cards waive off or have no joining, annual or card reissuance fee. Not just that, with credit cards you can get cashbacks, discounts and different vouchers. Another addition to such perks is that you get free access to exclusive places such as golf courses, VIP lounges at airport, complimentary valet parking etc. at no charge whatsoever. The list of perks goes on and thus it’s a major thing to look forward to Getting a credit card from an established bank having a strong foothold in your country and one that’s an international bank because such a bank usually gets you the best perks within your country and abroad as well. It goes without saying though that aside from the discounts, lifestyle perks are usually confined to premium level of credit cards usually known as platinum, titanium or black card.

Eligibility Criteria:
While searching around for a new credit card, make sure you choose one that you’re most likely to be eligible for. Credit cards that are higher up in the chain such as Gold, Platinum, Titanium and Black cards are usually for people with established businesses, large credit limit needs, excellent credit rating or high salaries and hence you may not be eligible for them or they might not be suitable according to your spending and lifestyle. Hence only opt for a card that is in accordance to your salary, credit limit & rating and way of life. Because the more premium your credit card, the more charges and fees it will come with. So don’t always fall for excessively opulent offers and perks if they are unsuitable for your lifestyle.

Remote Banking:
Once you get the credit card you’ll be making transactions and you need to keep a track of each one. It’s in the best intrest of you to choose one that gives you multiple accessibility options to your transaction history and outstanding balance. Some banks offer SMS based information, for others you have to call your bank’s helpline and some banks offer you seamless online access to your account balance and ourstanding dues. Hence it’s always best to get a credit card that offers maximum accessibility to your account. After all no one likes to send SMS all the time or make calls and wait for operators instead of managing their accounts at their own ease.

Bill Payment:
Once you start using your credit card to make purchases and transactions, the other thing to do is to pay your outstanding bills. If you fail to pay your bills within the given duration then you are subject to hefty late payment fines and interest rates and thus things can get pretty out of hand. There are different ways to clear your outstanding dues such as bank transfer, online payment or cash deposit etc. Hence the more ways of paying your bills the more easier and flexible it gets. Late payment fee interest on late payment.