How to compare credit cards to select the best one?

A popular mode of payment, credit cards can be defined as plastic cards that are meant to replace cash. Along with debit cards, these cards are issued by banks. The way in which these cards differ from each other is, in the case of debit cards, a certain sum is deducted from your bank account, and, with credit cards, money isn’t deducted from your account. Instead, you are expected to pay a bill at the end of the month.

So, how does one choose a credit card that is most suitable to them? If this is a question that you are wondering about, keep the following tips in mind while evaluating credit cards:

· Look up the annual percentage rate (APR)

The term annual percentage rate (APR) can be defined as the interest you are required to pay for the payments made through your credit card. Simply put, APR is a fee that you need to pay the issuing party of your credit card for the extension. Comparing the APR charged on different cards will help you to choose the most affordable and suitable one. Apart from the APR, it is also imperative on your part to compare other credit card details such as fees, reward programmes, and charges.

· Compare different rates of interest on different cards

Usually, the rates of interest offered to you by the bank on your credit card are dependent on a wide range of factors such as your relationship with the bank or more importantly, your credit score. But that does not mean that while comparing the different credit cards, you should not do anything. In fact, it is very prudent on your part to carry out research on which credit card offers an attractive interest rate.

· Compare the rewards offered by the different cards

Before signing up for a credit card, it is very important for you to carefully assess your lifestyle and then decide whether you want to go for a card that is known for offers such as cashback, air miles, or rewards points. Different types of reward programmes are known for offering different perks. Carefully go through each of these rewards and go for the one that suits your lifestyle.

Different types of credit cards you can opt for

A lot of banks nowadays are known for not just offering one credit card, but also different types of credit cards. Each of these different kinds of credit cards is known for catering to the different needs of different customers. For instance, IDFC FIRST bank offers credit cards such as FIRST Millennia, First Select, First Wealth, First Classic, and First WOW! After comparing credit cards offered by the banks, you can go ahead and select a suitable credit card.

A credit card has the capacity of helping you to improve your credit score. A credit card will help you to improve your credit score only if you were to use the card wisely and pay your credit card bill before the due date. Apart from that while using these cards, it is also possible for you to enjoy great cash-back offers and discounts.

The best part about choosing a credit card is that there are numerous options available. You can carry out research about the various features offered by different cards and choose the one that suits you best.