A credit card comes in handy for various transactions anytime and anywhere, whether you’re shopping online or visiting a mall. If you need cash, you can use the card to withdraw from your closest ATM. If you need to make an urgent payment, like for a medical emergency, the card is very useful there too. It is also convenient to carry. Additionally, if you pay off your dues on time, you can enjoy all the benefits without paying any interest fees.
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So, here are 5 important features that a good credit card has.
#1 – Lowest Interest Rate
Interest charges are levied by the issuer if you are unable to pay the dues by the due date. It is good to be aware of this date and plan your financials such that you have the money when the payment becomes due. However, there may be times when this is not possible. In such circumstances, it helps to have a card with the lowest interest rate.
A credit card with the lowest interest rate ensures that:
- The charges are much less when you are unable to repay the outstanding amount.
- You can make the complete payment more easily.
- You can clear your dues faster and maintain a good credit score.
There are some things you can do to lower the charges:
- Try to keep your credit card spending within your budget.
- Pay as and when you have money, instead of waiting for a day on which you have the complete outstanding money ready with you.
#2 – No Annual Maintenance Fees
Some issuers charge an annual maintenance fee to keep your credit card account open and continue using the benefits. A good credit card comes with zero annual fees. Even better, a lifetime free credit card never charges annual fees for your life!
#3 – Zero Over-the-Limit Fees
When you use your credit card for transactions exceeding the assigned credit limit, an over-the-limit fee is charged. Luckily, some credit cards don’t charge this fee at all. This can help when you need to buy certain things, like furniture for the house or some home appliance or pay for some repairs before selling a home.
#4 – Reward Points
Always check the reward points offered when comparing credit cards. This means, every time you spend money, you earn some points. You can redeem these when you need to buy something.
The best credit card boosts your experience of earning rewards with the following offers:
- Up to 10X reward points or credit points.
- Credit points aren’t capped. So, they’re limitless!
- No redemption fees on using rewards.
- Credit points don’t expire. So, you won’t lose them!
- More reward points on online credit card transactions than offline.
#5 – Offers at Multiple Partner Merchants
Some credit cards have tie-ups with many leading merchants and popular brands. These cards offer time-to-time discounts on:
- Health and wellness services
- Travel
- Shopping
- Education and upskilling
- Dining
- Other services
Regularly check the site issuer’s site to know which deals and discounts are currently being offered.
Pick a credit card with useful features and various benefits. Being aware of the facilities allows you to use them smartly.