Credit cards are the most user-friendly option during a cash crunch. Considering the economy is still struggling to come out of the Pandemic woes, credit cards are your best option to regulate any cash flow issues that you might be facing.
IT makes little sense to liquidate one’s investment and savings for a brief period of cash and expenditure mismatch. Hence, credit cards come to the rescue. Generally, all cards have at least a month’s deferral on your billing cycle and thus ease your cash crunch crisis.
Having said that, it’s important to select the best option for your needs as the financial market has a wide variety to select from.
Below is a list of 5 important things that you must consider:
1) Annual Fees
▪ Most of the credit cards have an annual fee associated with them whereas others have zero annual fees component. Depending on your needs, requirements, and spends as well, sometimes the bank may waive of your annual fees. You must check this factor upfront so that you are aware of what the card would cost to you.
2) Interest Rates
▪ Certain preferred credit cards offer very competitive interest rates in case you need to withdraw cash or you wish to defer your bill payment. For instance – The RBL bank has a credit card that offers withdrawal of cash anywhere 24*7. RBL Bank also offers an innovative credit card that combines an instant loan along with the card.
▪ RBL bank also offers a credit card with extremely competitive interest rates in case of a deferral on your payment. Hence, it is advisable to check the interest rate, compare it to the market offers, and accordingly choose a credit card that offers the lowest interest rates
3) Rewards and Offers
▪ Financial Institutions such as banks have a wide variety of credit cards suited for every need. For example – RBL bank offers 43 credit card varieties ranging from rewards on movies, groceries, medicines, sports, apparel, lounge access, travel, fuel, etc.
▪ Earning rewards also depends on the kind of spending that you do. Thus, you must understand what kind of expenditure you have, how much you could use your card, and the kind of rewards and benefits you wish to avail.
4) Credit Limits
▪ The credit limit is the amount of financial exposure that the credit card company is willing to take on you. This would depend on your annual income, financial worthiness, credit CIBIL score, and other factors.
▪ Some financial institutions are more aggressive and customer-focused than others. For example, some government banks offer very low credit limits whereas private banks like RBL Bank credit cards offer better and higher credit limits.
▪ This would essentially mean that you can even make bulk, large purchases on your card without it being declined.
5) Customer Service
▪ This is the most important and essential factor while choosing your credit card. A prompt and dedicated customer support team would greatly impact your experience.
▪ A dependable, efficient, and effective client support team would mean that you can reach out to the bank or financial institution easily, without having to wait for eternity on the interactive voice response systems (IVRS).
▪ Banks such as RBL are known for their quick and committed customer service ensuring that the customer experience is delightful and excellent.
In conclusion, you
need not worry about being faced with a financial crisis or a cash crunch when
credit cards have your back. A wide range of rewards would also ensure your
spending earns you discounts and offers like never before. However, you must
consider and evaluate a card on the above levels to truly have a rewarding
experience.
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