From low annual fee to reward points – credit card should tick these boxes

If you are looking for a good credit card, remember that it ticks most, if not all, boxes. There are certain important characteristics which a good credit card should possess.

Based on your specific circumstances, you should choose the one which meets these qualities. For instance, it has a reasonable interest rate, low annual charges, offers reward points and offers good service.

To make the most of a credit card, one should make sure that it meets following characteristics.

A good credit card has these characteristics

I. Annual charges: The credit card should have low annual charges. You can enquire about it before applying for it. However, some premium credit cards have high annual charges, but they provide premium services against those charges. So, one should make a conscious decision of what you are getting into.

II. High reward points: Another important feature of credit cards is reward points. Higher the reward points, better the card. These points can be redeemed to buy merchandise or get discounts on online shopping.

III. Low interest rates: Credit cards typically have high interest rates i.e., anywhere between 2-3 percent per month. Therefore, one should make sure that the card has a low rate of interest. A 1 percent lower rate of interest a month means 12 percent lower per annum.

IV. Good customer service: Another important quality of a good credit card is the responsive customer service. Typically, large banks have better customer service than their smaller peers.

V. Positive reviews from others: It is recommended to check the reviews shared on social media on the credit card you are applying for. If the reviews are overwhelmingly negative, you should avoid the card regardless of temptations. 

Disclaimer: Mint has a tie-up with fintechs for providing credit; you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit scores. Mint does not promote or encourage taking credit, as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.

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