Value propositions that suit your needs: Banks offer several features and benefits on credit cards that cater to different needs of customers.
When looking for the right credit card, you should begin by asking yourself what is the need that the credit card should fulfil. For example, if your need is to stay connected with people, then you should look for rewards of free talk time for your spends.
Also look for rewards that are provided as a continued benefit for card usage, since this earns you long-term rewards for being loyal to the programme.
Credit cards help manage finances better: When used wisely, credit cards provide you extended credit lines. One of the most important features of a credit card is the retail interest rate. If you do not pay your credit card outstanding in full upon your payment date, your outstanding balance will be subject to interest charges. If you think you'll carry a balance, then look for a credit card that provides you with options of transferring balances at attractive low interest rates.
When comparing credit cards, make sure you are aware of their annual fees. There are credit cards that are free for life, others that charge a monthly maintenance fee and yet others that charge an annual fee. Also compare other fees such as late-payment fees, over-limit fees, interest-free credit period and cash advance fees.
Convenience of payments: If you are constantly on the go and lead a busy life, you may not want to constantly worry about paying your credit card bills on time. When choosing a credit card, you should look for flexibility to pay your monthly credit card bills through multiple channels — mobile applications on smartphones and online banking facilities that enable payments when you have a current or savings account with the same bank. Sign up for standing instructions that auto debit your account on the payment due date. Look for telebanking services, deposit machines and a network of exchange houses. Flexibility of channels can save you a great deal in late fees.
— The writer is Head of Cards at Mashreq
