Selecting a suitable credit card from the hordes of offers we receive daily can be overwhelming. However, this can be overcome by knowing the factors to consider while choosing a credit card. With the right credit card, you can save on interest and annual fees and enjoy attractive perks like reward points, cash back, and flyer miles.
In this article, we will discuss the factors you should consider when choosing a credit card .
Factors to look out for while choosing a credit card
There are several other factors that you must consider before selecting a credit card. They are as follows:
1. Rewards and Incentives : Credit cards often incentivise customers with perks like reward points, cash back and flyer miles. For example, some cards are co-branded and offer more rewards for specific merchants, while others offer a higher cash back rate for spending in a particular category. Credit card companies also frequently release promotional offers for their customers. Understanding the reward and loyalty programs offered by your shortlisted cards can help you select a suitable credit card for your needs.
2. Interest rates : It denotes the interest charged on the unpaid balance of your credit card. It is noteworthy here that you must pay your credit card outstanding balances by the due date; otherwise, you might accumulate significant debt. In Singapore, interest rates may vary for different credit cards, with some going as high as 26.9% per annum. Hence, it is best to get a credit card only if you are confident of paying your dues in full each month.
3. Annual Fees : Most credit cards charge annual fees, while some may offer promotional waivers for the first year. It is essential to carefully weigh the annual fees against the benefits offered by the credit card; if the benefits are not aligned with your financial and lifestyle preferences, it may not be worth paying the annual fee. Select credit cards, such as the Citi Cash B ack Card , offer a first-year annual fee waiver. Alternatively, there are instances when paying the annual fee instead of waiving it might reward you. For example, by paying the annual fee for the Citi Prestige Card , cardmembers get a welcome gift of 62,500 Citi ThankYou SM Points. With these Points , you can choose to redeem, shop, or even pay with Points on your favourite transactions.
4. Lifestyle and Spending Habits : Every credit card has its benefits and offers that cater to the needs of specific categories of customers. For example, if you are a globetrotter, travel credit cards offering air miles and travel perks will be more beneficial to you. If you spend mainly on groceries and shopping, you may benefit more from credit cards that offer rewards or cash back on such purchase categories. Hence, you must understand your lifestyle needs and financial requirements before you apply for a credit card.
5. Terms and Conditions : You should read the fine print and understand the exclusions and conditions to maximise the benefits offered by your credit card. Other factors like credit limits, annual fees, and late fees should also be taken into consideration. Paying attention to these details will aid you in choosing the right credit card that aligns with your needs.
Conclusion
Credit cards can be beneficial in increasing purchasing power, but it is essential to use them responsibly and pay off your outstanding balances on time. With so many options out there, it is crucial to compare your credit card offers by considering the abovementioned factors. By doing so, you can enjoy lifestyle privileges, cash back, and rewards tailored to your needs and unlock exciting benefits.
Disclaimer
The content reflects the view of the article’s author and does not necessarily reflect the views of Citi or its employees. Please read the products and offers on the Citi Singapore website for accuracy or completeness of the information presented in the article.
Contact Information
Sonakshi Murze
Manager
sonakshi.murze@iquanti.com