According to reports from NDTV Profit, beginners should ideally start with low or zero annual fee cards to avoid unnecessary financial burden. The article highlights that some cards offer fee waivers if certain spending thresholds are met annually. Key charges to monitor include late payment fees, cash withdrawal charges, and foreign transaction fees. Understanding these costs upfront helps avoid overspending just to meet spending targets.
As reported by NDTV Profit, credit cards typically charge 30% to 42% annually when cardholders fail to pay full bills on time. The article notes that nearly 40% of first-time users are not fully aware of interest charges and late fees, which can significantly damage overall financial health and credit scores. Missing payments and carrying balances are major factors that can negatively impact creditworthiness.
According to the NDTV Profit report, cardholders must understand the base conversion rate for earning points through credit card spending. The article explains that each point's cash value varies significantly between different cards, with some offering higher value when redeeming even with fewer points earned. Common perks include cashback, reward points, and discounts on shopping, dining, or travel that align with individual lifestyles.
As reported by NDTV Profit, banks establish minimum income levels for entry-level cards, and meeting these criteria is crucial to avoid rejection and potential negative impact on credit scores. The article recommends starting with a salary account to improve approval chances and help build credit records for future applications. Beginners are advised to select moderate credit limits that cover monthly expenses without encouraging overspending.
According to NDTV Profit, a responsive customer support team can provide crucial assistance during disputes or emergencies. The article emphasizes checking for 24/7 helplines, mobile app support, and easy grievance redressal capabilities when selecting a credit card. This comprehensive customer service infrastructure can significantly reduce stress during critical situations.