Last year, a report established the rapid growth in the number of credit card users, with more than 10 million cards being circulated in a year. Accounting for almost a 27% rise in its number of users, the total number of cards had nearly touched 49 million. This number of new card users has been recently estimated to range between 25 and 30 million, making it one of the most important of the active financial tools embraced across India.
Rise of credit card users, consequently, has necessitated the clarification over the interest rates which are levied on them. While on the one hand, it is essential to keep a tab on certain factors to check the credit card interest rates, which can be levied, it is also important to choose the right card.
How to select the best credit card with the lowest interest rate
It is important to keep in mind the following factors to effectively select the best credit card with the lowest interest rate.
- Fixed or variable rates: Potential credit card users should choose between fixed charges and varying interest rates which can be levied on a credit card. Typically credit card interest rates are levied due to late payments, even though few card issuers also offer fixed rates for delayed bill clearing. While fixed rates are helpful for individuals running the risk of late payment, others should opt for variable rates.
- Type of spending: It is important to choose a credit card based on the spending habits one is going to use it for to avail discounts and reward points with such use. While it does not directly impact the interest rate, higher discounts result in lower bill amounts, making it easier to clear them. Furthermore, the redemption of reward points can ensure even lower bill amounts and convenient interest clearance on late payment.
- Discounts on the mode of payment: Any user considering ‘can I pay credit card bill with Paytm’ can be assured that usually multiple payment options are offered by different financial institutions. However, it is advisable to check the various options of payment, especially if a cardholder is eligible for discounts on the use of any specific mode of transaction. While it does not reduce the interest, it can effectively reduce the amount to be paid in interest.
Also, individuals opting for a higher credit limit need to consider the charges applicable on such increase. It is thus advisable to opt for a card whereby charges are not applicable on credit limit increase. While one can utilise the tips to increase their credit card limit allowing higher spends, it is necessary for card users to understand that the minimum bill clearance amount increases too, non-clearance of which attracts interest. It is thus best to keep the limit within one’s repayment capacity.
Application procedure for the best credit cards in India
Many financial institutions offer low credit card interest rates, though it is important to choose the right one as per the tips discussed above. Once you have selected the right card, the application procedure can be completed in just a few steps explained below.
- Visit the official website of your selected credit card provider.
- After selecting the credit card of choice, confirm that you fulfil eligibility requirements.
- Next, fill up the application form with your personal and financial details.
Submission of the filled up form completes your application process.
Applicants choosing cars like the RBL Bank Credit Card can complete the process within minutes. Along with low credit card interest rates being offered on them, the card issuer also provides pre-approved offers which make the application procedure quick and convenient.
Such pre-approved offers are provided on multiple financial products like credit cards, personal loans, business loans, etc. You can check your pre-approved offer by providing personal details like name and phone number.
Once applied for, individuals must also know the ways to check credit card application status if they do not receive the confirmation within time. Typically credit card applications are approved and confirmed within 24 hours.