The whole idea of owning a credit card seems quite fancy for many. It indeed is a great upgrade from a debit card and helps you keep backed with cash in times of need alongside offering you a host of benefits.

However, not many are well-acquainted with the nitty-gritty of a credit card and tend to go for one as and when it comes along their way. Let us look into some of the key concerns before opting for a credit card in India.

Why? This is because using your credit card smartly is the only way to keep you away from falling in a vicious debt trap.

Also Read Best Indian credit card for fuel in 2019

The relationship of your income and your credit card

When you opt for a credit card you are ought to furnish some of the key details of your identity and income to your credit card provider. Your income is one of the most important parameters that determine your credit card limits.

The higher your income the higher would be your credit card limit. This is because your income slab reassures your credit card provider of your repayment capabilities. So, it is very important to assess your minimum income threshold value before opting for a credit card.

The relationship between you and your bank

If you are an old customer of a bank, you might be provided a credit card a lot faster than you imagined. This is because the bank has your records in-store already, and hence takes lesser time in assessing your credit repayment credibility.

If you have a consistent flow of money in your bank account, getting a credit card would not be a difficult process for you.

Don’t Miss 9 Best Credit Card for Travel 2019 Review & Comparison

The significance of your credit history

Your credit history speaks on your behalf in the financial world. If you have faltered on repaying loans taken previously on time, it might be difficult for you to get a credit card anytime soon.

Before your credit card provider offers you a credit limit, they are ought to check your CIBIL score, and if its hints at bad behavior, your credit card application have chances of getting rejected.

The purpose of your credit card

Are you taking a credit card just because you got a call from a credit card company? Have you analyzed your purpose of owning a credit card? If not, it’s time to think again! If you want a credit card for travel purposes, choose one that gives you the maximum benefits of travel.

If you are looking to shop with your credit card, you better go for one that offers you maximum savings and exclusive benefits on shopping. It is important to do a bit of research on this before accepting any credit card from a credit card provider.

Must Read 10+ Best Credit Cards in India with Reviews (2019)

A free credit card vs an annual fee credit card

If 40-50% of your expenses are borne through your credit cards, it is better to go for paid premium credit cards as these give you more saving benefits and higher reward points.

Getting a credit card in India is also possible through a fixed deposit account. If you do not have a great credit score and are still looking to have a credit card, you can opt for a credit card against your FD without any income proof. So, define your credit card purposes and avail a credit card that suits your need in the best possible way.