What All to Factor in When Applying for Premium Credit Cards
Due to all the advantages and features that credit cards have to offer, many people prefer to use them for their payment needs. Your eligibility for loans and credit cards as well as your likelihood of approval will both increase with a high experian credit score. With credit cards, you can even maintain and improve your credit score, with the impact being visible when you do credit score check.
Given that almost all banks provide a wide range of credit cards tailored to various target markets, including those for fuel, travel, cashback, premium, shopping, etc., it’s imperative to select the best credit card after taking the most important factors into account.
Because people in higher income brackets, particularly those who frequently check their experian credit score, have specific financial needs and expensive lifestyles, nearly every credit card issuer offers premium credit cards to cater exclusively to this market segment. They receive greater benefits and more exclusive rewards as a result of their high spending propensities and lifestyle demands. Different cards and issuers have distinctive features and advantages, even among premium cards.
People with excellent credit should benefit from the standard premium card features, which include free access to airport lounges, waivers of fuel surcharges, insurance for aviation accidents, lower currency conversion fees, 24/7 personal concierge assistance, and more reward points on purchases than are offered with other card categories.
Compared to other credit card categories, premium credit cards have higher joining/annual fees and eligibility requirements; however, these higher benefits and reward structures come at a higher cost. The card issuer only distributes certain cards to qualified customers because they are invitation-only. If it turns out that your experian credit score is low , don’t forget to do free credit score check, because failing to do so could lead to rejection.
When applying for premium credit cards, there are many things to think about because the best credit card can help you maximise the benefits based on your spending patterns, lifestyle choices, and other factors.
In addition to checking your cibil credit score prior to applying for any card, let’s dig deeper to understand the crucial factors to consider when using premium credit cards:
spending patterns Examining your spending patterns is one of the first steps in selecting the best credit card. It’s important to evaluate your spending before choosing a credit card because the majority of credit cards aim to provide higher reward points and other benefits for a specific type of transaction. Select the credit card that offers the most benefits based on the types of transactions you typically make and your spending habits. Make it a habit to do credit score check each month after getting a card because even a good card can lower your score if you don’t use and repay it responsibly.
Joining and annual fees
The joining fee and annual fee charged by card issuers for a variety of services and facilities are the next consideration you should make when choosing your card. Due to their prestige benefits and high spenders, premium credit cards have comparatively higher annual and joining fees. Many credit card issuers will waive these fees if cardholders use their cards to make a certain number of purchases within a certain period of time.
Select credit cards that offer advantages over their various costs, such as savings, cashback, points, etc. Keep in mind that maintaining good credit will help you get better and more cards or necessary loans in the future. This can be achieved by regularly monitoring your experian credit score.
Do not ignore the welcome benefits and joining bonus
When contrasting welcome bonuses and other benefits provided by card issuers, there is one more crucial aspect to take into account. These perks may consist of gift cards, coupons, cost-free club memberships, and extra bonus reward points, depending on the lender.
After paying the joining fee, the SBI Elite Card provides a welcome e-gift voucher worth Rs. 5,000, while the Axis Bank Reserve Card provides 50,000 reward points upon card activation and renewal. When you pay the annual fee and make purchases totaling Rs 30,000 within 90 days of receiving your card, you will receive 11,000 bonus membership reward points as a welcome benefit.
Remember that applying for a credit card with high fees is not a good idea because they will be added to your bill and force you to make additional financial sacrifices. Paying any account balances that are past due, or in the worst case, just the minimum amount necessary, can also damage your credit score. Ensure to do credit score check each month to see if it has increased or decreased as a result.
Expiration of the rewards
Read the terms and conditions that cover redemption, accumulation, and validity period before choosing a credit card. Because credit card reward points typically lose their value two to three years after being accumulated, this is the case. By doing this, you would prevent yourself from losing out on rewards redemption perks like instant redemption at partner stores, conversion to miles, redemption against gift cards, etc.
Finance charges applicable
Even if you make it a habit of paying your credit card bills on time and in full, the significance of routinely comparing and analysing the finance charges on various credit cards does not diminish. This is due to the possibility that, due to financial difficulties, you won’t be able to pay all of your bills in full and on time, which will result in finance charges. Additionally, if you don’t pay even the minimum amount due, your cibil credit score will suffer.
Keep in mind that visiting online financial portals rather than the websites of specific card issuers is the most practical way to compare and select the best credit card for you. Based on their preferences, income, and experian credit score, these websites assist in matching each customer with the best credit card available.
