Normally, a card with a higher annual fee enjoys more benefits like higher credit limit, higher accident insurance cover, accessibility to airport lounges, travel discounts etc. How much is the joining fee and the annual fee? Nowadays, with the aggressive competition going on between the card issuing banks, some of them are waiving their joining fees and also their annual fees for their customers. However joining fees as the term suggests is what you pay when your application form for a card is accepted. It varies from bank to bank and on the type of card applied for. Annual fee is payable in advance, but not paid in cash. It is billed into the first billing statement received by the card member at the start of each year. What is the interest rate? If you are the sort of person who forgets to pay on time, or prefers to live off credit, the interest rate charged would be of supreme importance. Most credit card companies charge anywhere between 2% to 3 % per month, which comes to around 35% to 43% per year. It is always advisable to pay off the entire amount on due date, or, if you have a large bank balance, look for card companies that provide the transfer balance facility. The balance transfer rate is lower for a certain period (say six months) and then the normal rates apply. How much is the Add-on card fee? If you are interested in buying add-on cards for your children, spouse or friend, ask for the add- on card fee. Just be sure to note that the responsibility for payment of the card you gift to someone is yours. The statement will come to you and you will be settling the bills on the add-on card to the credit card company. What advantages are there in a Global card? If you are a frequent overseas traveler, this use will come in handy. A Global card can be used for paying expenses in foreign currency just like you use a credit card to pay in rupees. Nowadays, a Global card is being issued at the same cost as for a similar domestic one. It is better to have a global card, especially if there is no premium attached. What use is a co-branded card? A partnership between a bankcard issuer and a commercial partner results in a co-branded card. This entitles the cardholder to lots of free offers, prizes, discounts on co-branded products. If a customer loyal to a particular brand, it would be sensible going for those co-branded cards. For e. g. Citibank and IOC, Bank of India and Taj group of hotels etc. What's the lost card liability? The lost card liability, before reporting it to the bank is unlimited or up to your credit limit of your card in case of theft. However, the lost card liability after you have reported the same to the bank is usually a standard fixed amount, usually Rs 1,000. What free offers are available? Personal accident insurance for air, road or otherwise is packaged along with the subscription of credit cards. Also baggage cover, purchase protection cover and credit shield is bundled free of cost along with the card. Settle for the one that gives a higher cover. How long is the free credit period? The days of credit one gets depends on the statement date and the date of transaction. On an average, one gets around 20 days of free credit. However, in some cases, if you buy just after the statement date, you could end up getting up to 50 days of credit. Is immediate cash withdrawal possible? Immediate cash withdrawal is possible. The cost component for a cash withdrawal could be classified as follows: Service fee (transaction fee) each time you pull out money, and Interest rate for the period for which you have used the money - until settlement date. If you are going to withdraw cash frequently, better watch out for this cost. Some ATMs also extract a little service charge at petrol pumps, Airports etc. Is a Helpline available? A 24-hour Helpline service from the card company helps the cardholders during the non-banking hours. Reporting of theft, checking of available credit limit and other enquiries can be made by the cardholder round-the-clock. Ultimately, the decision to choose a credit card lies in your hands. Use our tips and guidelines wisely and use them to draw out a card that fits your profile the most. Remember to look out for low interest rates, global usage and obviously the various free offers. |


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