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Where to Begin and What You Need to Know About Credit Cards and Points

Having your first credit card with the best credit card deals is a huge accomplishment, but it also comes with a significant adjustment period. Understanding how credit cards function is a good starting point, but it’s not enough to know how to use your card wisely. You’ll save money and develop good credit faster if you know the characteristics and details of the process before you get started. Getting the best credit card deals for the first time might be a daunting experience. In addition to helping you create a great credit history, credit cards are powerful financial tools that can benefit you in various ways if used wisely.

Listed below are important factors you should know before availing of a credit card


When applying for a credit card, your income is critical. As part of the application process for a new credit card in India, the card issuers will inquire about your income. This serves as evidence to the credit card company that you will be able to make good on your debt. The number of credit card options available to you increases as your income rises.

Credit limit

Your credit limit will likely be set at a low amount for the first few months to reduce risk. You may be able to increase your credit limit once you’ve mastered the ins and outs of using your credit card. Furthermore, some card issuers may offer you a credit limit that is limited by your salary.

Terms and conditions

When you own and use one of the best credit cards in India, you agree to certain terms and conditions detailed in the fine print. You must familiarise yourself with the card’s APR range, associated fees, and the specifics of how incentives function. Ensure to read the terms and conditions in their entirety for safe usage.

Interest rates

As long as you pay off your credit card due amount in whole and on time, you effectively utilise the bank’s money for free. Your credit card’s annual percentage rate (APR) will apply to the balance if you carry it over from month to month. 

Grace period

If you pay off the debt in full and on the due date, the issuer will not charge you interest during the grace period. You must pay off your balance in full before your next billing cycle ends to get a grace period. If you fail to pay your debt in full by the due date, you will be charged interest on the unpaid balance.

Card-related fees

Check all of the card’s fees to ensure you haven’t missed anything. Everything from joining and annual fees for transferring and cash advance to a foreign transaction and over-limit fees are items you need to watch when owning a credit card. Take the time to familiarise yourself with these statistics before getting hit with unexpected fees.

Maintaining a healthy credit utilisation ratio

Regardless of your credit limit, it is important to watch your expenditures. Even if you have an excellent payment history, a high credit utilisation percentage is not helpful for your overall credit health. Using more than 30% to 40% of your credit card’s available credit will lower the risk of repaying your card bills, which will drop your credit score.

Understanding the effects of credit cards on your credit score

Your credit score is influenced by your use of a credit card, which serves as a record of your financial behaviour and how you handle debt. Credit cards can harm your credit score if you overspend on your credit card.


Getting your first credit card is an exciting milestone, but it’s also difficult to accomplish wisely. It is critical that you are familiar with the inner workings of the best credit cards in India and thoroughly review all of the fine print that comes with using one. 



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