If you have already got a credit card and are planning to get one other one, it’s vital to make notice of sure factors in order that you don’t find yourself getting a similar or related card with the identical options. Moreover, you ought to be away from your function of making use of for a brand new card. It could possibly be the next credit score restrict, reward factors, entry to lounge or low cost on shopping, and so forth.
For example, you could possibly get a card that might praise the previous card by way of options and advantages.
These are the important thing factors that you could possibly remember:
I. Complimentary card: The second bank card that you just purchase ought to ideally praise the earlier card. For example, when your earlier card is a purchasing card and you’re a movie buff, it is sensible to get the second card which supplies reductions on film tickets.
II. Assembly the requirement: One other level which is value contemplating is that you must get a bank card which meets your present want. For example, if you’re in search of one thing particular – be it airmiles or reward points or greater credit score restrict, the brand new card ought to meet your requirement in full.
III. Further charge: Yet another level that’s value contemplating is that the brand new card carries a charge which ought to be reasonably priced to the cardholder. Each further card may result in an extra charge. The advantages of the brand new card ought to ideally outweigh the price it carries.
IV. Credit score restrict: Yet another key characteristic of the brand new card is that it expands your credit score restrict. This comes useful to enhance your credit score rating by decreasing your Credit score Utilisation Ratio (CUR).
V. Billing cycle: One other key characteristic that you must take a look at is that its billing cycle is totally different from that of present playing cards. At instances, some card holders use one card to clear the invoice of one other to stretch the interest-free credit score interval. For example when one card’s curiosity free interval is 40 days and the second card additionally affords an identical interval with 10 overlapping days. Then the full credit score interval that one can use is 70 days.
Disclaimer: Mint has a tie-up with fintechs for offering credit score, you will want to share your data in the event you apply. These tie-ups don’t affect our editorial content material. This text solely intends to teach and unfold consciousness about credit score wants like loans, bank cards and credit score rating. Mint doesn’t promote or encourage taking credit score because it comes with a set of dangers akin to excessive rates of interest, hidden costs, and so forth. We advise buyers to debate with licensed specialists earlier than taking any credit score.
