Choose a card that suits your personality

Nov 19 2012, 10:03 IST
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You have to pay back at the end of the free credit period but our impulse shopping instincts sometimes does not listen.  (Reuters) You have to pay back at the end of the free credit period but our impulse shopping instincts sometimes does not listen. (Reuters)
SummaryWhen we talk about credit card usage we find different people managing it in a different way

end up in situations where you donít make full payments.

The most important property, which the carefree should look for, is the interest rate. As you carry forward the balance your interest expense is going to be high. Itís advisable to choose a card which offers the lowest interest rate. You should also check for zero annual charges as well.

Example: Axis Bank Easy Platinum/Gold Credit Card (lowest interest rate of 1.95 per cent p.m.)

The topsy turvy

You donít understand financial management. Almost every time you donít even pay the minimum amount due on your credit card. All the customer care executives of the bank know you by name and are in constant touch with you. You always end up paying heavily in interest and late payment charges.

For you a prepaid card is the best bet as it will save a lot of money, which you pay as interest and various charges. It will also prevent you from spending beyond your means.

Example: SBI EZ-PAY Card, HDFC GiftPlus, ICICI Gift Card

The Credit Paranoid

You never wanted a credit card in the first place. According to you being in debt is a crime. You applied for the card just because it made your life easy in some scenarios like booking air tickets and overseas purchases. You only swipe it in some kind of emergency and it goes unused at times for months.

The best card, which will suit your needs, is the one with no annual charge. You never make late payments and you are not a frequent user so interest rate and reward structure of the card doesnít matter much for you.

Example: ICICI Bank Preferred Silver Cards, Axis Bank Gold Card, Bank of India Classic Card, ICICI Bank Cash Gold etc.

So do get clued on to your credit personality, research on a suitable card and then dial the bank.

óThe author is CEO, BankBazaar.com

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