You may need a credit card for several reasons including to improve the CIBIL score, earn cashback or discount, make purchases on EMI, or large transaction transactions.

If you haven't used a credit card yet, here are a few essential things that you need to consider before getting your first credit card.

Annual Fee and Other Charges

Check out the annual and renewal fees of your credit card. Also carefully read the waiving criteria of the annual fees. Majority of credit card issuers waive the annual fees if you spend a particular amount in a year through the credit card. Think about your expenditures and analyze whether you would be able to spend that much amount in a year or not.

The other charges that you are liable to pay on a credit card include Late Payment Fees, Cash Advance Fees, Rate of Interest Charged on the Balance Amount, GST, Foreign Currency Markup Fees, Cash Withdrawal Charges, Mobile Alert Charges, Balance Enquiry Charges, and Duplicate Statement Charges among others.

Credit Limit

The credit limit of a credit card is decided as per your CIBIL, income, and payment history. You can ask the bank representative for maximum credit limit as per your eligibility. Go with a credit limit that is capable of meeting your required expenses at least.

Available Offers

Check out the various offers that come bundled with your credit card to make the right choice. For instance, if you need a credit card to meet your monthly fuel expenses then there is no point getting a card that has only offers for movie tickets and retail stores.

From fuel and travel to shopping and dining; there are several categories of credit cards you can select from. Some major categories include Lifestyle Credit Cards, Rewards Credit Cards, Shopping Credit Card, Travel and Fuel Credit Card, Business Credit Card, and Professional Credit Card among others.

Offers on credit cards are normally give in the form of Discounts, Cashbacks, Reward Points, and Fuel Surcharge Waiver among others.

Terms and Conditions

Check out all the terms and conditions including validity of offers, transaction fees, payment terms, validity of usage, and more.

Considering above mentioned points will help you make an informed decision and get the right credit card.