Many individuals believe that making everyday purchases using a credit card is not at all a good idea, but it is absolutely a myth. There is no harm in using your credit card for your daily spends if you are a responsible card user. Now, an important question that arises is “how can you find the perfect credit card for your daily spends? If you are trying to find the answer to this question, you don’t need to worry as it is not a very difficult task. you just need to keep a few important points in mind and follow some tips to find the perfect card for your everyday spends.
You should know why you need a credit card and try to find out a card according to your requirements. This is the first and most important step to follow whenever you choose a credit card for yourself. In this article, we are going to discuss some important factors to consider so that you can find the perfect credit card for your everyday purchases. Continue Reading for further information:
How To Find The Perfect Credit Card For Your Daily Spends?
In order to find the most suitable credit card for your everyday needs, you will have to keep various things in mind. Some of the most important points that you need to consider are given below:
Know Your Requirements
Knowing your requirements is always the first step when choosing the right credit card in any category. You should analyze why you need a credit card and what all benefits are you expecting to earn from a credit card. You can do this only by understanding your spending behavior, i.e, you need to analyze what are the categories where you spend the most. Now, if you are looking for a credit card for your daily needs, you should filter out the sub-categories where you make the most of your daily spending. It is of no use to get a premium travel credit card when you spend more on shopping.
Look For Affordable Cards With Decent Reward Rates
If you want to get a credit card just to make your daily purchases using it, you should not go for the high annual fee credit cards as those cards generally come with premium travel and lifestyle benefits. But, when you are only making some retail purchases, it is a better idea to go for a basic card that offers a good reward rate. There are many low annual fee credit cards in the market that provide you with a great reward rate on everyday spend categories, like groceries, departmental stores, etc. Some of the best examples are SBI SimplySave Credit Card, SBI SimplyClick Credit Card, HDFC Freedom Credit Card, Axis Bank ACE Credit Card, Axis Bank Neo Credit Card, etc.
Try To Get a Low-Interest Rate Credit Card
Interest Rate is one of the most important factors to consider when it comes to choosing the right credit card. If you are trying to get a credit card for your daily purchases, you should also make sure that the interest rate on that card is not very high. Even if you are confident enough that you will make timely payments, you must consider the interest rate as no one knows about upcoming emergencies. There might be situations when you find yourself unable to pay the outstanding balance and a high-interest rate will lead to your poor financial health in such a situation.
Benefits of Using Your Credit Card For Everyday Purchases
There are several advantages associated with using credit cards for everyday purchases, provided that you use your card responsibly and make the bill payments on time. the following are some of its greatest benefits:
- You can earn more rewards and hence, you can save more on your spends by making most of your purchases using credit cards. On the other hand, if you make your daily spend using cash, you will not be earning any such rewards.
- It will be easier for you to achieve the milestone spend and avail of the milestone benefits provided by your credit card.
- It will be easier for you to get your fee waived if you make everyday purchases using your credit card. Many credit cards come with a fee waiver condition, under which the annual fee is waived if the cardholder achieves a particular annual spend. By making more and more purchases using your credit card, you can even make your card lifetime free.
It is one of the biggest credit card myths that using a credit card for everyday purchases is not good and one should avoid doing so. There is no disadvantage in using your credit card for everyday spends as far as you are a responsible credit card user. It may not be a good idea for those who don’t believe in themselves and are not confident about making timely payments on their credit card. Just make the credit card utilization ratio in mind and try not to exceed 30% of your total credit limit. Making daily purchases with your credit card will only benefit you if you use your card wisely.