Choosing one of the credit cards with no annual fee available today can impact your finances. However, selecting the right card is often hampered by misconceptions about eligibility requirements and card benefits.
These myths can sometimes prevent you from making the most of these instruments and can lead to confusion. Read below to look at some common credit card myths and check out simple facts to debunk them. It also helps when searching for the best credit card online that truly fits your needs.
Clearing Up Some Deeper Credit Card Misunderstandings
Take a look at some common yet popular, wrong ideas about credit cards:
Paying only the minimum amount due on the bill each month is a good way to manage card payments.
Fact: Paying only the minimum amount due by the deadline stops late payment fees. It is true, but it does not mean you can avoid all extra costs.
Interest is charged on the rest of the unpaid bill, which can be high.
Relying on minimum payments can lead to a growing debt. It can also increase your credit utilisation ratio, which might affect your credit score over time. Paying the full amount is usually the best way out.
All credit card reward points are pretty much the same and easy to use for anything.
Fact: Reward points are great, but every card’s points work differently. Different types of rewards enable so many benefits, depending on the card. Whether you use them for flights, merch, or statement credits, they can benefit a specific type of spender or can be difficult to use.
Redemption options can also vary. Some cards have many flexible choices, while others might have more limits on using these benefits.
It is wise to understand the specific reward program of any card. This includes how points are earned, their value, and how to redeem them.
If a bank offers to increase a credit card limit, accepting it will always hurt the credit score.
Fact: This is not necessarily true. A higher credit limit can lower your credit utilisation ratio if managed well. It is the ratio of credit used compared to the total limit available.
A lower credit utilisation ratio (below 30%) is a plus point for an excellent credit score.
The key to a good credit score is responsible usage. Accepting a higher limit and spending it fully can lead to a lower credit score. However, the limit increase is not bad for the score if spending is kept in check.
Using a credit card for small, everyday buys like groceries or coffee is pointless for earning rewards.
Fact: While small purchases might not earn huge rewards, these small amounts add up significantly over time.
Many credit cards, including some credit cards with no annual fee, offer reward points on all spending. Consistent use of daily essentials can lead to a good collection of points over the year.
Some cards even offer accelerated rewards or bonus points on categories like groceries or utility payments, making small spending even more rewarding.
Having many credit cards is always a sign of bad money management, no matter how well they are used.
Fact: The number of credit cards you have is less important than how responsibly you manage them. Having a few credit cards and paying all bills on time while keeping balances low can improve credit scores due to improved utilisation.
Too many cards can lead to overspending or make it hard to track payment due dates. However, careful and responsible use is the most important factor.
Knowing these truths about credit cards is important. It helps you choose cards that are truly right for you. When searching for the best credit card online, it is essential to have accurate information.
Finding Clear and Valuable Options Today
The good news is that the credit card market in India offers clearer and user-focused options. Modern issuers are bringing out cards designed with a fantastic digital experience and transparency. The One Credit Card is a good example of this clear approach.
It shows a clear and straightforward way to use credit, leaving no room for myths. It is a great example of modern credit cards with no annual fee that still offer great value. For beginners, the metal card itself gives you that premium feel that usually premium cards offer.
One Credit Card’s digital-first approach comes with the all-in-one management app- OneCard App. The app gives you full control over your spending and card controls. This includes converting large payments to EMIs, setting spending limits, tracking real-time spending, and browsing through rewards you earn.
Furthermore, One Credit Card also has a smart 5X rewards program on the top two spending categories. The OneCard app tracks your spending patterns and allows you to pay rent, manage OTT subscriptions, and even access a virtual card. This shows how cards, even those without yearly fees, can give amazing, personal value and meaningful rewards.
As the best online credit card, it provides you with features such as budget management and payment reminders. If you’re looking for the best credit card online, the One Credit Card can be a great start. Download the app or visit the website and apply now to experience the digital luxury yourself.
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