In today’s environment, having a credit card like an American Express credit card is no longer a sign of wealth. In fact, it has become a daily necessity irrespective of the fact which types of American Express cards you get for yourself. If you still haven’t got a credit card to date and are wondering whether you should get one in 2024, this post is for you. We’ve outlined important benefits that make credit cards an invaluable ally in 2024.
- One gets Immediate financial access: A credit card functions as an instant loan in your pocket, ready to provide you with financial assistance at any time. Whether it’s an unanticipated expense or a flash sale you don’t want to pass up, your card has you covered irrespective of the fact which types of American Express cards you have.
- Comes with flexible repayment: When you have the option to repay over time, you have more control over your budget. You can choose to pay your bills on a monthly basis or if you have made a highly valuable purchase, you can divide major purchases into manageable monthly payments.
- Helps you build a positive credit profile: Do you know using your credit card carefully can help you build a positive credit history? This may help you get the different types of American Express cards available which you might want due to high reward points. Having a high CIBIL score will demonstrate to lenders about your financial discipline and dependability. And, we don’t have to tell you but having a good credit history earned through responsible credit card use often leads to with you getting better types of American Express cards.
- Rewards and exclusive offers: Some credit cards help you transform your spending habits into a rewarding experience in which every rupee spent generates points. Some credit cards can also help you get offers in restaurant discounts to rebates. Many types of American Express cards also provide travel benefits, such as airport lounge access and discounts on flight bookings and hotel stays
- Gives you a grace period: Most credit cards offer a grace period following the payment cycle, giving consumers the opportunity to settle their Credit Card bills without accruing interest.
- Fraud protection: Nowadays, different types of American Express cards include zero-liability protection, which means you won’t be held liable for unauthorized purchases if your card is stolen or misused and comes with features such as OTP authentication and 3D secure PIN to keep your online transactions safe from cyber threats. You will even receive real-time SMS and email notifications thus, keeping you in the loop and ensuring any irregularities are detected as soon as possible.
- Gives you monthly expenditure breakdown: Receive detailed spending breakdowns to help you understand where your money is going and where you can save. This is a very pertinent feature if you can’t seem to track your finances.
- Comes with a mobile application: Most banks provide mobile applications that allow you to track card usage, pay bills, and even freeze your card in the event of loss or theft.
- Can be used in an emergency: It is going to be 2024 and by now you must have understood that a financial emergency can strike anytime. Having an American Express credit card can provide you with emergency cash assistance.
Nowadays credit card applicants now have a plethora of excellent options and different types of American Express cards to select from. Having so many options, however, might make making a selection difficult. To help you choose the best credit card for your spending habits and financial goals, read through the following points:
1. First, examine your credit score: Checking your credit score is the first step in selecting the best American Express credit card. Most of the best rewards credit cards require at least decent credit, but there are also cards for people with fair credit and no or little credit history. Even if your credit score is excellent, don’t apply for too many cards at once. When you apply for a new credit card, your credit report will be hard pulled, which will temporarily lower your credit score and remain on your credit record for two years. Furthermore, multiple hard pulls in a short period of time may reduce your chances of getting approved for a credit card in the near future.
Before you begin your search for and apply for a credit card, you may check your credit for free on different online portals. If your credit isn’t as good as you’d like it to be, work on it before applying for a credit card. Paying all of your bills on time (or early) and paying down debt to lower your credit utilization ratio are the most effective and simple approaches to improving your credit score.
2. Determine what you need a credit card for Once you’ve determined the types of cards you’re eligible for, it’s time to get picky. What exactly do you want your credit card to perform for you? Do you want rewards, or airport lounge benefits or is there something else you are looking for? Narrow down what you are looking for and accordingly select the credit card.
3. Select the card with the best value: Aside from the type of American Express credit card you should have, we recommend selecting one with advantages and features that are important to you. Make yourself familiar with interest rates and expenses.
4. Calculate how much are you willing to pay for your credit card: What is the cost of your credit card? Compare the fees on the following parameters associated with various credit cards:
- Annual fees: Most credit cards include an annual fee that is waived if you meet certain spending requirements.
- Finance charges: When you use revolving credit (carrying your outstanding balance past the due date), banks will charge you interest.
- Late payment and over-limit fee: The bank may charge you a late payment fee if you settle your outstanding balance after the due date or spend more than your credit limit.
- Cash withdrawal fee: Using your Credit Card to withdraw money from an ATM incurs fees and interest.
Every card has a monthly credit limit: If you want to use your card frequently for travel, food, and entertainment, you should consider one with a higher credit limit. Choose a card with a lesser credit limit if you use it infrequently.
In conclusion
It might be difficult to select the proper American Express credit card for your needs with so many various types of credit cards available around us. It is worthwhile to conduct some research and then compare a few cards to get the best fit for you. The selection becomes a little easier once you decide what features and benefits are important to you.
