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There are many credit cards out there. They all offer different incentives to entice you to apply. So how do you wade through the masses of information available, and weigh up the different choices that are on the market. This Review aims to give you some pointers as to what to look for to choose the right credit card for you.

When you select your card, you should look at the introductory rates, balance transfer rates, and other offers that may apply to new cards and new holders. Some will offer you truly amazing deals, especially if you have good credit. But remember the emphasis is on making sure it is the right deal for you.

The first thing you’ll need to decide when choosing your card, is the reason why you want one in the first place.

Some people choose to get a card for cash flow purposes. Using your card for your day to day living expenses allows you to leave your salary in your bank account to draw interest. This way, your money will continue to grow while you continue to buy the things you need. Then at the end of the month, simply pay your bill. Does this sound like you, or how you would want to use your new credit card?

Or you may want it for instant cash purposes. This way, you can use the credit card at an ATM and get instant cash, which is great for travel or going on a long and extended vacation. If this is what you primarily want the card for, you should look for one that has the lowest rate possible for instant cash transactions.

Are you likely to pay the balance in full each month, or only the minimum amount, or somewhere between? If you intend to pay the full amount then the interest rate on offer for outstanding balances should not be the key incentive to choose an offer. If you are likely to leave an outstanding balance each month then the interest rate is a key factor in your choice.

If so the key area you’ll need to look at is the APR (Annual Percentage Rate). The APR is what you will pay on what you purchase when the free period runs out. This is usually on outstanding balances and items designated as cash withdrawals (but can vary so check the terms on offer). APR rates will vary among credit cards, so it is always in your best interest to compare and shop around. If you plan on not paying the balance off monthly then the lower the APR rate you get, the better off you’ll be. If you do plan on paying off the balance each month then the APR is not your key incentive.

Another important area to look at when choosing your credit card is the incentives. There are numerous types of incentives on offer, such as reward points,cash back with purchases, add on deals on travel insurance or breakdown cover, 0% interest offers, balance transfer deals, the list seems endless. But don’t just go for the most eye-catching. Pick the deal with the incentives that best suit your needs.

Another concern with choosing your credit card is the minimum payment amount. Most start around 3% of the outstanding balance, although again this can vary. In addition check the interest free period. How many days grace do you effectively get before each purchase starts to attract interest?

When you make that final decision and choose your credit card, you should always make sure that you know exactly what you are getting. If you put some time and research into choosing your credit card, you’ll find the best one for you.

The world today runs on the cogs of money, the centralized resource to obtaining, using and disposing of all the primary and secondary resources. As such, financial management demands the highest attention whether personal or corporate finance, holding the reigns of function at all levels. Financial management today is diversified with respect to the normal Indian- in the form of loans, insurance, credit card facilities, auto finances, property loans, fixed deposits and tax savings to mention a few.

With the changing regulations and increased awareness, the options available to a person to garner savings and create a financial back-up are growing too. From the limited openings like Life Insurance Corporation for insurance, National Savings Certificates and National Savings Scheme, Unit Trust of India mutual funds, Public Provident Funds etc. The opportunities to invest and save in India have burgeoned into innumerable options with the finance avenues broadening the playing field. This article gives you an insight into the other developments in some of these financial avenues like loans, tax savings and credit card facilities that have occurred, sharpening the financial tools required for efficient management of your finances.

The concept of insurance is essential to have a good start on personal savings as well as back-up for emergencies; and with life insurance policies like Unit Linked Plan offering tax benefits along with flexibility in the premium tenor, one can make use of the opportunity to invest and secure amount.

Auto loans are another viable option, and with 60% of cars in India financed, the credibility is sealed! The car or vehicle being a depreciating asset, investment in auto loans must be carefully scrutinised with respect to Equated Monthly Instalment (EMI) rates and foreclosure charges, not to mention turnaround time and mode of repayment.

The third aspect of finances includes the tax benefits and savings which the Indian can accrue, on account of home loans and Public Provident Funds, the latter being a long-term savings option. There are many rebates on taxes offered by the Government on certain investments, and tax exemptions are offered for several saving instruments mentioned above and this list includes home loans as well.

An important aspect controlling most of the financial transactions today is the credit card and debit card option, which allows us to perform financial transactions conveniently. Although statistics show the debit card transactions ranking higher than their credit card counterparts, the concepts of credit card usage and the recent developments through Consumer Information Bureau India Limited are invaluable in financial management today.

Credit card owners who have outstanding amounts piling up can look to salvage their position by turning those amounts into personal loans, which come at a rate of 12-18% p.a. as opposed to the high rates (36-44% p.a.) levied on the credit cards.

The concept of credit information reports are new in India, though common practice abroad, which gives the credit worthiness of every individual owning credit cards and going for loans. The information pertaining to the repayment behaviours and financial history obtained from banks, financial institutions, credit card companies and housing finances is used by the bank or lending agency to gauge the creditworthiness, set up the rates and decide on how fast to issue loans.

Understanding the current financial trends in India and investing appropriately, maintaining a decent credit status is essential for today’s investment-savvy Indian to extract maximum returns.