A credit card is a kind of loan. In this, you spend first and pay later. Different credit cards have been made for different expenses. There are generally two types of credit cards. These include free and annual charge cards.

Often, we are confused about which of the free or annual credit card charges to take. What will be better for you? Let's talk about it in detail.

What is a free credit card?

Through a credit card, you not only get the benefit of payment. Rather, you also get benefits like cashback, reward points. You can use these reward points while shopping. Free credit means that you do not have to pay any annual maintenance charge on this card. However, after making a purchase, if you do not pay in full within the stipulated time limit, you have to pay a lot of interest. This free credit card is good for those who are using it for the first time.

What is a credit card with an annual charge?

Credit cards with annual charges are those on which you have to pay an annual maintenance fee. This fee can be 500, 1000, 2000, or even more. It depends on your credit card type and service.

Annual Credit Card: As its name suggests, you have to pay a fee or charge to use its service. More benefits are given by the bank or financial institution in credit cards with annual charges. At the same time, you also get more reward points for it. If you use a credit card more, then it will be better for you.

Which one is better for you?

If you are going to use a credit card for the first time. Or use it less, then a free credit card will be better. Whether you use an annual credit card or not, you have to pay a charge or fee for it.

Choose the right credit card

Before selecting a credit card, it is important to assess your expenses correctly. You have to see on what the most expenditure is being made. Because credit cards are designed for different expenses. You must choose a credit card keeping in mind your expenses.

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