A credit card is an essential financial tool. The best credit cards offer various rewards and benefits. Choosing the right credit card can be tiring because many credit card providers offer various cards and they offer different perks and benefits. For example, SBI, HDFC, and ICICI offer a variety of cards based on various categories. You should consider various factors, like credit limit, interest rate, annual fees, offers, and reward points, before choosing a credit card.
Understand Your Spending Patterns:
Take a moment to reflect on your spending habits and see where you are spending most of your money. Identify the key categories where you are making most of your purchases.
Most popular categories:
- Groceries and everyday shopping
- Dining and restaurants
- Travel and Transportation
- Entertainment and streaming services
Compare Rewards Program:
Credit cards offer you various rewards and programs. Before choosing the credit card, understand the rewards offered by the card. Some cards offer rewards on entertainment, travel, and groceries. Also, understand if there are any caps on the rewards or cashback. Choose the best credit card for rewards based on the following metrics:.
- Cashback Rewards
- Travel Rewards
- Exclusive Discounts
- Access Gift cards
- Dining Rewards
- Fuel Rewards
Consider Sign-Up Bonus:
SBI, HDFC, and other major credit card providers offer various rewards and programs. Before choosing a credit card, understand the rewards offered by the card. Some cards offer rewards for entertainment, travel, and groceries. Also, understand if there are any caps on the rewards or cashback. Choose the best credit card for rewards based on the following metrics.
Evaluate Annual Fees or other charges:
The annual fee for a credit card can vary from card to card based on the credit limit or other perks. Choose the card with the low annual fee or go with the card which suits your priorities. Also, consider the rewards and other perks concerning the annual fee. Some credit cards do not have an annual fee and some credit cards come with a higher annual fee. Here you can see our list of lifetime free credit cards. Various Charges applied on credit card-
- Annual Fee
- Convenience Fee
- Interest Charges
- Late Payment fee
- Balance Transfer Fee
- Over-the-Limit Fee
- Foreign Transaction Fee
- Cash Advance Fee
Credit Card Application Process:
Some credit cards have a simple application process, while some other cards might require a lot of documentation. A lot of credit cards have a 100% paperless application process, which is good for the environment and accessibility. Some credit cards have a high approval time, while others have a very short time. You can go with the credit card, which has a low approval time and minimal documents, or otherwise based on your preference.
Read Credit Card Terms:
A credit card is a very important financial tool. Understand all the terms and conditions, or else you will end up paying some hidden charges. Ponts in it-
- Grace period
- Reward points redemption policy
- Card replacement fees
- Credit limit
Customer Service:
Credit card customer service is very important in opening your account and resolving your queries. This can completely change your experience of a credit card. You can analyse customer service based on the following metrics:
- Accessibility
- Support Quality
- Online tool
Check Your Credit Score:
Your credit card determines if you are eligible for a particular card or not. If you have a good credit score then you don’t need to be worried about this. But if you do not have a good credit score, then you have to choose any of the cards whose requirements you meet. People without credit scores or lower credit scores can only get add-on credit cards or secured ones. Secured credit cards are issued against your FD and Add-on cards you can get with your friends and family.
Compare Interest Rates:
For all credit cards, interest rates may vary from bank to bank. If you carry a balance on the credit card then you have to consider going for the low interest rate credit card. Annual Percentage Rate (APR) can vary from 12% to 36% or more based on the card issuer and creditworthiness. Always make sure to pay your credit bill on time to make the most out of your credit card.
Look for additional perks:
Some credit cards also offer you some additional perks for enhanced shopping experience, especially during festive seasons. Many of these offers include specific discounts, cashback deals, or bonus reward points on specific categories like electronics, clothing, and groceries. Some credit cards also partner with e-commerce platforms like Amazon or Flipkartto exclusive deals or early access to sales. Amazon Pay ICICI credit card is a great choice in this category.
Check Co-Branded Credit Cards:
These cards are a very popular choice if you are looking to maximize the benefits in a specific category. To issue these co-branded credit cards, the provider partners with a specific brand to provide exclusive benefits.
Here Are Some of the Popular Co-Branded Credit Cards
- Amazon Pay ICICI Bank Credit Card
- Flipkart Axis Bank Credit Card
- Swiggy HDFC Bank Credit Card
- Yatra SBI Card
- BPCL SBI Octane Card
Conclusion:
Choose the best credit card that suits your spending habits. Analyze the interest rates, rewards, cashback programs, perks, annual fees, and credit limits to find the best credit card for you. Choose a credit card with transparent terms and conditions, and remember that your credit score also influences your options, so maintain a healthy score to get better cards.
ALSO READ: 7 Different Types of Credit Cards in India
