Choosing the best credit card in India can be a daunting task due to the variety and options available with unique features. There is no one-size-fits-all solution while getting credit cards – the card that may suit your friend may not be suitable for you!
You can select a card that resonates with your financial habits by understanding your day-to-day spending categories and lifestyle needs. Assessing other factors like the card’s acceptance, available benefits, rewards structure, applicable rates, and other charges is also crucial for decision-making.
Comparing Credit Cards Based on Features
Here are the various types of cards you can choose from, based on your usage requirements.
Travel Cards
These credit cards have perks and reward programs designed around travel. They’re an ideal option if you are a frequent traveller. Here are some of the perks that you can enjoy:
- Discounts on flight bookings, hotel bookings, car rentals, etc.
- Access to domestic and international airport lounges for free
- Priority boarding and extra luggage facility on flights
- Concierge services that assist with travel planning
Lifestyle Cards
If you prefer using a credit card for day-to-day transactions, selecting a credit card providing rewards on a wide variety of purchases can maximise your savings. You may enjoy the following perks:
- Reward points on online and offline purchases
- Discounts and cashback on utility bill payments
- Discounts or special offers on movie tickets
Fuel Cards
These credit cards provide rewards or cashback on fuel expenses. This way, you can commute to your office or take weekend trips without worrying about fuel expenses. Here are some perks:
- Cashback on fuel transactions
- Discounts on fuel purchases at partner fuel stations
- Reward points for every fuel purchase
- Fuel surcharge waivers
Rewards Cards
With these cards, you earn reward points for every purchase, along with accelerated points on specific spending categories. You can exchange them for a range of rewards, including:
- Conversion into cash to pay your bills
- Discounts on purchases or payments
- Travel benefits
- Gift cards and vouchers
Student Cards
Student credit cards are specifically designed for college students looking to build their credit history and access funds affordably. These cards typically come with an easy-to-meet eligibility criteria along with zero or no annual maintenance charges. These cards may also provide cashback and other perks, depending on the issuer.
Factors To Consider While Selecting a Card
While there are numerous types, choosing the one that suits your current requirements is necessary. Apart from the reward programs, you can enjoy the best credit card benefits by analysing these factors:
Applicable Interest Rates
It is crucial to select a credit card on the basis of interest rates. Selecting a card with a lower rate credit card can come in handy if you’re unable to repay the dues before the due date. With a higher rate, there are chances that a substantial interest may accumulate and make the repayment even more difficult for you.
Creditworthiness and Experience with Credit
Before applying for a credit card, check your credit score as well the required credit score for the card. It is not only an essential factor in the approval process but also in getting a decent interest rate and credit limit on the card. With a higher score, issuers consider you a creditworthy borrower, hence offering you better terms.
Other Applicable Fees
Apart from the interest rate, there are other related charges like annual fees, joining fees, and late payment charges. Though some credit cards don’t charge annual and joining fees, it is important to verify these with your issuer. With this information, you can make a decision whether this card is affordable for you or not.
Offered Credit Limit
The issuer sets limits depending on various criteria. Make sure to check before getting a credit card because having a higher limit may result in overspending. If you opt for a lower limit, that can increase your utilisation ratio hampering your credit score. Hence, it is important to go for an optimal credit limit that suits your spending habits.
Considering these factors, you can choose the best credit card in India and maximise your savings accordingly. The One Credit Card is one such option that allows you to earn 5X rewards on your top two spending categories each month. What’s more, you can enjoy lucrative offers this festive season on travel, grocery, retail, fashion and more.
The One Credit Card App further adds value to your experience by showing you the best offers near you via GPS. It also allows you to set spending limits and stay on budget with ease. Apply online to enjoy all the perks of this lifetime-free credit card.
