How to Select the Perfect Credit Card?

Look around and you’ll see a number of credit card options to entice you. But, how to find that one perfect card to meet your day to day requirements? You’ll surely come across a plethora of alternatives ranging from free cashback cards, rewards cards, travel cards to the exclusive premium bunch as well.

Getting confused? When I had to choose my first credit card, I also used to wonder which the best credit card is for me. How to go about it?

Let’s make the process of selecting the right credit card a bit simpler for you.

Tips to Select the Right Credit for You

Here are some handy tips to guide you towards opting for the best credit card for yourself.

Identify the Purpose:

First and foremost, analyse the purpose for which you need a credit card. Do you require it for shopping? Do you wish to pay your utilities through it? Or you simply look forward to getting cashback and interesting offers?

This will move you in the direction of choosing the card that fulfills your specific objectives for having it. Obviously, the choice of card for general spending shall vary from the one meant to collect travel and other incentives.

E.g. A credit card giving benefits or cashback on grocery won’t be of much use to a frequent traveller who looks for travel points to redeem.

Rate of Interest:

Nobody wants to bear a high interest especially when it is associated with a credit card. So, a card with a low rate of interest should be your priority. Don’t be in a hurry to apply hearing a promotional offer.

Do some thorough research before finalising any one card. You can compare rates offered by different providers and shortlist the one that charges relatively less interest.

Rewards & Offers:

This is something exciting for sure! Don’t miss to go through the available rewards that you feel can be used, if you earn them. Think what you like, saving money so it gets deposited in your account in the form of cashback? Do you want airline miles, hotel discounts if you wish to travel?

Or Are you fine with the discount on your shopping and restaurant bills? You wish to save on fuel and other monthly payments.

Anyways, it’s good to go for such a credit card whose overall benefits are suitable to you. Also, do confirm that the earned rewards remain valid for a longer duration.

A Free or Paid Card:

Now, this is entirely your perspective. Even a free card may satisfy all your basic credit requirements. However, if you are in search of some bigger and better privileges you might like to dig into the premium collection. It’s all a matter of preference, budget and needs.

Some cards don’t have any joining or annual fee. While others charge a nominal fee for their services. There’s yet another elite category that asks for a higher fee, owing to the bulk of advantages they provide.

Whichever way, a free or a paid card, check for all the different aspects and then take the final call.

Also Read: 5 Best Credit Cards in India for 2019

The Bottom Line

You simply can’t grab any credit card that you admire. Before approving, banks and financial institutions check your credit score and other important details. Definitely, one’s budget and spending habits also play a crucial role in the card selection process.

If you are a first time user with limited usage, you may easily get a free credit card. So, you can start enjoying the perks of a no annual fee card. If you like any other and wish to move ahead and apply for that one perfect credit card, you must qualify and meet the eligibility criteria.

Further, don’t forget to pay your bills on time. After all, for the next card that you apply for, your previous dues must be cleared. So, which credit card have you decided to apply and why? Do share your views.

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About Harleen Kaur

This is a guest post by Harleen Kaur, a Chartered Accountant, a passionate blogger running a personal finance blog @ Fintrakk.com , sharing knowledge and simplifying things in the field of Finance, Investment, Taxation, Career, and related topics.
View all posts by Harleen Kaur →

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