How to Understand Which Credit Card Is the Best for You

There are several credit card variants in the market, and every card is catered to a separate user base. So, assessing your needs is a crucial step to finding the ideal one for yourself. The right card can help you increase your purchasing power, give you sufficient time to pay your bills, help you enjoy perks, offer savings and give you a resource to rely on during an emergency. 

Fundamentals of Credit Cards in India

When choosing the best credit card for your needs, understand your spending habits and goals. For instance, if you predominately shop online, look for a shopping credit card that offers more deals and points in online shopping. If you travel domestically for work, look for a travel card that offers access to airport or railway lounges and discounts on tickets. 

Also, look at the fine print and get all the credit card details for free from the issuer’s website or app. Check the MITC document for this, which contains all the fees, inclusions and exclusions. It also has a list of terms that are important for you to know, such as minimum amount due or cash advance fee. 

Types of Credit Cards Available 

Listed below are the credit card variants which can help you narrow down on the type of card that could work for you. 

Cashback Credit Cards

This type of card mainly offers cashback against transactions. There are two types of cashback offers that you can avail of:

• Flat-rate Cashback Credit Cards
• Tiered Cashback Credit Cards

While choosing a credit card, you will see that credit card companies offer either flat cashback or cashback based on conditions. Sometimes, companies also provide combinations of rewards.

Lifetime-free Credit Cards

As the name suggests, this is a free credit card; offers on such cards depend on the credit card company. The rewards may include:

• Reward Points
• Fuel Surcharge Waiver
• Restaurant Discounts
• Airmiles
• Other Deals and Discounts

Like any other unsecured credit card, you can access all these benefits without having to pay any joining or annual charges.

Travel Credit Cards

If you are a frequent traveller, then getting a travel credit card will help. With such cards, you will get a variety of benefits, like:

• Accelerated Airmiles
• Lounge Access
• Deals on Hotels
• Discounts on Ticket Prices
• Travel Insurance

This will enhance your travel experience, making it both stress-free and rewarding.

Dining Credit Cards

If you are a food lover, then this credit card is the perfect pick for you. With a credit card like this, you can enjoy deals on dining out and ordering in. The only thing you will need to do is figure out the partner restaurants of your credit card company as well as any food loyalty programs that you could automatically become a member of. 

Shopping Credit Cards

The name says it all; these cards allow you to access huge savings by shopping at partner retailers, e-commerce sites, merchants or brands. You can get:

• Deals on grocery shopping
• Vouchers when shopping on Amazon, Myntra or Flipkart
• Bonus reward points that you can redeem during future transactions
• Joining benefits 
• Cashback on shopping 

Rewards Credit Cards

This type of card helps you earn points on every eligible transactions. The reward structure may be simple or complex and may vary from credit card company to company. For example, you have spent ₹100, this will earn you 1 reward point. So, on spending ₹1000, you will earn 10 reward points. 

You can redeem these reward points on your next purchase or as statement credit (as cashback) or for merchandise. Check the conversion value and the eligible transactions before you choosing this card. 

Fuel Credit Cards

If you commute by your vehicle daily or have a fleet, then getting a fuel credit card is advisable. With such a card, you can avoid fuel surcharges while purchasing fuel from designated gas stations. The fuel surcharge is a tariff imposed by credit card companies on fuel purchases. With a surcharge waiver, you can waive this fee.

You can also get discounts on fuel purchases, accelerated reward points, and other perks that bring down your fuel-related expenses. 

Co-branded Credit Cards

What are these cards about? These cards: 

• Are issued in partnership between a bank and a brand, or platform like Myntra or EaseMyTrip
• Are designed to cater to the loyal customers of such platforms
• Help you earn additional rewards, discounts and exclusive offers tailored to your shopping or purchase preferences

Understand Which Credit Card Would Work for You

To weigh the pros and cons and choose the right category, keep the following things in mind:

• Consider your lifestyle and your daily requirements
• Understand the features of the credit card and the deals it provides
• Assess how much you are willing to pay to maintain this credit card

Get a sound understanding of these three aspects to ensure that the choice you make proves to be beneficial for you in the long run. It can be hard for first-time credit card users to find their preferred credit card. However, if you want a credit card that provides benefits across different categories, then consider the One Credit Card.

This credit card has many advantages like helping you earn 5X reward points on your top 2 spending categories. You can also use the OneCard App to find the best offers around you with the help of GPS. You can also pay recurring bills without any hassles with this credit card. So, apply now to enjoy this lifetime-free credit card!