Sunday, July 14, 2024
HomeBusinessFinanceA Comprehensive Guide on How to Choose Best Credit Card

A Comprehensive Guide on How to Choose Best Credit Card

With growing purchasing power of consumers, it’s no surprise that over a million credit cards are issued in India every month. What’s more, there are so many varieties of credit cards available that choosing the best free credit card in India is no cakewalk!

Even when you search only for cards with zero joining and annual fees, you can end up feeling overwhelmed. Here’s when you can use the following list to make a smart decision. 

Assess Your Credit Score

Looking for the best free credit card in India? First, check your credit score to find out what you are eligible for. Consider the following when weighing your options:

  • The higher the score, the higher your probability of getting approval for a credit card with better perks and without any maintenance fees.
  • Once you know the credit range you fall in, narrowing your credit card search is easier.
  • You can employ specific strategies to improve your credit score if it falls in a bad or poor range.
  • A good credit score doesn’t always guarantee credit card approval, as your eligibility depends on various factors, such as your income, employment type, age, etc.
  • Even if your credit score is excellent, don’t apply for multiple credit cards simultaneously.
  • Each time you apply for a credit card, card issuers run a hard inquiry that can dip your score for a short time.
  • Some issuers design cards like secured credit cards for those with low credit scores. 

Review Your Lifestyle and Spending Habits

As credit cards are considered to be a lifestyle necessity, check if the benefits offered by a card match your spending habits. For instance:

  • Check the fees and interest associated with the credit card EMI conversion facility if you are a frequent shopper or a technophile who likes to buy the latest gadgets.
  • Look for a card offering more rewards perks for online shopping, dining, international use, and other categories based on how you spend and transact.
  • Assess if the cashback deals and discounts are from merchants, brands or retailers you normally shop from.
  • Check the issuer’s website to find out how to redeem credit card points and if there are any redemption charges.

Examine Interest Rates

A credit card’s APR indicates the interest rate you will have to pay on any outstanding balance. Fortunately, these rates don’t kick in once you pay the entire amount in full and on time. 

While the APR range can vary across issuers, a rate between 14% and 27% is generally considered ideal. Check it to ensure your card falls within this range.  

Identify the Right Card Based on Your Needs

If you have a spotless credit history, you can choose from a wide range of specialised cards. Compare the features of various cards and choose the best option to get more bang for every swipe. For example:

  • Travel credit cards offer points or airmiles to frequent travellers. You can redeem these air miles to get discounts on air travel, free access to airport lounges, priority check-ins, or upgraded hotel stays.
  • To keep your personal and business expenses separate, choose a business credit card. These credit cards offer rewards on business-specific expenditures, helping you track them more efficiently.
  • Credit card issuers also provide cards specially designed to cater to the needs of avid shoppers. Some of the best free credit cards in India offer great cashback, rewards, and exclusive discounts on shopping. 

Select a Card Offering the Highest Value

Now that you have shortlisted some cards based on what you need and what you qualify for, take these things into account:

  • Consider the welcome benefits, zero-interest introductory period, the ease of how to redeem credit card points, and the reward program itself.
  • Remember to factor in additional costs, such as late payment charges, and so on.
  • Ensure that the waiver of joining and annual fees doesn’t require you to reach a very high spending milestone.
  • Check the issuer’s customer service and the ease of setting limits for international spending, getting an add-on card and more. 

Now that you know how to look for the best free credit card in India, it’s time to get started. A premium metal credit card that comes with zero joining fees, zero annual fees and zero rewards redemption fee is the One Credit Card. Enjoy 5X rewards on top spends, fuel surcharge waivers, and exclusive deals on grocery shopping and travel too! 

Aided by a robust mobile application, you can control every aspect of this card anytime and from anywhere. The One Credit Card also helps you use your card on a budget, redeem points conveniently and get exclusive deals on food deliveries and dine-outs. Apply now to reap all its benefits.  

RELATED ARTICLES

Most Popular

Recent Comments