Credit cards provide benefits across different categories. Some cards may help you save on fuel expenses while others may provide discount or cashback on online shopping. Choosing the right credit card that aligns with your lifestyle and spending pattern will help you save a considerable amount on favourite purchases. You must identify your needs, analyze your spending behaviour, check what you are eligible for, make credit card comparisons and then apply for the right credit card. Here we have discussed five things that will help you answer the question “Which credit card is right for me?”
Identify your needs
One of the most important things, in order to find the right credit card, is to identify your needs. Credit cards are offered under multiple categories like shopping, cashback, rewards, travel and more. You should analyze your requirements and spending behaviour so that you can make the most out of the credit card you choose.
For instance, if you are someone who frequently shops online on brands like Flipkart, Myntra or Amazon, then having a credit card that offers the highest benefits on online shopping will be beneficial for you. Similarly, there is no point in getting a travel credit card when the last trip you took was a year ago. Decide what type of credit card suits your requirements, shortlist a few cards in that category, compare and then choose.
Check what you are eligible for
Every credit card has a different set of eligibility criteria. Hence, it is important to check which credit card you might be eligible for. One of the most important factors that determine your eligibility is your credit score.
The card issuer checks your credit report to identify your creditworthiness whenever you apply for a card. Issuers prefer to give credit cards to people who have a good credit score, preferably above 750. However, some issuers also offer credit cards to those with no credit history. You must check for the same and apply accordingly. For instance, if you do not have a good credit score, you can apply for secured or entry-level cards to begin your credit journey or improve your credit score.
Compare multiple options
When it comes to selecting the right credit card, you should always compare multiple cards to make sure that you are getting the best deal. While comparing credit cards, you should consider reward rate, bonus reward categories, annual fee, interest rates and much more. There might be a possibility that other credit cards offer similar benefits at a low annual fee or better benefits at the same annual fee. Hence, you should always compare credit cards offered by multiple issuers. This is an ideal way to find the best credit card for yourself.
Consider the Joining/Annual Fee
Most of the credit cards come with a joining or annual fee. Credit cards with higher annual fee usually come with a better set of benefits as compared to cards with low or no annual fee. To find the right credit card, it is important to analyze how much you are ready to pay for it. In some cases, you can also avail a joining or annual fee waiver by achieving a certain spending milestone.
You should compare the fee charged with the value-back offered by the card and then see whether the cost of the card is justified. If you are not getting enough benefits, then you should consider applying for other cards. In case you do not want to pay an annual fee, you can apply for a lifetime free credit card as per your requirements.
Suggested Read: Lifetime Free Credit Card: Everything You Should Know About
Read all the terms and conditions
While applying for a credit card, it is important to read about all the related terms and conditions. Apart from the joining fee, there are other things that you should consider such as finance charges, introductory offers, foreign transaction fee, cash advance fee, late payment charges and much more.
For instance, some credit cards offer activation benefits but they may be subject to certain terms and conditions, such as reaching a pre-set spending threshold within a specified period. You might end up losing the activation benefits if you miss reading the fine print.
So, these were the things that you should consider while choosing the right credit card. You should choose a card that will help you achieve your financial goals efficiently. Besides this, using a credit card responsibly is as important as choosing the right one. Find the best credit card for yourself and use it wisely to make the most out of it.
