Which Credit Card is Right for You: How to Choose the Best Credit Card?

Choosing the best credit card to buy for yourself is the most important, and most challenging part of buying a credit card. With the wide variety of credit card options available, it is essential to identify your specific need and then apply for a credit card accordingly. 

While each credit card will have its own advantages to offer, you should still consider your major requirements and reasons behind buying a credit card and then buy one that actually meets all your needs. 

Before moving on to some of the most important factors that you should consider while buying a credit card for yourself, let us take a look at the various types of credit cards available to get a clearer picture.

Which Credit Card is Right and for Whom?

Listed below are some of the most common types of credit cards available depending upon the various reasons that would push you to buy one. Identify your needs in order to make the appropriate credit card comparison-

  • Credit Card Beginners- Basic Credit Cards are ideal for you if you are a newcomer. These cards work best for individuals who are new and wish to learn how credit cards work. These cards offer a limited credit limit depending on the applicant’s monthly income. Basic credit cards do not offer any additional benefits on the amount spent.
  • Limited Usage of a Credit Card- Zero Annual Fee credit cards are those cards that do not charge any annual fee. Since there is no fee on holding the card, there are also very few additional benefits offered on this card. Hence, it is only suitable for individuals who do not make much use of their credit cards.
  • Travelers- If you love to travel, then you should definitely look for specific credit cards for travel as they will give you rewards points which can further be redeemed to make any similar bookings in the future as and when you make airline bookings, hotel bookings, etc. using your travel credit card.
  • Regular Transporters- If you need to commute on a daily basis, you should look for the best fuel credit card as they are majorly meant for transporters as these cards provide fuel surcharge waivers, thereby saving the cardholder’s fuel expenses. The cardholders also earn reward points and use them to make substantial savings on their fuel expenses all through the year.
  • Frequent Shoppers- Shopping credit cards are the best credit cards for online shopping as they let you shop at various physical and online stores and offer you discounts in the form of cashback, reward points, etc. depending upon the total amount of the transactions made.
  • Financial Savers- Reward credit cards provide the best credit card offers in the form of huge benefits on all your spending in the form of accelerated reward points on a few specific transactions. The bonus points earned can later be used to avail discounts on future purchases. You can also redeem these bonus points to reduce your monthly credit card bills.

Secured credit cards are another option for you if you are willing to work on your savings. These cards allow you to benefit from attractive interest rates against fixed deposits and help you increase your credit score if used carefully. 

Another alternative to the similar type of credit cards is the low-interest credit cards that offer a relatively lower interest rate than the other cards of a similar category.

Similarly, Cashback credit cards also offer a specific amount of cashback on the transactions made using the credit card. It must be noted that only a few specific types of transactions would be eligible for a cashback.

  • Entertainment lovers- Entertainment credit cards are the ones suitable for people who are regular visitors to movie halls, concerts, amusement parks, etc. as these cards offer discounts and deals only on purchases that are related to entertainment. Lifestyle credit cards are another similar option suitable for individuals who spend a major amount on lifestyle activities such as premier screenings, night clubs, fashion shows, etc.
  • Businessmen- Business credit cards are ideal for businessmen as they help them in maintaining their business and personal transactions effectively. To get a business credit card, it is important for the applicant to have a high credit score. 
  • Students- Student credit cards are meant for college students. This type of credit card is the best credit card for students as it helps them manage their finances and credit better, as the card has a lower interest rate. The applicant must be a college student, above 18 years of age to be eligible for this type of credit card.
  • For the premium class- Premium credit cards are meant for only a few people as they provide access to golf clubs, airport lounges, concierge services, and insurance, etc. When used effectively, these cards offer coupons for complimentary travel and/or hotel accommodations. It must be noted that there are strict eligibility criteria for a premium credit card.

Points to Consider While Making the Credit Card Comparison

Apart from deciding on which type of credit card you want to buy, you must consider the following factors while making the choice-

  • Pick only the credit card that actually suits your needs. With the wide variety of credit cards available, it might be challenging to pick any one. However, it is equally important to pick one as it is difficult to decide which one. A frequent shopper who is on the lookout for cashback and discounts on offline and online stores would obviously need a different credit card than a frequent traveler. Once you have made this decision, the further process would be much easier.
  • Identify the features of a credit card. Each credit card comes with varied features, expenses, and benefits. Hence, it is absolutely essential to identify all the features of the credit card that you are opting for and look for the best credit card offers in order to make the right choice. For instance, you may come across credit cards that offer huge discounts but would charge you a high annual fee, or there may be some that would help you improve your credit score or offer you loan options against your credit card. These features would help you understand your needs better and eventually, make the right choice.
  • Credit card comparison is vital. Identifying your needs and then, closely looking at all the available options are the first few steps that you should take. A closer look at the factors like additional benefits offered by the credit card, hidden expenses, reward points, discounts/cashback, cash withdrawal fee, charges on foreign transactions, annual credit card fee, etc.
  • Work on your credit score. One of the most common reasons behind buying a credit card is to improve your credit score. And the same reason is also an important factor to get your credit card approval. Hence, it is important that you check your credit score using a credit card eligibility checker online before you apply for the best credit card. Multiple rejections would hurt your credit score in the long run and will lower your chances of getting a credit card even in the future. Hence, it is better to ensure that you have a sufficient credit score before applying for one, instead of getting rejected for the same.
FAQs
How to make a credit card comparison?
To make the right credit card comparison, it is important to identify your financial needs first, and then closely look at all the available types of credit cards. You must compare the best credit card offers among them, look out for any hidden expenses and additional benefits that the credit card has to offer besides your specific needs to buy the credit card.
How can I get the best credit card offers?
If you are looking for the best credit card offers, you must check out the features of Reward credit cards, or Cashback credit cards. If you have any specific need such as travel or shopping, besides looking for the best credit card for online shopping or credit cards for travel, then you may also apply for a travel credit card or shopping credit cards and earn reward points, discounts, and cashback.
Which is the best credit card?
There is no specific best credit card that would suit the financial needs of all individuals. The correct way to choose the best credit card for yourself is to first identify your needs and then, apply for the card that suits you the best.
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