How to Choose Best Credit Card?

Select the Most Applicable Credit Cards for Your Needs

Let’s face it: selecting a credit card can be one of the most daunting tasks. There campaigns all over ths internet that promise perks such as rewards, cashback, access to lounges, and lifetime free offers. While everyone makes it seem appealing, how does one know which credit card really fits your needs?

Don’t worry, you have all the relevant information at hand. This is not a sales pitch- just practical tips . This can serve as a guide whether you are a student applying for your very first credit card or someone looking to switch to a premium card.

First Things First: What Does It Take to Be a “Best” Credit Card?

There is no single “best” credit card. A best card for someone who travels a lot is completely different from one that is appropriate for a homemaker who buys things online. So when we refer to the “best credit card,” we are talking about the card that offers you the best benefits according to your lifestyle and spending habits.

Start with This Question: Why Do You Want a Credit Card?

Before you even look at offers, ask yourself:

“What will I use the card for?”

Here are a few common answers—and what kind of card works best for each:

1. Daily shopping or groceries?

→ Look for cashback cards or cards with supermarket and fuel benefits.

2. Online shopping?

→ Choose a card that gives rewards or discounts on Amazon, Flipkart, or Swiggy.

3. Traveling often?

→ Go for travel credit cards that offer free lounge access, air miles, or hotel discounts.

4. Building credit history?

→ Start with a basic or secured credit card with low fees and use it wisely.

5. Luxury lifestyle or high spending?

→ Explore premium cards with concierge services, high reward points, and exclusive perks.

Credit Card Features You Should Always Compare

When evaluating the best credit cards for yourself, don’t just go by the brand name. Look at these key features:

1. Annual Fees and Joining Fees

Some cards are lifetime free, while others charge ₹500 to ₹10,000 annually.

Premium cards often have higher fees but better benefits.

Check if the fee is waived when you spend a certain amount per year (like “Spend ₹1 lakh and get next year free”).

Tip: If you’re not a heavy spender, a low-fee or zero-fee card might be smarter.

2. Rewards & Cashback

Different cards offer rewards in points, cashback, or discounts:

Reward Points: Earned for every ₹100 you spend. Can be redeemed for products, vouchers, travel, etc.

Cashback: Flat money back on your purchases—direct and useful.

Category-Specific Rewards: Some cards give higher rewards for dining, fuel, travel, or online shopping.

3. Interest Rate (APR)

If you carry forward a balance (which you shouldn’t), the bank charges interest—this is often 30%–40% per year!

Some cards offer a 0% interest period for the first 50 days.

Paying your dues on time? Interest won’t matter.

Missing payments? You’ll feel the pain.

4. Credit Limit

This is the maximum amount you can spend using your card.

Higher credit limits give you flexibility.

But high limits can also tempt overspending.

5. Offers & Partnerships

Many cards have tie-ups with brands—giving you discounts, offers, or EMI benefits:

Amazon ICICI Card – Great for Amazon buyers.

Flipkart Axis Card – Useful if you shop on Flipkart often.

6. Fuel Surcharge Waiver

If you drive regularly, check if the card removes the usual 1%–2.5% fuel surcharge at petrol pumps. It’s a small perk but adds up over time.

7. Airport Lounge Access

Love traveling? Cards like HDFC Regalia, SBI Elite, Axis Magnus, and others offer free airport lounge access—domestic and international.

Some cards also give free access to Priority Pass lounges globally.

Tip: If you travel even 2–3 times a year, this feature can save you a ton on food and comfort.

8. EMI Options

Some cards let you convert big purchases into EMIs at low interest. Super useful for:

Laptops

Appliances

Phones

Flights & vacations

9. Customer Service & App Usability

A great rewards card is useless if the bank’s app doesn’t work or support takes forever. Make sure the card provider has a good mobile app, SMS alerts, payment reminders, and helpful customer service.

Things to Consider Before Applying for a Credit Card

Now that you know what to look for, here are a few important things to double check before applying:

1. Your Credit Score

A good credit score improves your chances of approval and helps you get better limits and benefits.

Don’t know your score? You can check it for free on platforms like CIBIL, Experian, or OneScore.

2. Your Income Level

Some cards (especially premium ones) require a minimum monthly income—say ₹50,000 or more. Be honest on your application to avoid rejection.

3. Existing Debt

If you already have loans or outstanding EMIs, think carefully before adding a credit card. It can help or hurt depending on how you manage it.

4. Spending Discipline

Credit cards aren’t free money. They are tools. If you don’t trust yourself with one, it’s okay to wait. A debit card is safer until you build better money habits.

5. Hidden Charges

Always read the fine print. Watch out for:

• Late payment fees

• Over-limit charges

• Foreign transaction fees

• Card replacement or add-on card fees

Banks are slick at hiding these, so read the terms or ask for a charges list.

Final Tips: How to Make the Most of Your Credit Card

1. Pay on Time – Always pay the full due before the due date. No excuses.

2. Track Your Spending – Use the bank app to keep an eye on purchases.

3. Redeem Points Regularly – Don’t let rewards expire.

4. Avoid Cash Withdrawal – It’s expensive and interest starts immediately.

5. Keep a Card Long-Term – It helps build credit history and improves your score.

To Sum It Up…

Choosing the best credit card isn’t about getting the flashiest rewards or the highest credit limit. It’s about finding the card that suits your lifestyle and helps you spend smartly.

Take your time. Compare a few cards. Understand the terms. And most importantly—use your card responsibly.

When used wisely, a credit card is not just a payment tool—it’s a powerful financial asset.