How to Pick the Best Credit Card in 4 Easy Steps

Stepping into the world of credit cards can be daunting, and when it comes to finally settling on one credit card among hundreds of options, that becomes an even scarier challenge!

Credit cards are a wonderful tool, and with the right credit card, you can unlock amazing rewards, enjoy cashback on your purchases, and build a strong credit history. But with so many out there, how to choose the best credit card in India for your needs? No need to worry, we’re here to help!?

Let’s walk you through our easy 4 step formula for choosing the best credit card for you! One card to rule em’ all, one card that aligns with your financial goals and lifestyle!

Step 1 - Check your credit/CIBIL score

Do you find yourself asking the question, how to pick the best credit card for me? Well, the first step will always be knowing where you stand and how eligible you are. Your credit score plays a vital role in determining the credit cards you qualify for, and the tier of your creditworthiness will determine the eligibility and options available to you.

Here is how to check your credit score:

• Check your credit score here ; we offer a quick and free credit score overview.
• If you want to see a full credit report, pick any of the top credit bureaus, such as Experian or CIBIL, and check your report on their official site. You may have to pay a small fee to obtain your complete credit report.

Review it carefully to ensure there are no errors or discrepancies that could negatively impact your creditworthiness. A strong credit score will open doors to premium credit card offers with better interest rates, higher credit limits, and superior rewards programmes.

Don’t know how to determine if you have a good score? Here’s a breakdown of your credit score for a better understanding of what your credit score number means.

• Less than 580 - Very poor
• Between 580 and 669 - Okay
• Between 670 and 739 - Nice
• Between 740 and 799 - Very Nice
• Above 700 - Excellent

If you have a poor score, here’s a guide on how to improve your credit score!

Step 2 - Figure out your needs and examine the features

Now that you have a clear picture of your creditworthiness, it's time to evaluate your needs. Commonly, there are three types of credit cards:

Credit building cards, aka secured credit cards

These are the introductory credit cards for students and individuals who have no credit history; these are called secured credit cards. Although these credit cards require you to put down a deposit, such as an FD, before they can be issued, they are easiest to get. And if you do choose this type of credit card, don’t worry about the deposit; it’ll be returned to you when you close it or upgrade it to an unsecured card.

Balance transfer cards

These are the kinds of cards that have lower interest rates and can help you save money on interest. If you already own a credit card but the interest rate is too high, just transfer the outstanding balance to this card lower interest rate card and save your money.

Reward earning credit cards

The most popular kinds of credit cards are those that primarily focus on and offer a myriad of rewards, such as cashback, reward points, retail offers and discounts, travel benefits, and so much more! These credit cards usually have a higher APR, but you can easily save a tonne of money by getting a significant chunk of your spent money back in the form of reward points or cashback.

Step 3 - Narrow it down and compare your best options

After picking one lane and one type of card, all that is left is to narrow it down to a few choices, but there are still hundreds of options within each type described above.?

Simply consider your spending habits, lifestyle, and financial goals. Do you travel frequently? Are you a shopaholic? Or perhaps you simply want a credit card for emergencies and building credit. Whatever your requirements may be, understanding them will help you identify the features and benefits that matter most to you. Here’s how you can make the process easier:

• Identify Your Spending Habits: Determining your primary spending categories, such as groceries, travel, or entertainment, will help you realise what kind of credit card you actually need.
• Evaluate Rewards Programs: Compare each card’s rewards programme offered by different cards - cashback, travel points, or miles—thoroughly to maximise your savings after each spend. Check out our list of best rewards credit cards.
• Examine Fees and Interest Rates: Make sure to check and become aware of annual fees, foreign transaction fees, and the APR (Annual Percentage Rate).
• Assess the Features: go into the details of the credit cards to see their special features, such as an automatic increase in your credit limit after on-time payments, no late fees for certain amounts, practical rewards, no expiration date on reward points, and an interest-free period.

You will be able to weed through so many useless options after you identify your preferred features according to your spending habits. Now that you've got some credit card options, it’s time to compare!

Now it comes down to the top choices of cards you picked, and you just want one. To choose the ultimate winner, you should ask yourself some of these questions:

For Secured Credit Cards

1. Does this help my credit score? Since some of the secured credit cards don’t report your spending to major credit bureaus, your secured credit card will be useless. If your goal is to only build a good credit score before getting an actual credit card.
2. Does the cost align with the benefits? Check the total cost of getting a secured credit card and the benefits you will be getting from it.
3. Will I be able to upgrade this card later? Make sure you can upgrade your secured credit card if you want to keep the same card for some reason. A long-running card will also help improve your credit score, so an upgrade will work right in your favour.

For balance transfer cards?

1. What is the lowest interest rate offered? It is crucial to know this detail because your aim should be to save on interest.
2. Does this card have balance transfer fees? Knowing you don’t end up paying more instead of saving is one of the most important aspects of getting a balance transfer credit card. So make sure the fees are also lower or nil.
3. Is there any reward for it? Your credit card should not be only for balance transfers; there must be a rewards programme attached to it so you can broaden your savings even when you are only paying bills.

For Reward Earning Cards

1. How am I spending my money? Discover your area of spending, the one category on which you majorly spend. It could be shopping, travelling, dining out, or enjoying entertainment. If you spend on a mix of these, consider choosing one that has a balanced reward distribution.
2. Do the benefits of rewards outweigh the costs? Weigh the benefits of rewards against the costs and choose a credit card with a low annual fee or waived fees for certain spending thresholds.
3. Is the interest rate too high? Ensure that the interest rate and associated fees and charges are considerably lower.
4. Will this require me to spend more to attain some rewards? ?Choose a credit card that aligns with your spending habits and rewards you for the purchases you are already making. Avoid reaching unrealistic milestones for minuscule rewards.

Remember, the best credit card for you may not be the one with the most popular reputation. By doing proper research and comparing the fine details, you can uncover hidden gems that perfectly suit your financial objectives.

Step 4 - Apply for your top choice credit card!

Congratulations! You've done your research, and now it's time to apply for your top-choice credit card. Start your application process here and follow the steps below!

• Apply for your preferred credit card by clicking Apply Now.
• Enter your mobile number and use the OTP to confirm.
• Provide personal and financial information, such as your employment details, income, and social security number.
• Hit Submit, and voila! Your credit card application is now in process.

Make sure to read the terms and conditions thoroughly before submitting your application. It's crucial to understand everything beforehand to avoid any surprises later on. Remember, applying for multiple credit cards simultaneously can negatively impact your credit score, so choose wisely and focus on applying for your top choice only, especially if this is your first credit card.

Finally, you have your best credit cards. Now, what?

Hopefully, by now, you have picked one that suits you and your spending habits after the last step! With your shiny new credit card in hand, it's time to put it to good use. Start by making small purchases and paying off the balance in full every month to build a positive credit history. Be mindful, maintain a good credit score, and keep these points in mind:

• Maximise your rewards: Understand redemption options and choose methods that align with your goals.
• Pay on time, every time: Avoid interest charges and late fees that can quickly negate your rewards.
• Keep your spending in check: Don't fall into the trap of overspending just to earn rewards.
• Monitor your account: Stay vigilant for fraudulent activity and report any suspicious charges immediately.

Remember, the journey to finding the best credit card doesn't end at the application stage. As your financial situation evolves, reevaluate your needs and consider if your current credit card is still the best fit. Don't hesitate to explore other options if they better align with your changing circumstances.

If you’re still confused about how to use your credit card in the best way, you can check out the details here.

Conclusion

Selecting the best credit card in India can be a straightforward and empowering process when you follow these four easy steps: checking your credit score, evaluating your needs, comparing options, and applying mindfully. This systematic approach allows you to confidently choose a credit card that aligns with your financial goals. So, embrace this exciting journey with assurance, knowing that by making informed decisions, you are set to enjoy the numerous benefits that responsible credit card usage brings. Your perfect credit card is just a few steps away, ready to enhance your financial journey!