How to Choose the Right Credit Card?

Credit card companies try to attract people by offering various confusing joining benefits and co-branded deals.

That's why you need to be smart about which ones work best for you, as your card usage should be aligned with your spending habit.

Here are some tips that will help you make the right choice.

1. If you're just starting and you think that your credit card usage will be low, opt for a card that has zero annual fees and a low-interest rate.

Such cards will offer you an additional mode of payment, other than cash and UPI payments, while also helping you build your credit score.

Instead of focusing on joining offers or a jumble of reward points, choose a card that offers cashback as a reward.

This will allow you to convert your accumulated points into cash, which you can use to pay off your credit card bill.

2. If you've been using credit cards before and you feel comfortable swiping your card, you could go for three different cards.

One should be a card that offers you a waiver on fuel surcharges or accelerated points on fuel usage.

The other two can be singular or co-branded cards that offer you discounts on grocery shopping, online shopping or dining, depending on what you spend most on.

3. If you use your credit card very frequently, you can even opt for a premium card that charges a joining or annual fee.

This could be more beneficial as these cards offer accelerated reward points, such as 5 reward points on spending 100 rather than just 2 points offered by basic cards.

They also offer you superior benefits like access to airport lounges, Priority Pass memberships, a low foreign currency markup fee of only 2%, etc.

Full article: Economic Times