Choosing the perfect credit card is highly crucial as it’s one of the key factors that’d determine your monthly savings. However, this could be tricky sometimes. More often, we fall prey to some zero joining fee credit card offer and end up picking a card we absolutely do not need. Before choosing a credit card one must remember that every card is personalised for someone. In this post, I’m not going to list down the top credit cards but rather try to teach you, how to choose the best credit card for yourself. I’ll be mainly elaborating on the factors one should consider while picking the right card.
HOW TO CHOOSE THE BEST CREDIT CARD FOR YOU?
STEP 1: Identify which category (from amongst shopping, utility bill payments, travel, entertainment) are your max spends from in a month.
STEP 2: Shortlist cards (that lie within your income eligibility range) that let you earn/redeem rewards/miles from that respective spend category.
STEP 3: Do a comparative analysis of direct savings on all the shortlisted cards.
STEP 4: You have your winner. Now all you’ve got to do is APPLY!
Things To Consider For Choosing The Perfect Credit Card:
Choice of card:
Evaluating the Fees:
Spends to Rewards Ratio:
Cost to Savings Ratio:
I’ve done a sample study of the Amex Gold Credit Card here for reference:
Thus, % Savings: 13.5%, which is not bad at all!
Credit Card Issuing Company:
As you may be already aware there are various credit card providers such as AMEX, Mastercard, VISA, etc. Depending on where you do a majority of your transactions, you could go for either of these. If you’re a globetrotter you’re probably looking for a Mastercard or AMEX. If you travel to tier II cities in India you should go for a VISA as their domestic coverage is a lot wider.
While choosing the credit card company, make sure to quickly look-up if they offer complimentary airport lounge visits at cities you frequently travel to. Most of them do and I must say they’re every bit worth reaching the airport early for.
CC companies also offer their own exclusively curated dining, travel, entertainment, retail offers (these aren’t usually bank specific). Maybe, you’d wanna look up which of these three CC companies offer discounts in the eateries around the corner, or at the cinema hall closest to your place.
Look out for offers that you think you’d definitely use on a regular basis. These can be offers related to movie tickets, groceries, online shopping sites.
For example, ICICI Coral (and above) credit cards offer Buy 1 Get 1 on Bookmyshow for 2 tickets worth 250/- in a month. That’s a straight saving of 6000 bucks in a year as I’m sure we hit the theatres at least once a month.