Things You Should Know to Choose the Best Credit Card in India

best credit card in India

When trying to figure out which is the best credit card in India, you may be overwhelmed by the endless options available. However, choosing a card that suits your financial requirements is crucial. Understanding the terms and rewards is essential if you want to get the best credit card.

Since there’s no one-size-fits-all credit card, read on to arm yourself with the information you need to choose the card that gives you the most value. 

Factors to Consider When Choosing a Credit Card

While there are hundreds of cards available in the market, take these aspects into account to zero in on the best credit card in India:

Welcome Benefits

  • Certain credit card issuers offer welcome bonuses to woo potential customers.
  • You can enjoy these benefits as long as you make transactions within a specified timeframe.
  • These benefits may vary from bonus reward points to welcome gifts or shopping vouchers. So, compare cards and choose the one that offers something that excites you. 

Credit Score Requirements

  • A good credit score is essential for most premium cards that offer a range of discounts and offers. Check this requirement and ensure you match it before you apply.
  • If you do not qualify for a regular card, you can get a secured credit card against an FD instead. This card will allow you to build a credit score on regular bill payment. 

Interest Rates

  • Ideally, you must not carry forward your balance on a credit card as it will attract late fees and interest charges.
  • However, there may be times when you may have to delay your bill payment. So, always check the annual percentage rate (APR) on different credit cards. 

Other Charges

  • Credit cards also come with annual fees and other charges like joining fees, cash withdrawal fees and more. While some cards have high fees, others charge minimal fees or none at all. 
  • When selecting a card, check the charges to ensure it is pocket friendly. However, keep in mind that cards that come with low or no annual fees may offer fewer perks. 

Perks and Benefits

  • Review rewards programs, deals and cashback offered by different cards, as these depend on the type of card you choose.
  • Also, keep an eye on complimentary insurance and airport/train station lounge access as well as fuel surcharge waivers as they allow you to save more.
  • Lastly, see if you can get accelerated points when you shop from specific partners or in certain categories so you can stack up points quickly. 

How to Choose from Different Types of Credit Card

When trying to decide on the best credit card in India, first choose between the following types of credit cards:  

Business Credit Card

  • A business credit card can be a valuable spending tool if you are a business owner.
  • With this type of card, you can keep your business expenses separate from personal expenses and easily track them.
  • Some of these cards also offer generous travel and cashback benefits on business spending.
  • You can always opt for a credit card limit increase whenever your business operations expand.

Travel Credit Card

  • If you are a frequent flyer and hit by wanderlust, it makes perfect sense to apply for a travel credit card.
  • These are generally co-branded cards that link you with selected airline or hotel loyalty programs.
  • They come with a “pay with points” feature, allowing you to redeem points to enjoy discounts on your air tickets or hotel stays. 

Cashback Card Credit Card

  • Cashback credit cards work on a simple model – they let you claim rewards for every purchase that you make.
  • Some of these cards allow you to avail of a flat cashback rate on all purchases, helping you easily track your rewards.
  • On the other hand, certain credit cards are tied with specific brands and provide higher cashback when you purchase from their stores. 

Balance Transfer Card:

  • A balance transfer card can be the perfect choice if you have an existing loan with a higher interest rate.
  • With a lower promotional rate, you can quickly pay off your existing debt while bringing your cost of borrowing down.
  • When choosing such a card, you must factor in the APR, the timeframe for the promotional rate, and the balance transfer fee.
  • These cards can come in handy if you clear your earlier debt before the variable APR kicks in after the intro period. 

If you are looking for a perfect credit card, think about how you use it, what kind of purchases you will make, and the benefits you want. Some credit cards allow you to convert expenses into EMIs; others help you pay your rent seamlessly. A few of them also have mobile applications to let you control all card functions. 

However, certain credit cards give you all these benefits in one place. Apply for the One Credit Card to explore 5X rewards, fuel surcharge waivers, no joining and annual fees, and over 80+ discount offers. 

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