The guide to choosing the right credit card in 2022


In the present era, credit cards are the most popular and effortless mode of payment. These cards help one in bettering their credit score. It also urges one to spend wisely and also make payments before the due date. Credit card users can also avail themselves of various discounts, cashback offers and lucrative deals.

With credit cards, one can purchase expensive goods. The payment for these goods can be made in installments. Credit cards online can also be used to make online payments. Credit cards can also be used in emergencies. Credit card users are offered other deals as well, such as interest-free periods of up to 45 days. These cards are used in making trouble-free transactions. They can be used to make all types of payments offline and online.

As various credit cards are available to customers, one must compare credit cards and select the one that best suits their needs.

One can select the type of credit card based on the following factors:

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  • The Customer’s lifestyle: Credit cards are used as a convenient mode of payment and are also a part of some people’s lifestyles. One needs to select the right credit card to avail of all the features offered by it. The credit card must also suit the spending pattern of the person. Several banks offer different credit cards which fit the spending patterns of customers, like credit cards online. One must also choose a credit card that offers maximum rewards.

For instance, if one is a high spender, they can consider a card that offers lounge access, free gold games and dining utilities. Some credit cards also offer bonuses on flight fares.

  • Credit Card Rewards: There are categories of credit card rewards: miles, points, and cash-back. One must compare credit cards based on these categories and select the one that applied to their interest or spending pattern. Credit cards accrue rewards as rewards points or miles. These rewards are then applied to the credit card statements depending on the category.

If one selects an air miles credit card and makes frequent online or retail purchases but travels rarely, the points on the credit card are not utilized. This happens as the card gives minimum miles on retail purchases but bonus points on flight bookings. The miles on the credit card would not accumulate enough for a free air ticket. Hence, the credit card points are not availed completely.

  • Credit Limit: Different credit cards have varied limits. This limit is determined based on the income of the individual. Hence, one must contact the respective bank and ask for the maximum credit limit they can avail of according to their income. One must compare credit cards based on whether they are co-branded or not. If one has a good level of engagement with the tied-up brand, they can opt for co-branded credit cards.

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  • Annual Fee and Charges: One needs to check the annual fees and renewal fees while selecting their credit card. The waiving off criteria of the annual fees and renewal fees must also be looked into. Usually, the waiving off of fees depends on the expenditure pattern of customers. Therefore, one must compare credit cards and choose the best fit after analyzing their expenses.

Other charges included are Late Payment Charges, cash Advance Fees, GST, Foreign Currency Mark-up Fees, Cash Withdrawal Charges, Mobile Alert Charges, Rate of Interest Charged on the Balance Amount, Balance Enquiry Charges, Duplicate Statement Charges.

  • Credit Score: A credit card application is approved only if the credit score of the individual is secure. It also depends on the income and occupation of the applicant. Every bank has different parameters to consider while accepting credit card applications. Usually, people with a credit score of more than 750 can get their application approved easily.
  • Finance Charges: Most credit card companies apply finance charges on the non-payment or part-payment of the outstanding credit card balance. This charge is also levied on cash withdrawals. The finance charge applied can range between 30%-42% per annum. One must also consider these charges while applying for their credit card.

Therefore, one must analyze these factors and the specific requirements for a credit card and then check the credit card’s specifications. One can also register for credit cards online through the respective bank’s website.