The first and foremost question that comes to your mind when you go credit card shopping is “why do I actually need this card”? Well, would you feel better if we tell you that there is no rocket science behind this! If you are looking for the best credit cards in India, there is no better place to look at other than Online BFSI websites. You know why? Because you will find the best credit cards online and you are never going to get so many options at just one place across all categories from several banks and lending institutions.

Now, after you have decided on your purpose to buy the credit card of your choice, it is time to find the one that suits your lifestyle, has an affordable annual fee, can earn you rewards and cashback. How do you decide all this when you have so many different products to look at? You need to be an expert to realize what you need. So here are some questions you need to ask yourself before you start looking for the best credit cards online:

Why do you need a credit card?

So, if you do not have an answer to this question then what is the whole point of this, right? Now, after you have decided you need a credit card, you surely have decided what to do with it. Like if you are looking for a card for a generic purpose you would expect it to carry the lowest interest possible and the most number of rewards and cashback. On the other hand, if you are buying a credit card because you want to make a round trip around the world, then you would obviously look for free lounge access, waivers on ticket bookings, some extra miles(points) which you can use on your next booking and so on. The point is that the product must serve the purpose.

Have you monitored your spending habits?

While you are looking at various credit cards online, it is very important to consider your spending habits because after you have purchased the card, you’ll also have to pay an annual fee, so better make good use of it! You need to categorize your spending habits to make sure you are choosing the right thing for yourself. Some cards may offer you rewards and cash back, while others might offer you bonus points which you can use later for purchases.  Divide your expenses into the following categories to make things easier for you:

• Shopping & Lifestyle
• Fuel
• Travel
• Business
• Groceries
• Movies and entertainment
• Dining

Which category of rewards and cashback do you prefer?

You could be a shopaholic or an avid traveler or someone who makes big purchases for their businesses, every requirement can be met with a different card. Hence, it is important for you to identify the kind of rewards or cashbacks you desire. This decision will make it much easier for you to narrow down to the kind of credit card you want in your wallet.

Also Read: - Best Rewards Credit Cards Mar 2021

Types of Credit Cards:

1. Cashback & Rewards: These types of cards provide you rewards and cashback on purchases like clothing, groceries, fuel, travel, movies, and dining.

Citibank Cashback Credit Card

2. Business: These are corporate credit cards that are usually offered to corporate entities. These cards carry credit lines much higher than the personal credit cards offered to individuals.

3. Travel: A travel credit card is usually opted by those consumers who are frequent travelers. These cards offer travel points that you can use for ticket bookings, free lounge access, and fuel waivers in some cases.

Check Also: - Top Travel Rewards Credit Cards In Mar 2021

4. Fuel: These cards offer waivers on fuel, waivers on the surcharge, and cashback on usage at partner fuel pumps.

5. Student: These cards are offered to students who are in school and want to build relevant credit.

Factors Affecting choice

1. Joining Bonus: The first gift that a credit card usually offers is the joining bonus. This also depends on the type of card you are buying and from which bank you are buying from. Many cards carry a joining benefit on them, and some do not.

2. Rewards and cashback: This is the most attractive offer for consumers looking for a credit card. The purpose of purchase could vary but who does not love rewards and cashback for spending their own money?

3. Annual Fee: After you have made sure that you are entitled to rewards if you opt for a particular credit card.

4. Perks and Benefits: There are several perks associated with your credit cards such as free lounge access, bonuses, discounts, vouchers, and much more.

5. Other charges: Many credit cards carry hidden charges which you may not come across initially while buying the card but would be levied to your monthly statement. It is important to keep a track of those charges

6. Minimum payments: Last but not the least, it is important to know how much money you are required to pay each month.

Credit cards suit your wallet only when you have more money in your bank than your spending limit and to use it to its best potential it is important that you keep a 30% credit utilization ratio. If you can keep the credit line you use under control, then you know how to use the best credit cards in India. It is important that you keep track of your spending habits and use your credit card in a way that is financially healthy.