Choosing a credit card can be a daunting task in itself. There are so many options with different perks and offers, all promising the best of the lot. ” According to SoFi professionals, “Consider your preferred features, credit score and spending habits.” But how do you know which one is right for your needs? Find out below:
Are you a student?
If you’re a student, a student credit card is probably the best way to build your credit history. Your chances of being approved for a prime card are low and interest rates will be higher than average, but student cards are typically easier to get than other types of cards. Plus, they come with many perks:
- Low limits (about $500-$1,000)
- Low-interest rates (usually 10-20% APR)
- No annual fees (if any fees exist at all)
- Rewards programs reward spending in specific categories or on particular purchases like gas and dining out; some even offer cashback rewards for no additional cost!
How do you spend your money?
It’s important to understand how you spend your money because the type of card that’s best for you will depend on your personal spending habits.
For example, if you’re a big traveler, then having a card with no foreign transaction fees and generous rewards might be ideal. So if you’re more of an entertainment buff who likes to go out for dinner and drinks, then a credit card with an intro APR period could be better suited for your needs.
Are you a frequent traveler?
If you’re a frequent traveler, you can get a credit card that offers reward points for every Rs. 100 spent or one that offers reward points for every Rs. 1,000 spent (the higher the amount of money spent with your card, the more points you get).
Reward schemes vary from bank to bank and there are also different kinds of rewards: some offer free flights or hotel stays; others give discounts on goods purchased online at specific websites such as Amazon and Snapdeal.
For example, if you’re looking for a travel-related credit card with fewer frills but no annual fees attached (and if your goal is simply to earn miles), then Capital One’s Venture Visa makes a good option because it doesn’t charge any annual fees either.
Do you prefer cashback offers or rewards points?
Cashback credit cards offer the most flexibility in terms of redemption. You can use your rewards to buy anything you want, including cash or gift cards. Rewards points, on the other hand, are usually only redeemable for specific items or experiences such as travel and dining. The best type of card for you will depend on how you plan to use it and where your spending habits lie.
Is interest-free EMIs an option for your spends?
If you are a student, then you may be eligible for interest-free EMIs on your credit card spending. This is especially true if you have been lucky enough to get a credit card with an introductory offer period of zero percent interest on all your spending.
If so, consider applying for such offers as they can help build your credit score while also providing some convenience in terms of making payments.
In the end, it’s all about finding the right credit card for your needs. If you want to find out more about how to choose a credit card, visit other online websites which can help you find the best option for your financial situation.