How To Choose The Best Credit Card


Different types of credit cards offer you different benefits in terms of travel, shopping and more. While some are all-rounders, others belong to a specific category like sports or fuel credit cards, and you can choose one based on which one gives you the maximum advantage.


For example, a student credit card will suit you the most if you’re a student as it comes with low joining and annual fees and offers deals on laptops and educational courses. Selecting the right card can help you save more and avail of unique advantages that suit your lifestyle. 

Different Credit Card Types Available in India

The 8 categories of cards listed below are some of the prominent ones, but you can also find more in the financial marketplace. Compare their features and match them with your needs to make the best choice. 

Lifestyle Credit Cards

From entertainment to grocery shopping, these cards allow you to earn points and enjoy milestone benefits on spending over a specific limit. You can upgrade your life with them and save with a variety of offers across:

Shopping

Dining

Travel

Fuel

Movie tickets

Health and wellness


Other than this, you may get access to airport lounges and emergency insurance coverage. If you enjoy dining out, watching movies and travelling, they can be a perfect option as they usually have deals on all these expenses. 

Cashback Credit Cards

These cards help you earn an amount as cashback on almost every purchase you make. Its percentage can vary depending on the type of transaction you are doing. Using them, you can reduce your bills for the following:

Utility bill payments

Fuel

Dining, movies and other retail purchases

Grocery purchases


If you like immediate savings right when you swipe, such cards can be a boon for you. Check the cashback limits and specifications to make the most of them. You can also use such cards to transfer the balance of other credit cards and enjoy waivers on annual fees on crossing a certain spending threshold. 

Corporate Credit Cards

These business credit cards are meant for corporate employees to carry out expenditures related to work. These include travelling for conferences, meeting clients or vendors, arranging travel for clients, and more. 


It offers benefits like:

Cash advances

Reward points 

Insurance 

Lower forex charges 

Spend control and an expense management dashboard facilities 


They are a great option for companies to offer employees credit and have a record of usage. 

Reward Credit Cards

With these credit cards, you can earn reward points on most transactions. They usually have an extensive rewards programme, which helps you redeem points against:

Merchandise

Donations to charity

Air miles 

Gift vouchers 

Discounts on travel/retail spends 


You can also get accelerated rewards on certain categories like international travel or dining. Such cards help you get bonuses on joining, during your birthday, during renewal, and more. 

Travel Credit Cards

These provide rewards exclusive to travel such as:

Discounts or upgrades on hotel bookings

Free or discounted airline tickets

Complimentary airport/railway lounge access

Travel insurance

Accelerated points on travel-related purchases 


Some of these cards are co-branded cards offered by hotels and airlines partnering with banks. These cards may also offer fuel surcharge waivers, cashback and discounts on other spending categories. 

Flagship Credit Cards

These are signature credit cards offering premium lifestyle benefits. Some of them may have a stylish metal body for a luxurious look and feel. Some of their benefits include:

Airport lounge access

Fuel surcharge wavier 

Free golf lessons and green fee waivers 

Concierge services 

Global assistance services

Complimentary insurance

Free memberships to fine dine programs or airline loyalty programs


Such cards may have stringent eligibility terms, requiring a higher income and credit score. They may also come with higher joining fees or may be offered by invitation only. 

FD Credit Cards

Such cards are issued against a fixed deposit account that you can start with a bank offering the card. Your FD acts as your collateral, giving you access to a credit limit based on its value. You can avail of these credit cards with ease even if you: 

Do not have income proof or income stability 

Have a low credit score 

Do not have a stable job


Remember that the credit card company can liquidate your investment in case you do not pay your dues. However, this card can be a smart way for you to build your credit profile and score and qualify for a regular card over time. 

Fuel Credit Cards

If you are often on the road for work, holidays or in general, such cards can offer a lot of value. They may offer bonus reward points or give you cashback of up to 4% or more on fuel purchases. You may also get free fuel on joining. 


Sometimes, oil companies may collaborate with banks to offer such cards, in which case you get the maximum benefit on refuelling at specific fuel stations. You can redeem the points you earn on dining, entertainment, wellness and more. In addition, such cards may offer deals on other types of purchases. 


Keeping all these credit card types in mind, you can choose one that matches your purchase habits and needs. If you are looking for an all-rounder, consider the One Credit Card. Not only do you get instant approval online, but you also get 5X reward points on your top two spending categories each month, no matter what they are.


You can use the powerful One Credit Card mobile application to manage your savings more effectively and control all aspects of usage. In addition, you can save more with a wide range of discounts on shopping, dining, upskilling, rental payments and more.  Apply online to enjoy the benefits of this lifetime-free credit card!

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