Top 3 Factors To Consider While Choosing The Right Credit Card
A Credit Card offers a world of benefits and choosing the right card can make your financial life so much simpler.
Read our guide to choosing the right Credit Card.
What is your lifestyle?
Credit Cards are not just a convenient financial tool but also a lifestyle accessory.
For instance, if you are a frequent flyer, you can opt for a co-branded airline Credit Card like the 6E Rewards XL – IndiGo HDFC Bank Credit Card. Such a card will make your travel smoother and more comfortable with benefits like free lounge access, priority check-in, complimentary flight tickets*, etc. You also stand to earn rewards that you can convert to book flights at discounted prices or for free.
If you tend to entertain, eat out or socialise regularly, opt for a card that offers a better dining experience and greater rewards and discounts at restaurants.
If you haven’t used a Credit Card before, you can start out with something simple, such as the Millennia Credit Card from HDFC Bank. It is a cashback type Credit Card where you can earn cashback (in the form of Cash Points) for various purchases. You can redeem these cash points into brand vouchers or statement credit. The Card also offers complimentary access to airport lounges, dining privileges, etc., making it a potentially ideal choice for beginners. Plus, you can conveniently manage the Credit Card via portals like Net Banking, MyCards, mobile banking, etc.
Choose a Credit Card that suits your lifestyle and offers you the maximum rewards and benefits for the kind of activities you indulge in frequently.
HDFC Bank has a wide range of co-branded and specialised cards that are tailored for different lifestyle needs.
What features do you want?
Credit Cards come with a slew of features that can make your life easier. For example, many HDFC Bank Credit Cards offer features such as automated utility bill payment, Easy EMI, welcome bonuses, zero liability on lost or stolen cards, fuel surcharge waiver and insurance cover. So, compare the features between cards before you choose one.
How much are you willing to pay?
What does your credit card cost? Compare the different charges among cards:
Annual fees: Most cards charge an annual fee, but waive it off if you achieve minimum spends
Finance charges: Banks will charge you an interest when you use revolving credit (carrying your outstanding amount beyond your due date)
Late payment and over-limit fee: If you settle your outstanding after the due date or spend over your credit limit, the bank may charge you a late payment fee.
Cash withdrawal fee: Withdrawing money from an ATM with your Credit Card attracts charges and interest.
All cards come with monthly credit limits. If you plan to use your card extensively for travel, dining and entertainment, you might want to opt for one with higher credit limits.
If you use your card infrequently, choose a card with a lower credit limits.
Now that you are aware of how to choose the right Credit Card, read more on how to use the Credit Card wisely.
Do you want to apply for a Credit Card? Click here to know your options!
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circ*mstances. Credit Card approvals at the sole discretion of HDFC Bank Limited. Credit Card approvals is subject to documentation and verification as per Bank's requirement. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.
FAQs
Factors To Consider When Choosing a Credit Card
- Welcome Bonuses. Many credit cards come with welcome bonuses to entice potential new customers. ...
- Rewards. ...
- Perks and Benefits. ...
- Annual Fees. ...
- Interest Rates.
Consider bonus categories for rewards cards, length of intro period for 0% APR cards and credit tools for cards that help you build credit. Plus don't forget to factor in fees and interest rates into your decision. That includes annual fees, foreign transaction fees late payment fees and APRs.
Which bank is easier to get a credit card from? ›
Comparing the easiest cards to get
| Card Name | Annual fee | FICO score required |
|---|
| Bank of America® Unlimited Cash Rewards Secured credit card | $0 | No credit history |
| Capital One Platinum Secured Credit Card | $0 | No credit history |
| Indigo® Mastercard® | $0-$99 depending on creditworthiness | 300 to 670 |
| Capital One Platinum Credit Card | $0 | 580 to 740 |
3 more rowsJun 28, 2024
Here's a checklist of some things to look at when you choose a credit card:
- Annual Percentage Rate (APR). This is the cost of borrowing on the card, if you don't pay the whole balance off each month. ...
- minimum repayment. ...
- annual fee. ...
- charges. ...
- introductory interest rates. ...
- loyalty points or rewards. ...
- cash back.
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- Identify the right account.
- Look for banks that charge low or no fees.
- Consider the convenience of a local branch.
- Take a look at credit unions.
- Find a bank that supports your lifestyle.
- Examine digital features.
- Understand the terms and conditions.
- Read reviews for banks you're considering.
Bankrate's best online banks of 2024
- Best online bank: EverBank.
- Top online bank: Quontic.
- Top online bank: Ally.
- Top online bank: LendingClub.
- Top online bank: Discover.
- Top online bank: Bank5 Connect.
- Top online bank: SoFi.
- Top online bank: American Express.
If you're approved for an American Express Card, and you're eligible, you'll be invited to get your Card number instantly. number to your digital wallet1 or shop online before your Card arrives in the mail.
Which bank provides credit cards easily? ›
Leading credit card issuers in India like HDFC Bank, SBI Card, Axis Bank, IndusInd Bank and Standard Chartered Bank offer a number of cards, each catering to unique individual needs like fuel, online shopping, dining, movies, groceries, or a mix of all. Before choosing a card, you must compare the available options.
What bank is the hardest to get a credit card from? ›
Centurion® Card from American Express
A rating of 5 is the best a card can receive. Why it's one of the hardest credit cards to get: The hardest credit card to get is the American Express Centurion Card. Known simply as the “Black Card,” you need an invitation to get Amex Centurion.
Which to choose Visa or Mastercard? ›
Benefits comparison: Visa vs. Mastercard. On entry level cards, there is very little difference between Visa and Mastercard, as both provide a similar suite of basic features. However, Mastercard includes impressive special luxury offers on its World and World Elite level cards, which can be attractive for big spenders ...
A good credit card APR is a rate that's at or below the national average, which currently sits above 20 percent. While there are credit cards with APRs below 10 percent, they are most often found at credit unions or small local banks. If you don't have good credit, you're likely to receive a higher credit card APR.
What is the best type of credit card? ›
Rewards credit cards are best for everyday purchases, earning you cash back or points on your spending. Travel credit cards are a solid fit for frequent travelers and include co-branded airline and hotel cards. For those new to credit, a secured or student credit card can be a useful tool to build your credit score.
Which bank provides credit card easily? ›
Leading credit card issuers in India like HDFC Bank, SBI Card, Axis Bank, IndusInd Bank and Standard Chartered Bank offer a number of cards, each catering to unique individual needs like fuel, online shopping, dining, movies, groceries, or a mix of all. Before choosing a card, you must compare the available options.
Does it matter what bank you choose? ›
The three most important factors when choosing a bank for checking and savings accounts are the type of bank, the interest rates it pays, the fees it charges, and the extra features it offers.
Should my credit cards be from different banks? ›
If you stick with one card issuer, you may miss out on the different features, benefits and partner relationships that other card issuers offer their cardmembers. Make sure you don't have two cards with a lot of overlapping benefits. To maximize the perks, you may want two cards that cover a diverse array of features.
Is it better to go into a bank for a credit card? ›
Bank cards tend to be a better option for everyday expenses but could also have a few drawbacks. Pros: Typically, lower interest rates and higher credit limits. Robust fraud protection.
