How to Choose the Right Credit Card for You

Did you know that in the US, more than 70% of consumers, of a total of 248 million adults, had at least one credit card in 2015? According to data published by, credit cards are a common possession found in most American wallets, given that most people tend to encounter a cash crunch at some point of their life. It was also added that up to the mid of 2016, another 10 million Americans purchased a credit card for themselves.

So, if you too are looking for a credit card and are wondering which one you should get, here are a few questions you should seek to answer:

  • What is my spending pattern?
  • Why do I need a credit card?
  • Why is this credit card better than other options?
  • What kind of rewards I am looking for?
  • How long will is the 0% APR period and what will be the ongoing APR?

Answering these questions will narrow down your choices and help you choose the best credit card, depending on your spending habits.

Here’s a look at the major types of credit cards from which you can make a choice.

Types of Credit Cards

Let’s look at the different type of credit cards you can choose from in India.

Standard Credit Cards

Most easy card to understand, the standard version no frills or rewards offered. Cardholders are allowed to have a revolving balance up to a certain credit limit. The credit is restored when you make the payment. The cardholder needs to, however, pay a finance charge on the outstanding balance at the end of each month.

Check out: Best credit cards in India

Who should Buy: This is the best choice for those who like to keep things simple for themselves.

Balance Transfer Credit Cards

This is a facility offered by various credit card providers, allowing the cardholder to transfer their outstanding credit balance from a different credit card, issued by a another provider, to a balance transfer credit card charging a lower interest.

Who should Buy: Reducing the interest that a cardholder pays on the total credit, a balance transfer credit card can help you save money.

Cashback Cards

This is a reward-based card, which pays back a percentage of the amount spent by the cardholder on any purchase made through the card.

Who Should Buy: This is a judicious choice for consumers who prefer to clear payments on their credit card on a monthly basis.

Travel Credit Cards

With a travel credit card, the cardholder earns credit card miles on every purchase. When the credit miles amount to a certain number, they can redeem those miles for a travel purchase using the card, such as flight bookings.

Who Should Buy: If you travel a lot, a travel credit card is worth possessing.

Charge Credit Cards

Unlike standard credit cards, the buyer need not to pay any interest on their spending, but is required to pay the balance in full upon receipt of the statement. The payment is made on a monthly basis. A major difference that makes the charge credit card a lucrative option is the higher and, sometimes, unlimited spending allowance.

Who Should Buy: This credit card doesn’t allow you to roll over your balance from month to month, which is a good thing in a sense, since the cardholders won’t have to worry about paying interest on their balance.

Use the above mentioned information to choose the card best suited to your needs and spending patterns.

Also read: Best credit cards when traveling from India to USA and Best credit cards for Online Shopping in India.

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Mani Karthik

About the Author

Mani Karthik

Entrepreneur, Mentor & Blogger.
I help business grow & scale. Have helped 15+ companies scale in US, Middle East and India.
I share everything I learned on this blog, so that you benefit. Here’s more about me.

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