How to Compare Credit Cards and Choose the Right One for You

If you are struggling to choose the right credit card, you are not alone. Many people go through the same dilemma while choosing their first card. The wisest way out is to read reviews and compare credit cards before making your final selection. 

Many options may seem similar, but they’re not. Take your time to understand the benefits and drawbacks of each card. A little research in the beginning can save you money and stress in the future.

Identify Your Credit Card Requirements

Before diving into the world of plastic money, take a moment and think about what you really need. Defining your needs narrows your options and it also makes the whole process way easier.

• Assess Your Spending Habits

Categorise your expenses to understand where your money is being spent the most, whether it is travel, groceries, fuel, eating out, or shopping online. 

• Determine Your Repayment Capacity

Your next move is to calculate your debt-to-income ratio. Add up all your monthly payments, including EMI, bills, rent, daily essentials, etc. and deduct the amount from your monthly income. This will help you understand whether you will be able to manage your card while maintaining your budget. 

Try not to think of the card as an additional expense. Instead, plug your daily expenses into the card and set your budget for card usage.

• Identify Benefits and Rewards

There are various types of credit cards, each with its own unique reward structure. Some credit cards offer cashback like One Card, while others provide exclusive privileges and air miles or points. Based on your preferences, analyse their rewards to identify the card that best aligns with your needs, whether it's:

• Cashback
• Reward Points
• Travel Miles
• Dining Offers
• Discounts

Keep your goals in mind, and then compare credit cards, review their offers, and select the one that benefits you the most.

Key Factors to Compare When Choosing a Credit Card

While considering the advantages of a card, you should also understand the fees and other costs associated with it, such as:

• Interest rates and APR (Annual Percentage Rate)
• Annual fees and joining charges
• Cash withdrawal limits
• Rewards redemption charges

How to Research and Compare Cards

Any savvy credit card user will tell you not to grab the first card you see. Instead, you should do your research by using the following tips to find the card best suited for you:

• Use online comparison platforms
• Shortlist cards as per your eligibility
• Read reviews and testimonials

Before making your final selection, list the pros and cons of each card you are considering. Create a checklist to compare the features of different cards, as this can help you make a well-informed final decision. 

Understand Credit Scores and Eligibility

Your credit score plays a crucial role in the approval process for a credit card. However, you also need to understand the complete eligibility criteria for the card you’re applying:

• Minimum Age: 18 years old or older 
• Nationality: Indian 
• Income: Proof of a stable monthly income
• Employment Status: Salaried or Self-employed
• Credit Score: A score above 720 increases the chances of approval

Remember, some premium cards may require a higher credit score and a minimum annual income for you to meet. So, checking the eligibility terms before you apply is important. 

Select a Card and Submit Your Application

While offline applications are available for all credit card companies, you may prefer the convenience of the online application process. To complete your application, ensure you provide all the required information and furnish the necessary documents. 

Typically, you'll need to submit:

• Identity proof (such as Aadhaar card, passport, etc)
• Address proof (such as driving licence, voter ID, passport, etc)
• Income proof (such as bank statements)
• Photographs
• Signature proof (if required)

Choosing the right credit card requires effort, so take the time to compare different options. If you’re seeking flexibility and rewards, consider the One Credit Card, which offers 5X reward points on your top two spending categories each month.

You can use the GPS tracker on its OneCard App to find the best deals around you. This will not only ease your everyday purchases but will also help you to maximise your savings. 

Additionally, the app makes it easy to redeem your points. The card also lets you include your family members with add-on cards and offers no-cost EMI so that you can pay big bills with ease. To enjoy all the benefits of this instant credit card, apply now.