There are plenty of Credit cards available these days. Whatever your requirements and spending habits are, there will be a credit card for that. So, the question that prevails is How can you infer which Credit Card is best for you? Easy, there is a necessity to compare credit cards wisely to know which one to go for!
Let us look at certain Tips to compare credit cards wisely:
- Compare the Category: You need to know your spending and financial habits and then compare the vast category available for credit cards. One of the best ways to compare credit cards is to first know why you need a Credit Card? Is it because you:
- Travel frequently? Look for Credit cards that offer miles and travel-related reward points.
- Want to save on your everyday purchases? Look for the Lifestyle Credit Card Category.
- Want to Convert big payments into Small EMIs? Look for Credit Cards that provide a Smart EMI option for the concerned category.
The bottom line is you need to ascertain your need and spending habits and then compare the type of Credit Cards.
- Compare Reward Programs: Different Credit Cards offer different Reward Programmes and that is why it is one of the most essential steps to compare the Reward Program of the Cards. The points earned can then be exchanged for valuable items and privileges. But you need to make sure which reward program is worth it. For example: getting air miles might not make sense if you do not travel often.
- Compare the Fees with Return on the card: Every credit card is subject to certain fees. One should make sure that the return on the Credit card in terms of rewards, cashback, etc. is more than the cost of the Card. The comparison of both the factors is utterly necessary.
- Compare the limits and Caps: Apart from the obvious credit card spending limit there are certain other limitations as well like the offer expiration period. For Example, Some credit cards provide offers that may have a short expiration period while some others do not have any expiration date at all.
- Compare credit cards online: Nowadays there are many websites where you can compare Credit cards easily on many different bases, all at once. It only requires the name of the cards to start the comparison. It can save some manual effort and a lot of time as well.
- Compare Interest rate: There are two things one needs to check for, one is the rate of interest that different cards have and the second is the interest-free period. Depending on the date of the expense about the monthly credit card bill creation date, the interest-free period might be up to 50-55 days. Both the factors should be compared thoroughly.
Additional Reading – How To Keep Your Credit Card Safe