The availability, features and benefits of many credit cards in India can cloud your decision while choosing a credit card. Hence, it is advised that you consider your spending habits or requirements and then choose one. The next section outlines 5 steps that will help you choose the right credit card.

The first step: Determine the purpose of obtaining the credit card

You first need to decide why you should get a credit card, build good credit, pay your monthly bills, or just shop online? Different credit cards have their own advantages and are designed for different purposes. Therefore, knowing your purpose ahead of time will help you choose the credit card that best suits your needs

The second step: Features and Benefits You'd Expect

Each credit card has its advantages or incentives. Here is a list of benefits to help meet your financial needs.

- Bonus points on transactions.

- Cash back on purchases.

- Sign up for Easy EMIs.

- Free travel insurance.

- Air miles.

- Safe and secure online shopping.

- Builds your credit score.

- Works in any currency.

The third step: Check the terms and conditions carefully.

If you're planning to buy a credit card, it's not enough to know the benefits. Make sure you read the terms and conditions carefully and not feel bad about any future penalties or charges.

The fourth step: The interest rates.

Interest rates can be important when purchasing a credit card. Every credit card has an interest rate, also known as the annual percentage rate (APR). It applies if you have a balance. Your bank's interest rate may be fixed or variable. The Bank will notify you of any changes.

The fifth step: How much are you willing to pay?

Each credit card has different plans and fees. Generally, you must pay an annual fee. It might be worth it if you get enough incentives to offset the cost. Some creditors may waive annual fees if you are able to make the bare minimum.

If you have unpaid amounts after the due date, then you will be charged interest and late fees. If you use your card abroad, you may be charged foreign transaction fees. Also, your bank may charge you if you exceed your credit limit. To avoid this, ask your bank to exceed your card limit based on your monthly spending.