Guidelines to choosing the right credit card online

credit card
credit card

Credit cards have become indispensable for the modern consumer because of their payment habits. Today, we see a large number of people — in India and worldwide — relying heavily on credit cards. Here may be a basic guideline that assist you to urge started with understanding mastercard and their types.

There is a wide spectrum of choices available in credit card apply online. While it’s easy to urge overwhelmed with the variability of features, rewards, and payment types, the proper choice in selecting a mastercard can go an extended way in securing your financial safety.

Here may be a basic guideline that assist you to urge started with understanding mastercard and their types.

Before you apply for a CC, you must consider these four aspects: how the card suits your lifestyle; what are the features that make the card special; what is the card’s credit limit; and what are the charges and fees associated with the credit card.

Does it suit your lifestyle?

This is an important question to ask yourself before applying for a CC,. Your spending pattern, expenses, and usage of the card rely heavily on your lifestyle.

If you are a salaried middle-income individual who has a regular lifestyle, a credit card based on points or cashback offers can be good for you.

These provide cashback offers for elevated cases of utility, something that remains very attractive amongst middle-income Indians.

Alternatively, if your work involves heavy travel and frequent flying, there are credit cards that cater exclusively to that as well.

Invest in a card that offers airport lounge services, flying miles, priority boarding, and complimentary stay in hotels attached to airports.

If you’re someone that likes to socializeIf you’re someone that likes to socialize, dine out and entertain regularly, a card that gives customized entertainment benefits is that the right fit you

This will give you access to discounts and cashback at restaurants, theatres, and shopping houses, making your leisure experience even more exciting.

What kind of features does it have?

This is the chief differentiating factor amongst different credit cards.

Some cards have an automatic utility bill payment, a mechanism where money is transferred automatically on a scheduled date for recurring payments like rent, electricity, or mortgage.

Other cards have a simple EMI system that permits quick and hassle-free monthly EMI payments.

Additionally, you can also find cards that offer an insurance cover, fuel surcharge waiver, and zero liability on lost or stolen cards.

While these offers are attractive, it is also important to not go overboard, and only bring home a card that falls well within your income limits.

What is its credit limit?

The credit limit is an important financial indicator on your card.

It is the purchase limit set by the CC,company on the user of the credit card.

This limit is usually dependent on your level of income and your creditworthiness. Different cards offer different credit limits. As credit cards are a highly flexible tool of payment, you run a risk of overspending each month.

If the credit limit is higher than what your income can sustain, you’ll end up spending more than your prescribed expense bracket, and fall into a debt trap. While choosing your CC,, ensure that your credit limit is viable and protects your financial health.

How much do you want to pay for your credit card?

The costs associated with a CC,are another metric that you must consider.

There is some an annual maintenance fee that has got to be paid, regardless of your card usage.

Apart from that, there are minimum spends that have to be paid based on your monthly card bill

. This minimum amount due every month is usually about 5% of your total outstanding amount.

If you pay only the minimum amount each month, then an interest rate averaging at about 3-4% is charged on the remaining amount of your bill.

Failure to pay even the minimum amount will attract late payment fees and penalties that can prove to be costly.

Apart from that, there is a certain cash withdrawal fee that is imposed when you withdraw money from the ATM with your credit card.

Finally, the bank or the CC, company that issues the card also has certain financial charges attached to it. Factor each of these costs into your decision, weigh them against your financial ability, and make a choice.


A credit card is a very useful financial tool, but applying for the right card is the first step to having a healthy and safe financial experience. After answering the aforementioned four questions, you will be able to narrow down to a few options. Compare amongst those and make an informed choice before you apply for a new credit card.