While selecting from different types of credit cards, choose one that suits your lifestyle and purchasing habits. Credit card companies provide a wide range of cards to select from. They can vary in terms of annual fees, rewards programs and more. Selecting one based on rewards and what you regularly spend on can help you maximise your savings.
Types of Credit Cards
Before selecting a card, analyse your spending habits. That can provide a basis for making an informed choice. For instance, say you plan to utilise a credit card for day-to-day expenses. In such a scenario, a card that gives rewards/cashback on the following can be helpful:
- Groceries shopping
- Entertainment, like movie tickets
- Rental payments
This way, you can make the most out of your card. Here are a few cards differentiated based on their reward programs:
Credit Cards with Lifestyle Benefits
Such cards can provide reward points and cashback on various expenses like grocery, fuel, travel, entertainment and more. Some issuers may give accelerated reward points on specific categories and a general discount on others.
These credit cards also provide gift vouchers and free access to airport or railway lounges while travelling. Check all the terms and conditions to get a complete picture of what aligns with your requirements.
Credit Cards with Travel Benefits
Selecting this specific credit card can exponentially bring down your travel costs. There are different kinds of perks they may offer, which include:
- Air miles, which you can redeem while booking flights or hotels
- Enhanced reward points specific to travel-related expenditure
- Redemption options related to hotel and flight bookings
- Insurance that can cover you for various travel-related incidents
- Memberships with partner airlines, hotels and more
By getting a proper overview of how the reward program is structured, you can decide how to utilise it in your favour.
Credit Card with Shopping Benefits
Issuers also offer credit cards specially designed for shopping benefits. Some may be related to specific merchants or brands. By spending beyond a set limit, you can access an enhanced reward program or vouchers.
Yet, it is important to consider these factors:
- Check if you regularly shop at specific retailers offering rewards
- Check if the minimum spending limit for discounts aligns with your purchases
Credit Card with Cashback Benefits
Many issuers offer cashback, where swiping your credit card gives you a refund of a small percentage of your spending. The percentage depends on the type of credit card you are using. Here are a few aspects you can consider:
- Check if the minimum spending amount matches your spending habits
- See which categories offer the maximum cashback to check your potential savings
- Read the terms to see if the cashback differs or is of a flat rate
Co-branded Credit Cards
Issuers collaborate with specific brands to create special cards to service your needs. For example, issuers collaborate with airline and travel portals to give you specific perks. You can get discounts while booking a flight or hotel room and so on.
These kinds of credit cards can be beneficial if you usually fly with the same airline or book trips on a specific portal. You may also get additional benefits such as excess luggage allowance, faster check-in, travel insurance, air lounge access and others.
Fuel Credit Cards
It provides rewards or cashback on fuel spending. Getting a fuel credit card can give you relief if you spend a considerable amount of your budget on refuelling. For instance, you can get 2-5% cashback on your fuel expenditure or can earn accelerated rewards on fuel payments.
You can redeem those points via vouchers, on bill payments, as statement credit and more. These credit cards may also collaborate with major fuel stations. Thanks to that, you can get more reward points while fuelling up at their petrol pumps.
Depending on the credit card, the eligibility requirements may vary. Some may have a high-income criterion, so check these before applying. You need to also check the issuer’s other facilities like a mobile app for easier management and access to quick services. For instance, having the facility to call a credit card blocking number to block your card in case your card is lost or stolen can be helpful.
While considering all the perks of these credit cards, keep other important factors in mind, too. Here are some of the major factors to check to keep your costs down:
- Interest rates
- Annual fees
- Joining fees
In your search for the ideal card, consider the One Credit Card, which has zero annual and joining fees. With it, you can access 5X monthly reward points on your top two spending categories each month.
Moreover, you can save more with a wide range of discounts on shopping, dining, upskilling, rental payments and more. Using the powerful One Credit Card mobile application, you can control and analyse all aspects of your spending. Download the app or visit the website and apply now to enjoy the benefits of this stylish metal credit card.
