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How to choose a credit card to suit your lifestyle?
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How to choose a credit card to suit your lifestyle?

With a plethora of credit cards available in the market, you may get a little confused about which one to opt for. Here are some basic indicators to help you choose a credit card. The rule of thumb is to select a card that will suit your lifestyle and spending patterns.

Are you a frequent traveller? Choose a card that offers free air miles based on the amount you spend on your card. If you like to drive around, get a fuel card that waives the surcharge when you buy fuel. Are you an emergency-only credit card user? Consider a card with no annual fee. As with any financial services product, you need to research the various cards to see which best suits your priorities and lifestyle.

There are 3 main aspects to consider when going for a credit card.

1. Your spending pattern

What are your monthly spends? How do you spend? What do you spend them on? These questions will help you decide the credit card you should be opting for. If you spend a lot on dining or leisure, then choose a card that offers perks like free movie tickets or discounts at restaurants. If you are a heavy online shopper, then opt for a card that offers rewards for shopping.

2. Interest rates

How would you like to make your card payments? Will you pay off your balance, or will you carry over a balance from month to month? Some credit cards come packed with great perks and privileges, but the high interest charges on the balance wipe out all of the positives. It does not apply if you pay off your balance regularly.

3. Annual and renewal charges

Some credit cards offer best-in-class advantages and benefits, but the annual fee, renewal fee and other assorted charges may be high. So even if a credit card offer looks tempting, be sure to check the annual rate and renewal charges.

There are different kinds of cards to suit your every need. Let’s look at the type of card and the benefit that accrues to you when you use it.

Travel cards

Do you fly often? Travel credit cards are specially designed to help avid travellers get discounts in flying and at hotels. Many travel cards let you earn air travel, travel upgrades, cruises or vacations. You may also get complimentary travel and car-rental insurance and other travel-related perks. What’s more, you can also enjoy a relaxing time at the airport lounges.

Shopping cards for the shopaholics

Shopping cards come in 2 types: Cashback Cards and Reward Cards. Do you plan to use your card for everyday purchases? If so, consider a rewards credit card that lets you earn rewards for your purchases to use toward cash back, gift cards or other benefits based on how much you spend.

Fuel cards

For people who travel by their own vehicles, saving money on fuel is a priority. With a fuel card you can accumulate points on fuel buys, just like the reward cards offer. Some fuel cards also offer upfront cash back.

Know how to assess your personal spending and lifestyle needs and learn more about credit card categories. You will then be well-equipped to find the right credit card to suit your lifestyle.