How to choose the right credit card for your lifestyle? Make note of these 6 key points

Amid plenty of options to choose from, it is common to get spoilt for choice when it comes to credit cards. For different people, there are different reasons to pick a card. Some cardholders want a card for lifestyle benefits while others opt for a card for cashbacks.

Therefore, choosing the right credit card for you is dependent on your lifestyle which includes spending habits, future goals, and personal preferences.

Checklist to help you pick the best card

1. Check your spending habits: First you need to look at your monthly expenses to identify where you spend the most. It could be, for instance, groceries, and eating out. You may consider a cashback card. On the other hand, if you spend on travel (including flights and hotels), you may consider applying for travel rewards cards. At the same time, if you are too inclined to online shopping or specific retailers, you can opt for co-branded cards.

2. What is your key goal: Another thing to ask is what exactly do you want from a credit card. Whether it is cashback, balance transfer or to build credit. Cashback refers to simple rewards for everyday spending whereas travel rewards give you points or miles to redeem for flights and hotels. At the same time, balance transfer entails zero per cent APR offers to clear off debt. Some cardholders tend to build credit by using secured or student cards if they are starting out.

3. Check fees and interest rates: You need to check the annual fee to make sure the rewards rationalise the cost. One should also check the APR (annual percentage rate) if you do not clear your balance in full. Additionally, you can check foreign transaction fees if you travel abroad frequently.

4. Look for welcome bonuses: Several cards offer a sign-up bonus if you spend a certain amount in the first few months. You can make sure that you meet the spending requirement without having to overspend.

5. Perks and benefits: Different perks and benefits include airport lounge access, travel insurance or purchase protection, mobile phone protection, extended warranties and discounts or even cashback with partner brands

6. Review redemption options: For reward cards, you can check whether points and miles are easy to redeem. Or whether you can transfer them to travel partners and also whether there is a minimum required before you can redeem?

Disclaimer: Mint has a tie-up with fintechs for providing credit, you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit score. Mint does not promote or encourage taking credit as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.