5 Tips – How to Choose High Reward Credit Cards

So many cards, so many perks, so much choice! How do you choose a card that rewards you handsomely? Credit cards are a staple of financial payments in developed economies. In many developing economies, like India, credit cards are becoming increasingly popular because of their convenience and ease of use. With demonetization, more people are choosing to use debit and credit cards to make payments.

The market is flooded with various credit card options from many lenders and it might get a bit confusing to find the one best suited to your needs. There are cards that offer free air miles based on the amount you spend on your card. Or you can opt for fuel cards that waive the surcharge when you buy fuel. Some cards offer discounts on shopping, dining or entertainment. Some have enhanced security features. Some offer cash back rewards. Some cards combine several of these features. As with any financial services product, you need to research the various cards to see which best suits your priorities and lifestyle.

How to Choose the Best High Rewards Credit Card?

1. Choose a credit card suited to your lifestyle: If you are more of a shopping person, then it makes more sense to go for a credit card that offers discounts and cashback on shopping, rather than one offering Air Miles. Similarly, there is no point choosing a card that offers golf club perks if you do not play golf.

2. Study your spending pattern: 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 extra rewards for online shopping rather than for using it at a mall.

3. Check Interest Rates: Be sure to check the interest rate charged on the balance. Some credit cards come packed with great perks and privileges, but the high interest charges on the balance wipe out all of the positives. Be wary of interest charges.

4. Look up Annual and Renewal charges: Some credit cards offer best-in-class advantages and benefits, but the annual fees and renewal fees and other assorted charges outweigh all the benefits on offer. So even if a credit card offer looks tempting, be sure to check the annual rate and renewal charges.

5. Compare features and research: Compare the features of various high reward credit cards to see which is most suitable for you. Look if the card offers any rewards or benefits as per your lifestyle need, extra security features in case of fraud or theft, and the various fees charged including annual fees, late fees etc.

A credit card is an easy and convenient way to pay for your purchases over time. Remember, any purchase you make on a credit card is on borrowed money that you only have to pay back at the end of the billing cycle. You can benefit from a high rewards credit card and get rewarded for spending, if you use it wisely and responsibly.