Factors to-Consider while choosing the right credit card

17 July, 2023

Top 3 Factors To Consider While Choosing The Right Credit Card

A Credit Card offers a world of benefits and choosing the right card can make your financial life so much simpler. 

Read our guide to choosing the right Credit Card. 

What is your lifestyle?

Credit Cards are not just a convenient financial tool but also a lifestyle accessory. 

For instance, if you are a frequent flyer, you can opt for a co-branded airline Credit Card like the 6E Rewards XL – IndiGo HDFC Bank Credit Card. Such a card will make your travel smoother and more comfortable with benefits like free lounge access, priority check-in, complimentary flight tickets*, etc. You also stand to earn rewards that you can convert to book flights at discounted prices or for free. 

If you tend to entertain, eat out or socialise regularly, opt for a card that offers a better dining experience and greater rewards and discounts at restaurants. 

If you haven’t used a Credit Card before, you can start out with something simple, such as the Millennia Credit Card from HDFC Bank. It is a cashback type Credit Card where you can earn cashback (in the form of Cash Points) for various purchases. You can redeem these cash points into brand vouchers or statement credit. The Card also offers complimentary access to airport lounges, dining privileges, etc., making it a potentially ideal choice for beginners. Plus, you can conveniently manage the Credit Card via portals like Net Banking, MyCards, mobile banking, etc. 

Choose a Credit Card that suits your lifestyle and offers you the maximum rewards and benefits for the kind of activities you indulge in frequently.  

HDFC Bank has a wide range of co-branded and specialised cards that are tailored for different lifestyle needs. 

What features do you want?

Credit Cards come with a slew of features that can make your life easier. For example, many HDFC Bank Credit Cards offer features such as automated utility bill payment, Easy EMI, welcome bonuses, zero liability on lost or stolen cards, fuel surcharge waiver and insurance cover. So, compare the features between cards before you choose one.

How much are you willing to pay?

What does your credit card cost? Compare the different charges among cards: 

• Annual fees: Most cards charge an annual fee, but waive it off if you achieve minimum spends 

• Finance charges: Banks will charge you an interest when you use revolving credit (carrying your outstanding amount beyond your due date) 

• Late payment and over-limit fee: If you settle your outstanding after the due date or spend over your credit limit, the bank may charge you a late payment fee. 

• Cash withdrawal fee: Withdrawing money from an ATM with your Credit Card attracts charges and interest. 

All cards come with monthly credit limits. If you plan to use your card extensively for travel, dining and entertainment, you might want to opt for one with higher credit limits. 

If you use your card infrequently, choose a card with a lower credit limits. 

Now that you are aware of how to choose the right Credit Card, read more on how to use the Credit Card wisely. 

Do you want to apply for a Credit Card? Click here to know your options! 

*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Credit Card approvals at the sole discretion of HDFC Bank Limited. Credit Card approvals is subject to documentation and verification as per Bank's requirement. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.