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Choosing the right credit card is a big challenge as most of us just get carried away by the credit limit without going into the deatils.

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Which Credit Card is Right for You?

You all know how magically credit cards have changed things for you. You do not have to load your wallet with cash while you travel and risk yourself from being robbed. You just need to place a plastic card with magnetic strip in your purse and there you go on a shopping spree with your friends without worrying that you may run out of cash. Needless to say that’s one thing widely used by youngsters to flaunt.
Credit card is issued by a bank or a financial institution or an equivalent authority. It enables you to borrow funds at the point of sale. It is a shot term financing tool and an interest is charged on the amount you borrow. Your paying credibility decides the amount you can borrow. It is determined at the time of issuance of the card.
There are a number of credit cards floating in the market today. It is not necessary for you to stuff your wallet with all the cards available in the market. But the question may tick your mind as to how you will decide which credit card you should own? Following are the types of credit cards available in the market and how you can pick your plastic chip.
Types of Credit Cards 
  1. Premium Credit Cards – You might have heard of Platinum Cards or Titanium Cards. These are the higher order credit cards. These provide you with a higher credit limit and also come along with attractive features like travel insurance, emergency services, travel incentives etc. These also have higher fees.
  2. Standard Credit Card – Cards like Gold Card or a Silver Card are ones that fall under this category. These cards have a lower credit limit as compared to the Premium Credit Cards and are offered at lower fees. They have limited features like cash back, no transaction fee, zero surcharge etc and provide other basic credit card services.
  3. Private Label Credit Cards – For those of you who are brand loyal, private label cards may work in your favor as these provide special offers when swiped on selected stores frequently.
  4. Secured Credit Cards – Whenever you go for signing up for a credit card and you are asked to deposit a security that becomes your credit limit then you have signed up for a Secured Credit Card.
  5. Reward Credit Cards – As per the amount of purchases you make, you end up earning rewards with a Reward Credit Card. These rewards may vary from special discounts to free merchandise, free air tickets, cash back to other goods and services. It is not that these rewards are offered only by reward credit cards. Premium, Standard and Private Label Credit Cards also offer reward points.
  6. Specialty or Affinity Credit Cards – These cards are specifically for those who wish to support a specific cause like a college, a sports team or a charity institution. When you swipe these cards, a part of it is given as your contribution to these institutions.
  7. Limited Purpose Credit Cards – The usage of these cards, as the name says, is restricted. You can use them in few specific stores and as low credits like gas credits. The fee that is charged is very nominal in these cards.
  8. Prepaid Credit Card – These cards come loaded with cash in advance. This is not attached to a bank account and functions in the same manner as a debit card. These cards have become popular for gifting purposes.
  9. Charge Credit Cards – A Charge Credit Card is one that makes sure that you pay off your debts in full every month. Thus, it does not offer any credit limit. It gives spending flexibility to those falling in higher income slab. You have to make full settlements of the amount used by you every month else you are heavily penalized. It serves well in creating a good credit history for the owner.
  10. Business Credit Cards – These cards are made available exclusively to businessmen who cater to small, medium or large scale industries. These cards help in providing entertainment, travel and training programs which help the businessmen in a big way.
  11. Balance Transfer Credit Cards – These cards are not much sought after. These are used primarily in order to write off the outstanding amount of another credit card. These cards also come equipped with interest-free time period. 
Choosing the Right Credit Card
With the wide range of cards available at your disposal it is important to pick the one that suits your purpose. You should smartly pick your card that gives you maximum benefit and involves minimum cost.
If you are a businessman opting for a business card may suit your purpose. If you are a frequent flyer, you may chose a card that comes loaded with variety of travel deals as when you fly frequently you can benefit from the offers available.
If you fall in the category who uses private transport and the fuel consumption is particularly high then fuel filling cards that give you zero transaction fees and no surcharge along with cash back and rewards would surely make your drive pleasant.
If you are brand loyal you may sign up for a private label card or if brand doesn’t bother you but you are a shopaholic then opt for cards that provide you with cash backs and special discounts and offers like free merchandise etc.
Those of you who wish to contribute your bit to the society; you may add affinity cards to your list of plastic money in your wallet. Prepaid Credit Cards can come handy if you wish to gift something to your loved ones but do not want to end up giving cash nor do you want to get involved in purchasing gifts that may or may not appeal the taste of your beloved. As these cards come loaded with cash, you can easily gift them without getting into the hassle of making envelopes.
If you are the one who finds remembering billing cycle tedious and have a moderate spending habit, Secured Credit Cards may work best for you. If you want to restrict yourself from getting trapped in the debt web that gets created by over usage of credit card then you may opt for a charge credit card but make sure that you clear your debt in full every month else you may be heavily penalized.
Popular Credit Cards Available in India – There is a wide range of credit cards available in the market. Take a glance at few popular credit cards. 
  • Citibank Dinners Club International card
  • Barclays Bank Smart Budget Credit Card
  • Axis Platinum card
  • HSBC Platinum card
  • American Express Gold credit card
  • CorpBank Gold card
  • Vijaya Bank VISA Classic International Card
  • Vijaya Bank Visa Gold Credit Card
  • Gold International Card
  • Indian Overseas Bank Visa International Credit card
  • CorpBank Classic card
  • ICICI Bank Online card
  • HDFC Silver credit card
  • Bank of India's India Card
  • Syndicate Global Gold Credit Card 
Credit Cards have undoubtedly made life simpler for all of us. But it is important to choose the right card for your wallet and use it diligently else it may open gates for credit trap that may hit your pocket severely. It is important that you use your cards with caution. If so you are welcome to the world of improved living.