Which credit card to opt for? Compare them along these 8 key parameters. Check list here | Mint

If you are planning to get a credit card sometime soon, it is vital to first carry out the initial research and do an objective comparison between the cards offered by different banks. While you do so, you might feel that each card offers a range of benefits and features, some of which are important while others are not. 

So, what merits comparison and what not? Sounds like a tough choice but actually it is not.

It is recommended to compare different credit cards along some pre-defined parameters. Notably, almost all credit cards charge a similar rate of interest which, invariably, is high. So, comparing the interest rates which the banks charge on their credit cards is not going to help you choose a credit card.

Additionally, almost every credit card offers around 45-day interest free credit period. From this perspective too, there is barely any difference to speak of. So, what else can you consider before taking a call as to which credit card is better for you.

Here, we share eight different parameters along which you can judge a credit card’s potential.

Key parameters to judge before choosing credit cards:

1. Reward points: Most credit cards offer reward points at every purchase. These points can be used to do hotel or flight bookings. Some cards also enable the cardholders to get cashback with these reward points.

For instance, ICICI Bank’s Coral Credit Card offers 2 reward points on every ₹100 spent on card (barring fuel). It also offers 1 reward point on every ₹100 spent on utilities and insurance categories.

2. Airport lounge access: Most credit cards give access to lounges in domestic and international airports. The more elite the card is, the wider the access is given to these lounges. This means some cards give access to domestic airport whereas some also give access to international airports. Additionally, superior cards give more frequent access to these lounges. 

For instance, ‘Paytm SBI Card Select Card’ entitles cardholders to access four domestic airport lounge in one year, and capped to one in each quarter. Meanwhile, Axis Bank Magnus Credit Card offers unlimited lounge access for cardholders.

3. Discount on dining: Some cards offer discount on a number of restaurants. So, if you are a foodie and like eating out a lot, this may work in your favour. For instance, Axis Bank’s Rewards credit card offers 30 percent instant discount on Swiggy.

4. Online shopping discount: Credit cards also offer shopping discount at online market places or on grocery, travel bookings, among others.

5. Movie tickets: Some special credit cards offer complimentary movie tickets. In some cases, one extra ticket is given with purchase of one.

For instance, ICICI Bank’s Coral Credit Card offers 25 percent discount on movie tickets, on Book My Show and Inox, twice per month.

6. Free passes to events: In some case, credit cards offer free passes to special events such as concerts and musical nights, and so on.

7. Annual fees: One factor that matters is that the credit cards charge an annual fee. And lower the fee is, the better it is. However, when the benefits and discounts far outstrip the annual fee then it is worth paying a high fee in some cases.

8. Air miles: As you use a credit card, you stand to earn some reward points. After accumulating these points over a period of time, you can convert them to buy air miles. And these air miles can be used to buy air tickets.

There are some credit cards which offer complimentary economy class tickets. For instance, Axis Bank offers Vistara Credit Card which offers one complimentary economy class ticket as welcome benefit. One can also earn upto 3 economy class tickets every year.