Your Spending Habits Could Be Costing You: Are You Using the Right Credit Card?

In todays digital world, a credit card has become a must-have item. However, are you leveraging this effective weapon to the maximum, or are you unknowingly spending more? The best rewards credit cards in India come with benefits enhanced in designated expense categories.

A mismatch creates an opportunity cost: rewards you could have earned but didnt, simply because your card wasnt aligned with your spending habits. This way, those valuable rewards often go unused- reducing the overall value you get. However, recognising this is the first step to making your wallet smarter.

Decode Your Spending Fingerprint

So, how do you make your credit card serve you and not the other way around? It begins with knowing your purchase patterns. Examine where most of your credit card spending falls in the month.

Are you always reserving flights and hotels? Is a lot spent on petrol for your car? Is online shopping the biggest thing on your statement, or is it groceries and utility bill payments?

Match the Card to Your Lifestyle: Find Your Fit

The market is full of choices; it's not about the best rewards credit cards in India but about choosing a card that's perfect for you. Listed below are some common spending profiles and the types of cards that pair well with them:

The Avid Traveller: If airports are your second home, look for cards offering high reward rates on travel bookings (flights, hotels), complimentary lounge access (domestic and international), lower foreign currency fees, and comprehensive travel insurance.

Example: The Axis Bank Atlas Credit Card is a travellers card, and it provides EDGE Miles on spending, with accelerated earnings in travel. The miles can be transferred to various airlines and hotel partners across the world and in the country, giving flexibility. It also comes with standard benefits like lounge access and concierge, essential for frequent travellers.

The Daily Commuter: If most of your expenses are fuel-related, a card that provides deep savings in this area is crucial. Search for straightforward cashback or bonus reward points on fuel spending along with a waiver of the fuel surcharge (typically capped monthly but still useful).

Example: The Indian Oil Axis Bank Credit Card is a top favourite. It offers high value back in the form of reward points on fuel purchased at specified Indian Oil outlets, essentially lowering your fuel bills.

The Online Shopper: If a large chunk of your spending happens online- from shopping on e-commerce platforms and ordering food to paying bills, then a card that rewards digital transactions is a must. Look for one that offers high cashback or bonus reward points specifically for online purchases.

Example: The SBI Cashback Card is notable for its simple value proposition. It provides a generous percentage, usually around 5% as cashback.

Disclaimer: The features and charges mentioned above may change at the discretion of the issuer. Please check the latest information before applying for a credit card.

Keep in mind that the best rewards credit card for someone who spends heavily on fuel will be very different from the best choice for a frequent international traveller. Dont just chase high reward rates; focus on earning them where you spend the most.

Consider Additional Factors Which Go Beyond the Rewards

Although matching rewards to spending is most important, other elements determine the real value of a credit card:

• Annual Fees: Most reward credit cards have annual fees. Make sure the benefits you'll use outweigh the costs. Cards that waive fees on reaching specific spending limits can be a viable option.

• Welcome Bonus: Look for cards with generous welcome bonuses (points, vouchers, memberships) it's an excellent first-value increase.

• Interest Rates (APR): If you occasionally carry a balance, the APR becomes a key factor. Aim to pay on time to avoid hefty interest charges.

• Specific Perks: Look at other perks that are important to you complimentary golf rounds, particular brand discounts, and insurance protection are a few to consider.

Switch to Smarter Options

When you understand where your money goes, choose a card that rewards your spending habits- this will convert your everyday expenses into meaningful rewards. Instead of letting your spending cost you, make it work for you. Finding a single credit card app that covers diverse categories - like travel, fuel, online shopping, and dining can be a challenge. Thats why newer, smarter choices like the One Credit Card are gaining popularity.

This card is designed to deliver value through a powerful blend of rewards, travel perks, and protectionall in one sleek package. Rather than juggling multiple cards, this one adapts to your lifestyle. Its standout feature? A dynamic rewards structure that earns you 5X points on your top two spending categories each monthautomatically tracked and optimised through its intuitive mobile app.

If you're looking for a card that fits your current spending style and gives you more in return, the One Credit Card is worth a closer look. Apply now if it feels like the right fit for you.