The Meaning of Best Credit Cards Decoded

Credit cards are one of those plastic instruments that serve a variety of customer needs with ease second to none. Be it the case of helping you shop for vegetables at grocery stores or book your travel ticket, credit cards serve all with the cashless purchasing power. It saves you from the embarrassment of not having sufficient cash to spend on the necessities. As the market is flooded with a variety of credit cards, it does become tough to choose the best from the list. So,  which is best and which is not? The article has the answer.

What Should the Best Credit Card Have?

The best credit card must ensure the following benefits.

Cashback & Discounts - The card you choose must have eye-catching cashback and discount deals to ensure the costs are low. While discounts are an outright reduction to the cost, cashback gets credited to the credit card account a few days after the purchase is made. With cashback, the bill reduces to lower the payment burden. Cashback and discounts must be there on a plethora of products to ensure maximum savings.

Attractive Rewards Structure - A good rewards structure can only help build on the rewards to redeem later on for attractive buys. The rewards must accumulate on less amount of spending to increase the count. If you are getting a credit card with an accelerated reward structure, it would increase the reward count. Accelerated rewards multiply rewards by earning you more than normal. Let’s understand from an example below.

Example - Suppose a credit card comes with 5 rewards per ₹100 spent. Another card comes with 2X rewards per ₹100 spent. In the latter case, you would stand to earn 10 rewards on every ₹100 spent compared to just 5 rewards in the former.

Travel Lounge Access - Having access to domestic and international airport lounges only magnify the beauty of having a credit card. You should look for a card allowing maximum visits to airport lounges in a year. The lounges you go would have refreshments and meals to make you savour the moment.

Discounts on Dining - Credit cards work in conjunction with dining programs to ensure you don’t sweat much on eating outside. See whether the card you want comes with a dining program on not. Most dining programs come with a minimum 15% discount at select outlets across the country.

Fuel Surcharge Waiver - You should also look for a card offering a surcharge waiver on fuel spends. Credit cards come with a stipulation of the minimum transaction to be made to grab the offer. Check your fuel budget to assess whether you can meet the spending requirement or not. If so, you are well on the way to lessen the fuel cost burden on your pocket. Also, the waiver is capped to a certain limit. The limit must be reasonably high to convince you for the card.

Zero Lost Card Liability - Uncertainty is the name of this fluctuating world and it can so easily take you under its grip. Yes, you read it right! Your card may get stolen or lost and some unauthorized transactions can take place to leave you in a spot of bother. Some credit cards come with zero liability feature wherein you get immuned from the losses caused due to such transactions. Yes, you need to report the incident immediately to the customer care of the bank.

So, these are some of the parameters on which you need to weigh your credit card options. Hope you choose the best on offer.