How to choose the right credit card for your spends

Naveen Kukreja Paisabazaar.comBefore I begin this piece, let me do some foretelling first. I say all of us can be grouped into one or more of the groups below based on our tastes and likes:1.Travelers: love to see new places, meet new people … or perhaps have jobs that require frequent travelling2.Fuel(lers): live life on the fast lane or are part of the daily commuter tribe 3.Shopaholics: love to buy new stuff or shop to beat the blues or follow the latest trends in clothes and gadgets4.Diners: love to eat out and try different cuisines, or spend quality time with family over foodWe live our daily lives in a way that defines us … spending as per our needs. With plenty of options available we are accustomed to buying “differentiated” things and experiences — from the clothes we wear and the cars we drive to the way we use our leisure time to shop, dine or travel. What if we were to show such interest when choosing our credit cards? Do you think that will change anything? For starters, you will be able to align your needs with the right card, translating into savings and rewards for spending! With so many banks offering credit cards, the differentiator that prompts you to choose a card over another is the card’s purpose. And that is what we, the users, stand to benefit from.1.Travel cards: These cards offer cashback and reward points complementary with your travel itinerary. The most common benefits provided by these cards include air miles, access to airport lounges and discounts on travel bookings. When choosing a travel card, check whether the benefits offered are: a.applicable for all travel modes (airline, railways and buses)? b.specific to a travel mode? c.only for a particular brand?For instance, a Jet Airways ICICI Bank Rubyx card offers rewards specific to Jet Airways alone. Whereas American Express Platinum Travel Card is not restricted to the carrier you fly with. If your travel spends are very high (up to Rs.4 lakhs a year), opt for this card as it offers more savings in return and better discount vouchers. 2.Fuel cards: These cards essentially reward you for fuelling up your tank! Most banks have tie-ups with either IndianOil or HP and issue credit cards in partnership with them. a.IndianOil Citibank Titanium Card offers 4 points on fuel spends of Rs 150 whereas on HPCL Coral Card, you earn 5 points for every Rs 100 spent on fuel spends which can be further redeemed for fuel.3.Shopping cards: These cards reward you for shopping at your favorite showrooms. In this category too, you will find cards offering discounts on all brands and specific brands. So, you would have to decide whether you are loyal to any particular brand and would like a card dedicated to it, or a use-anywhere card will do. •Standard Chartered Inner Circle Platinum Credit Card offers 9x rewards on purchases made at LifeStyle and Home Centre outlets. •Whereas HDFC Solitaire Credit Card, a women-focused offering, gives discounts based on your card spend irrespective of the brand. Here, spends of Rs 150 will fetch 3 points which can be redeemed for cash back. 4.Dining Cards: As evident, these cards reward you for eating out. From dining series of Citi to ICICI’s dining range, you can get up to 20% off on your dining bills. For instance, HDFC Platinum Times Card gives you discounts on both food and entertainment (movie tickets).Apart from these options, a lot of us would prefer a card that checks all boxes. For such multi-purpose uses you can opt for regular cards that offer cross-purpose benefits. Some all-purpose cards on offer include:•RBL Platinum Delight Card: This card offers rewards on shopping, entertainment, travel and even fuel, with 2 points for every Rs 100 spent.•ICICI Bank Coral Credit Card too offers benefits on dining, wellness, fuel spends.The next time you buy a credit card, check whether the card is aligned to your purchase habits. If used judiciously, credit cards can actually help you save on your spends; so choose wisely!