The festive season sees an uptick in shopping offers. It also sees an uptick in offers for credit cards that could facilitate those shopping experiences. There are options galore.

Multiple banks and lenders are vying for your attention. Your own bank would have probably contacted you about a pre-approved offer. This begs the question: how do you decide what to choose from this sea of offers? What’s the best card for you?

The card offers depend on your income and experience with credit. If you’ve never had a loan or credit card before, you may be offered a card with basic benefits. But if you’re an experienced borrower with a good repayment record, or have a high income, you may be offered a card with premium benefits. Let’s look at some of the things you can keep in mind while deciding on your card.

What are you eligible for?

The card you can get is based on two major factors: your income and your credit score. A track record for income stability works in your favour.

A credit score of over 750 helps you establish your creditworthiness. Not having a credit history as you have never taken a loan or credit card before is not a huge deterrent to getting a good card. If your income is also unstable, you may not fit the eligibility criteria of most card issuers. You may, however, get a credit card against a fixed deposit.

What’s your desired lifestyle?

If you’re eligible for multiple cards basis the two factors above, your choice may be guided by what you want to achieve with your card. Your credit card should help you achieve your preferred lifestyle. You may already be in that lifestyle or looking to upgrade to it. Either way, ensure that your card’s benefits align with your wants and needs.

This will require you to look at your spending patterns. What are the things you like to spend on? Are there areas where you spend heavily? For example, you may be a big online shopper. You buy high-end electronics. Or you like to travel and have fine dining experiences. Your card should help you with these pursuits.

What to avoid?

To attract you as a customer, the company selling you the card needs to align with your needs and wants. This may not always be the case. For example, in the pandemic, buying a credit card with travel benefits and free lounge access or free movie tickets would not have helped. But it would have helped to have a card with online shopping benefits while you were stuck at home.

Many new cards, in fact, incentivise online spending with accelerated rewards, discounts and deals on categories such as apparel, electronics, or food orders. Pay attention to the value these benefits create.

The greater value created the better for you. Don’t sweat the small stuff. For example, fuel surcharge waivers are unlikely to make a substantial positive impact unless your petrol costs are massive.

Free card or premium card?

There are cards that don’t have an annual or renewal fee. Other cards attract these fees due to the premium benefits they provide.

The premium benefits could range from low-end ones such as a free movie ticket to luxurious ones such as hotel stays, golfing trips, concierge services, and unlimited lounge access. Typically, the rewards pay for the annual charges. You get what you pay for.

The more you pay, the more premium the rewards. Sometimes, the fees are waived for preferred customers or when you hit a spending milestone such as Rs 1 lakh in a year.

In deciding which card to pick, you should go by your wants and needs. If you need to pay a fee to fulfil those wants and needs, you may be justified in picking a premium card.

Are you loyal to a brand?

There are many co-branded cards catering to shopping, travel, fuel, and food categories. The card will help you get higher rewards for shopping with a brand.

If you’re loyal to that brand, it makes sense for you to have a co-branded card. Your benefits from shopping with that brand will increase. Conversely, if you like to keep your options open, take a card that could give you rewards for a wide variety of shopping experiences.

Ask the card seller to explain the reward math to you. To earn credit card rewards in your preferred shopping category, you need to use your card regularly.

Spending to certain limits may unlock higher rewards and lower fees. The rewards are also subject to caps. You need to be aware of how your card helps you and what its tangible benefits are.

This will help you get the best card for yourself and maximise its benefits.

The writer is CEO, BankBazaar.com