How to choose a credit card in India

A credit card is only worth holding if it fits how you actually spend. The best card for a frequent flyer is a poor fit for someone who mostly shops online. Here's a framework that works for most people.

Start with where your money goes

Look at your last three months of spending. If most of it is online shopping, a cashback card wins. If it's fuel, a co-branded fuel card. If it's flights and hotels, a travel card with lounge access and low forex markup.

Weigh the fee against the rewards

A card only pays if its rewards — after any annual fee — beat a simple no-fee card. Many cards waive the fee if you spend a threshold, but a spend-based waiver is not the same as a lifetime-free card.

• Lifetime-free: never charges a fee — ideal as a first or backup card
• Spend-waiver: the fee is refunded only if you hit a yearly spend
• Fee-paying: worth it only when the rewards and perks clearly exceed the fee

Check the caps and the fine print

Accelerated rewards almost always have a monthly cap, and reward points are usually worth less than plain cashback once you redeem them. Read the cap and the redemption value, not just the headline rate.