A critical factor in choosing the best credit card for your purchases is to identify your spending habits. There are different types of credit cards, each offering various perks in the form of –

• Reward points
• Accelerated reward points
• Cashbacks
• Frequent-flyer miles
• Purchase protection

Here are some of the most thoughts after services you can purchase with a credit card.

Expensive consumer objects

• Perks: Reward points, Cashbacks, Purchase Protection.

The reward point system grants you points when you meet a certain threshold with your credit card payments. For instance, you accumulate 10 points for every Rs.10,000 purchased with your card.

You can later redeem these points in exchange for gift vouchers and other rewards.

Buying expensive items enables you to meet that threshold consistently and you can even get significant cashbacks if you manage to purchase items during seasonal sales.

Purchase protection insures the items you purchase with a credit card, up to a certain amount. Though, the insurance tenor for the product varies among different financial institutions.

Credit card is also used for purchasing fuel

Perks: Reward points & Accelerated reward points, Cashbacks.

Accelerated reward points offer additional points if you use your card for pre-specified purchases or transactions. These unique points are available across a wide variety of services.

For example, if you purchase fuel worth Rs.1,000 with a card that offers accelerated reward points, you accumulate more points than a regular purchase.

Daily commuters with personal vehicles who travel a lot via motorcycles or cars benefit most from these purchases.

You can even get the most out of your card in the form of cashbacks and by making purchases during special offer periods.

Online purchases

Perks: Reward points, cashback, purchase protection.

The e-commerce sector has simplified online purchases, offering special discounts on credit cards from certain financial service providers.

Besides the usual cashback and purchase protection, liquid cash also offers another advantage in the form of payment recalls.

If you make a purchase online which you later realise is fraudulent, you can escalate the matter to the non-banking financial institution who issued the card. They will withhold the funds from the vendor until the matter is resolved.

Thus having access to a credit card and knowing how to use it wisely could save you from falling prey to fraudsters or dishonest vendors.

Travel facilities

Perks: Reward points & Accelerated reward points, cashbacks, frequent-flyer miles.

If you are a frequent traveller who relies on car rentals, buses, trains or flights, a credit card is the best alternative for liquid cash.

Besides accelerated reward points and cashback offers, travel-based cards also provide frequent flyer miles. For every 20 miles travelled, you may receive 1 flyer mile and be entitled to certain rewards once you reach a threshold. Certain cards even allow free airport lounge access each year for a set number of times.

There are many known benefits of travel credit cards, but the offers vary among different financial institutions. It is best to look into all available options before zeroing in on an NBFC.

Miscellaneous purchases

A credit card is a flexible instant payment tool that lets you accomplish multiple financial goals. You get to –

• Increase your credit score.
• Avail cashbacks.
• Enjoy special awards such as gift/cash vouchers, discounts etc.
• Short term insurance on products you purchase with the card.

Financial service providers like Bajaj Finserv presents pre-approved offers that offer hassle-free ways to procure credit cards. These offers are available on a variety of products including personal loans, business loans, home loans etc. Check your pre-approved offers by giving your phone number and name.

There are different tiers of credit cards based on the perks they grant to any individual. For instance platinum, prepaid, student, travel, balance transfer, RBL credit card etc.

In order to find the right one to finance your new purchases, you must be able to choose a credit card that compliments your spending habits and lets you incentivise on them.