Finance buying guide

How to choose a credit card

The right card depends on how you use it. If you might carry a balance, the interest rate matters more than rewards. If you pay in full each month, compare fees against rewards you will actually use. Read the key terms document, and know how to complain to your regulator if something goes wrong.

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Weighted criteria

What matters when choosing credit cards

Weights add up to 100 and reflect how much each factor usually decides satisfaction. Change them to fit you in the scorecard.

  1. Interest rate (APR)

    25%

    The cost of carrying a balance, cash withdrawals and any promotional rate after it ends.

    How to check: Read the APR and finance charges in the key terms or Key Fact Statement before applying.

  2. Annual & other fees

    20%

    Annual or joining fees, late fees, foreign transaction fees and cash advance charges.

    How to check: List every fee in the schedule of charges and estimate what you would pay in a year.

  3. Rewards you will use

    20%

    Cashback, points or miles, and how easily you can redeem them.

    How to check: Estimate rewards from your real spending, and read caps, exclusions and expiry rules.

  4. Protections & security

    15%

    Fraud protection, dispute and chargeback rights, card controls and alerts.

    How to check: Check how to report fraud and dispute charges, and turn on transaction alerts.

  5. Eligibility & credit impact

    10%

    Whether you are likely to qualify, and the effect of applying on your credit record.

    How to check: Use eligibility checkers that do a soft search where available before applying.

  6. Service & complaints

    10%

    How the issuer handles problems and how to escalate.

    How to check: Find the grievance or complaints process and your regulator's complaint route.

Avoid

Red flags

  • Pressure to accept a card bundled with an unrelated product.
  • A promotional rate without a clear rate after it ends.
  • Paying only the minimum due without understanding the interest cost.
  • Calls asking for your card number, CVV or OTP (banks do not ask for these).
  • Fees not disclosed before you apply.

Before you pay

Checklist

  1. Decide whether you will pay in full every month.
  2. Read the key terms or Key Fact Statement.
  3. List all fees and compare with expected rewards.
  4. Check eligibility before a full application.
  5. Set up autopay for at least the minimum, plus alerts.
  6. Note the issuer's grievance process and your regulator's complaint portal.

Ask the seller

Questions to ask

  • What is the APR on purchases, cash and after any promotion?
  • What are all the fees, including foreign transactions?
  • How do rewards expire or get capped?
  • How do I close the card if I want to?

After you buy

Warranty & returns

Credit cards have no warranty; your protections come from the card agreement and local consumer credit law.

  • In India, unresolved complaints can go to the RBI Ombudsman through the RBI complaint portal after you have complained to the bank.
  • In the US, the CFPB accepts complaints about credit cards.
  • In the UK, unresolved complaints can go to the Financial Ombudsman Service.

Track the return window and warranty end date

Common mistakes

Myths vs facts

Myth Carrying a balance improves your credit score.

Fact Paying in full on time builds a good record; carrying a balance just costs interest.

Myth Paying the minimum due keeps you out of trouble.

Fact It avoids late fees, but interest builds up on the rest.

Where this comes from

Official sources

Criteria and weights are AltFTool's editorial judgement, not a statement by these bodies. This guide is general consumer information, not professional advice.

FAQ

Credit Cards: common questions

How many credit cards should I have?

There is no right number. Fewer cards are easier to manage. Each application can affect your credit record.

Does closing a card hurt my credit?

It can affect utilisation and history in some scoring systems. Weigh that against fees and the risk of unused cards.

What should I do if my card is misused?

Block the card immediately through the issuer's app or helpline, report the transactions, and keep a record of the complaint.

Free tools

Use these with this guide

Weighted scorecard

Review pattern checker

Complaint letter writer

Warranty & returns tracker

True cost calculator

Also handy: credit card interest calculator, credit utilisation ratio calculator

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