How to Choose Your Best Credit Card

Credit Card can be both convenient and efficient financial tool. Some people complain Credit Cards are the most dangerous weapon which burn their bank savings and earnings. Actually, it depends on YOU!!— Even THE best credit card in the world won’t help if you don’t use it in the right way.

There are more than 50 credit cards available to a normal customer in Sri Lanka. Do you know which one is suitable for your needs? If you are not sure, don’t bother. It’s easy!! Here I’m guiding you to choose the best for your needs.

Cards and Your Lifestyle

Before choosing the right credit card, you need to understand your lifestyle. If you are a frequent traveller or would like to enjoy leisure activities in a Resort or in a Hotels, then you need to consider the Travel and Leisure benefits of credit card. There are several credit cards which give greater benefits when you do the booking with Air Line or Resort & Hotels.

If you spend a lot on shopping or groceries, consider the shopping benefits of credit card. If you are frequently dining outside with your partner, consider the dining benefits.

Once you have decided on the above, now you can easily compare the credit cards and choose the best for you.

Annual Fee, Join Fee and Interest Rates

Each bank offers different Annual fee, Join Fee and interest rate for their different category of Credit Cards. Some banks offer Annual Fee wage-off facility and some offer zero Join Fee facilities as well. As it is a common scheme implemented to attract customers, you need to carefully understand Annual and Join Fee along with Credit Card Interest Rates, which may be high in certain schemes.

Other Credit Card Fees

In addition to the common Annual Fee and Join Fee, there are several other important fees like Late Payment Charge, Over Limit Fee, Cash Advance Fee and Card Replacement Fee applicable to a credit card. When choosing a credit card, I always recommend you to give special attention to the other fees associated with a Credit Card.

Balance Transfer Facility

A credit card balance transfer is the transference of the balance (the credit left) from a credit card account to another account held at same company/another credit card company. This is a good feature, you can enjoy hassle free easy cash for an immediate need. Some banks offer very low interest rate for Balance Transfer facility. If you are a customer who effectively manage your credits, you can use this Balance Transfer Facility. Otherwise, it is not generally recommended to use Balance Transfer Facility, because you may end up with a bad experience with your Credit cards.

Most importantly, always double-check your Credit Card terms before sign-up to any credit card products. Once you started to use please remember to pay your credits in full before the due date. If you choose to use credit cards, make a commitment to use them responsibly. I believe that most of you who read this site are ready to do so. What you think, if you have any thoughts or comments, please share it with me in the comments section below.

Shanuka Wijeratne

Shanuka is a contributing writer at She is a curious traveller and careful spender who keeps her busy to find-out the best Credit Card promotions and deals in the city to help other people to save money by getting the best bang for the buck.

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