How to choose the best credit card according to your profile

Credit cards have evolved from simple payment tools into comprehensive financial instruments, packed with personalised perks, rewards and benefits. But with so many options on the market, the question arises: how do you choose the card that truly suits your profile? How do you identify the one that aligns with your daily routine, spending habits and lifestyle? Amid countless offers and promises, how can you tell which card will actually be your financial partner – and not just another source of unnecessary expenses?

Choosing the right credit card goes far beyond looking at the annual fee or the available limit — although a no-fee option is certainly worth a second look. More importantly, it’s essential to consider your spending habits, financial goals and actual repayment capacity.

In this guide, we outline the key criteria to help you make an informed, tailored and strategic decision — one that brings genuine value to your everyday financial life. Read also: Understanding how credit cards work: What you need to know.

Understand your spending profile

Before comparing which credit cards suit your goals and financial profile, it’s essential to understand your own spending behaviour. Take a close look at your monthly expenses and identify where most of your money goes: groceries, transport, travel, online shopping, entertainment? Knowing your habits will help you choose a card that delivers real value in your everyday life.

For example:

• If you spend a lot on groceries, a card that offers cashback in this category could be a smart choice.
• If you travel frequently, a card with a frequent flyer program or no foreign transaction fees can offer greater value.
• If you shop online often, especially from major retailers, look for a card that provides cashback or exclusive discounts for online purchases.
• If you regularly fill up the car or take long drives, a card that offers rewards at service stations can help you save over time.
• If dining out is your thing, consider a card that earns points or offers cashback on restaurants and food delivery.
• If you’re part of loyalty programs, opt for a card that’s linked to those schemes – ideally one where points don’t expire and have a good conversion rate into rewards or travel benefits.

Each type of consumer may benefit from a different kind of card, often combining one or two of these features. On the other hand, if you’re after a more straightforward product, looking to stay in control of your finances, or rebuilding your credit history, a card with a lower starting limit, no annual fee and features like real-time spending alerts can provide added security and help with budgeting.

Set your priorities

As mentioned earlier, everyone has different interests — for some, the most important thing might be earning points to redeem for products or flights. For others, avoiding annual fees or having access to interest-free days is the top priority. That’s why it’s important to take a moment to reflect on what you value most:

• Rewards and cashback? Fee waivers? Travel insurance? Flexibility to pay in instalments? A higher credit limit?

Once you’ve clearly defined your priorities, it becomes much easier to cut through marketing noise and focus on what truly matters to your financial profile.

Evaluate the rewards and benefits

One of the biggest drawcards of credit cards is the range of rewards programs they offer — often enhanced by the card providers themselves, such as Visa, Mastercard and American Express. However, before making a final decision, it’s essential to understand how each benefit works, as outlined by banks and financial institutions — and whether they’re actually worth it. After all, a cashback program may not be worth it if it comes with a high annual fee.

Here’s a closer look at the main types of rewards and how they generally work:

1. Cashback

This is a direct return of money based on your spending. Some cards offer cashback on all purchases, while others focus on specific categories like groceries or fuel. In some cases, there may be monthly or annual limits on how much cashback you can earn, and sometimes the cashback has usage restrictions or expiry dates.

Still, this is a great option for those wanting to save money in a practical way. It tends to benefit people who use their card frequently and pay off the full balance each month.

2. Frequent flyer points and rewards

Cards linked to rewards or frequent flyer programs convert your spending into points that can be redeemed for flights, products or services. Some cards also allow you to convert your points into credit on your card statement.

However, there are some limitations — many cards earn points only on certain categories or at specific retailers, and frequent flyer schemes are often tied to selected airlines. Points may also expire or have caps on how many you can accumulate per month or year.

Even so, this type of benefit can suit a range of consumers. It’s typically recommended for frequent travellers, those planning future trips, or anyone who wants to redeem points for other perks.

3. Discounts and partnerships

Some credit cards offer discounts at partner stores, cinemas, restaurants or early access to exclusive promotions. These benefits are often linked to the card provider’s partnerships.

But keep in mind: many of these deals relate to leisure or lifestyle spending. So ask yourself — do you go to the movies often? Do you enjoy eating out regularly? If not, these perks may not be worthwhile. That said, for those who frequently spend in these areas, these cards can offer excellent value.

4. Additional services

Extras such as travel insurance, price protection, extended warranties, roadside assistance and access to airport lounges can add meaningful value — as long as you actually use them. Other common perks include no foreign transaction fees or promotional interest-free periods.

However, these premium benefits often come with higher annual fees. Make sure the perks are truly useful for your lifestyle and that what you get in return outweighs the cost. Also note that many high-tier cards require a minimum income or a strong credit score to qualify.

Compare the fees involved

Fees are an unavoidable part of using a credit card — just like any other banking service or product, they help cover the cost of maintenance and operation. It’s also important to remember that a credit card is a form of borrowing — often referred to as a revolving credit facility — where a set amount is made available and must be repaid each month.

For that reason, fees, charges and other associated costs should be carefully reviewed. Here are some of the main ones to watch:

1. Annual fee

This may be charged in full or in instalments. Some cards are fee-free, while others offer reduced annual fees if you reach a minimum spend each month. In some cases, cards waive the fee for an initial period, such as the first year.

2. Interest on outstanding balance (revolving credit interest)

Charged when you don’t pay the full amount on your statement — that is, when you carry a balance from month to month. This is often one of the highest interest rates on the market and should be avoided whenever possible.

3. Cash advance fees

Withdrawing cash using your credit card typically incurs interest from the day of the transaction. Some cards may offer lower fees or even waive charges if the withdrawal is made from the provider’s ATMs or through partnered networks.

4. Foreign transaction and currency conversion fees

When shopping in a foreign currency, you may be charged an international transaction fee (including government charges like the IOF in some countries) as well as a conversion margin. Some cards offer fee-free international purchases — though this may be limited to certain currencies, countries or spend thresholds.

5. Rewards program fees

Some cards require you to pay to join or maintain access to a rewards program. As previously mentioned, many rewards also come with restrictions around categories, expiry dates and limits on how much you can earn.

In short, cards with high fees are only worth it if you’re making full use of the benefits on offer. Otherwise, it’s smarter to opt for simpler, low-cost alternatives that better suit your needs without adding pressure to your budget.

Analyse the interest-free period

The number of interest-free days on a credit card can be a powerful ally in managing your finances. This feature refers to the period during which you can make purchases without paying interest — as long as you pay your statement in full by the due date.

Some cards offer up to 55 interest-free days, which can be highly beneficial for those who plan ahead. It allows you to delay payment and keep your money invested or earning interest for longer.

However, a word of caution: if you don’t pay the full amount on your statement, you may forfeit this benefit and start accruing backdated interest — which is often charged at very high rates.

Introductory offers: opportunity or trap?

Many credit cards come with attractive welcome promotions — such as a waived annual fee for the first year, bonus points, or 0% interest on purchases or balance transfers for a limited period. While these offers can be appealing, they must be approached with caution, as not everyone can take full advantage of them, and costs may rise significantly after the promotional period ends.

Here’s what to consider:

• 0% interest on purchases or balance transfers can be helpful if you’re trying to get your finances back on track.
• Bonus points can fast-track your rewards and help you redeem benefits sooner.
• Temporary fee waivers can give you a no-strings-attached trial period to test the card.

Still, once the offer ends, standard conditions apply — so it’s essential to check the fine print and be prepared for the transition.

Check your credit score

Your credit score is a key factor when applying for a credit card. As already mentioned, some cards with more premium benefits may demand more from the applicant. A good score opens the door to more complete options,

with better limits and benefits. If your score is low, consider:

• No credit check cards: Such as prepaid or secured cards.
• Entry-level cards: With fewer benefits, but a good option for rebuilding credit.

Also, use your credit card responsibly, always pay on time, and monitor your score to improve your credit history.

Choose a limit you can manage

The credit limit offered by banks and financial institutions is not always ideal for your budget. Having a very high limit can lead to spending beyond your repayment capacity, which in turn can lead to debt.

Consider requesting a lower limit that matches your income, and increasing it gradually according to your usage and financial discipline. This is also seen as a good practice by institutions, which gain more trust in your financial management and may offer a higher limit than the initial one.

Be careful with store cards

So-called store cards or cards from specific retailers may seem appealing — especially when they offer exclusive instalment plans or discounts. However, they often come with high interest rates and can only be used within that retail network. Before applying for this type of card, consider:

• Do you actually shop at that store frequently? Do the discounts outweigh the fees? Is there an interest-free period?

If the answer is no to any of these questions, it’s likely better to look for a traditional credit card.

Evaluate whether you really need a credit card

Despite the benefits, not everyone needs a credit card — or a premium one. If you’re in debt or struggling to pay bills, a credit card might not be the best option right now.

In these cases, consider:

• Using debit cards, which avoid the risk of spending beyond your means.
• Opting for a personal loan with lower interest rates to pay off debts.
• Exploring financial education alternatives and reorganising your budget.
• Or even choosing a more affordable card, with no fees, and keeping close control over your spending.

Credit cards can be allies or villains — it all depends on how they’re used and managed.

Final tips: avoid surprises

• Always read the terms and conditions before signing up for a card.
• Use online comparison tools, but remember that some sites promote specific brands.
• Don’t be swayed by the appearance or the name of the card (platinum, black, etc.).
• Do a yearly review: check whether your card still meets your needs or if it’s time to switch
• Before applying, get to know the financial institution and whether it’s trustworthy.

Conclusion

Choosing the best credit card is a personal decision, based on your goals, habits, and financial profile. By understanding how you spend, how much you can afford, and which benefits truly make sense for your lifestyle, you can avoid unnecessary debt and turn your card into a valuable tool for financial planning.

Remember: the best credit card isn’t the most famous or packed with flashy perks — it’s the one that works in your favour, respects your budget, and supports your overall financial wellbeing.