Choosing a credit card in India is no small feat. With a staggering array of over 400 personal credit cards, each offering a unique blend of rewards, cashbacks, and exclusive benefits, making an informed decision can often turn into a perplexing ordeal. At 1 Finance, we recognise the complexity and the magnitude of this decision.

The dilemma isn’t just about choosing a credit card; it’s about selecting one that aligns seamlessly with your spending habits and lifestyle preferences.

With our credit card scoring model we wanted to make that decision-making as smooth as possible for you. Here’s a detailed overview of our methodology.

Our Methodology for Scoring Credit Cards

  • Driven by Data, Guided by Experience:

Our methodology isn’t just about numbers; it’s about understanding the nuances of consumer behaviour and financial needs. We’ve delved deep into the credit card market, analysing each card’s unique offerings, to ensure our evaluations are comprehensive and relevant. This is particularly vital when considering the rewards offered by credit cards.

  • Beyond the Surface – The Features that Matter:

While many focus on the obvious perks, we dig deeper. From daily expenditure patterns to embedded benefits and even the fine print of fees, we ensure that every aspect is considered. After all, it’s the subtle differences that often have the most significant impact, something evident when you consider strategies for optimising credit card usage.

  • Tailored to Your Lifestyle:

We understand that everyone’s financial journey is unique. That’s why we’ve categorised credit cards based on their primary usage – be it groceries, dining, travel, or luxury. This ensures that the card you choose aligns perfectly with your lifestyle and spending habits, much like how one would go about selecting the perfect credit card.

  • A Dynamic Framework for a Dynamic Market:

The credit card industry is ever-evolving. Our evaluation framework is designed to be flexible, allowing us to assign varying weights to different parameters based on their relevance to specific card categories. This dynamic approach ensures our evaluations remain relevant, no matter how the market changes.

  • Keeping Our Finger on the Pulse:

The credit card market is dynamic, with new cards and features being introduced regularly. Our commitment to you goes beyond just this tool. We’re constantly monitoring the market, ensuring that our evaluations and recommendations are always up-to-date.

With this approach, we aim to provide clarity in a complex market, helping you make informed decisions that align with your expenditures and lifestyle.

Purpose-Driven Selection: Making Your Card Work for You

Every individual has unique spending habits, and not every card caters to all. We’ve simplified this selection by categorising cards based on their primary usage. Whether you’re a food enthusiast, a frequent traveller, or someone who loves retail therapy, there’s a card tailored for you.

To further refine your search, it’s essential to understand how our scoring model responds to your preferences. While our overarching goal is to spotlight cards with less stringent eligibility criteria and optimal benefits for their fees, the cards that emerge as top contenders differ based on whether you’re focusing on a single purpose category or multiple on our credit card scoring page. Let’s delve into these nuances.

What happens when you choose a single purpose?

Tailored Rewards: Selecting a specific category, be it ‘Groceries’ or ‘Travel’, brings to the forefront cards that shine in those areas. So, if you’re a frequent traveller or your grocery bills stack up, the cards we spotlight ensure you’re rewarded where you spend the most.

Beyond the Primary Benefit: While the chosen category takes centre stage, these cards aren’t one-trick ponies. They come with added perks, from bundled insurance to lounge access and milestone benefits, ensuring a holistic card experience.

Everyday Essentials, Thoughtfully Addressed: For regular outlays like ‘Groceries’, ‘Transportation’, and ‘Entertainment’, we focus on cards that offer rewards on those spends without an exorbitant fee. After all, for daily spends, value is key.

Enhancing Lifestyle Choices: For categories that often involve a larger share of your wallet, such as ‘Food and Dining’, ‘Travel’ or ‘Shopping’, the cards we spotlight ensure those spends are rewarded well. However, it’s crucial to note that while these cards bring you enhanced rewards, they might come with a higher fee, reflecting the premium lifestyle benefits they offer.

Every individual has unique spending habits, and not every card caters to all. We’ve simplified this selection by categorising cards based on their primary usage. Whether you’re a food enthusiast, a frequent traveller, or someone who loves retail therapy, there’s a card tailored for you.

And when you choose multiple purposes?

Diverse Rewards for Diverse Spends: When you select multiple spending categories, the cards that come into focus are those that offer robust rewards across all the chosen areas. These aren’t just specialists in one domain; they excel across the board, ensuring you’re rewarded well for every selected purpose.

All-Rounder Benefits: Beyond the rewards, these multi-purpose cards too come packed with a range of other advantages. From bundled insurance to lounge access and milestone benefits, they ensure a comprehensive card experience that caters to diverse needs.

Decoding Our Scoring Parameters: A Glimpse into Our Evaluation Criteria


Here’s a breakdown of the comprehensive set of parameters we’ve identified to understand the features and benefits of credit cards in India:

Rewards on Household Expenses
  • Groceries: Household food items purchased in-store or online
  • Transportation: Daily commute expenses like fuel and public transportation
  • Utilities: Basic utility bill payments such as electricity, gas, and water
Rewards on Lifestyle Expenses
  • Clothing and Fashion: Personal clothing and fashion-related expenses
  • Technology and Electronics: Electronic devices and gadgets
  • Food and Dining: Eating out or ordering food
  • Entertainment: Movies, concerts, and sports events
  • Travel and Leisure: Airfare, hotels, and car rentals
Additional Benefits
  • Welcome Benefits: Initial rewards like cashback, vouchers, and subscriptions
  • Airport Lounge Access: Complimentary access to select domestic/international airport lounges
  • Milestone Benefits: Rewards for reaching yearly spending milestones
  • Luxury Benefits: Complimentary golf rounds/lessons
  • Rewards Conversion Rate: Best rate for redeeming rewards
  • Joining Fee: Upfront fee charged in the first year
  • Annual Fee: Yearly fee from the second year onwards
Repayment Terms
  • Finance Charges: Interest rate on the borrowed amount
Bundled Insurance
  • Life Insurance: Air and personal accident cover
  • Health Insurance: Emergency hospitalisation cover (domestic/overseas)
  • Travel Insurance: Baggage loss/delay and loss of passport/tickets/personal documents
  • Credit Liability Cover: Lost card/fraud liability cover & credit shield
Eligibility Criteria
  • Annual Income: Minimum income needed to apply for the card


Fee Segments: Tailoring Your Choices to Your Budget


In our pursuit to make credit card selection a breeze, we’ve demarcated them into distinct fee segments, ensuring there’s something for every budget and every spender.


  • Entry-Level: Ideal for those new to credit cards or seeking a straightforward option. These cards, with annual fees less than ₹ 750, offer simplicity without compromising on essential benefits. If you’re new to this, understandingthe rewards and risks associated with credit cards can be beneficial.

  • Mid-Tier:Balancing cost with value, these cards, priced between ₹ 750 and ₹ 3500, cater to a broad user base. They offer a blend of features suitable for most, ensuring you get more bang for your buck. As you navigate this segment, it’s worth optimising your card usage to maximise benefits.

  • Elite: For the discerning spender, these cards, with fees between ₹ 3500 and ₹ 10000, bring exclusive perks. But with great power comes great responsibility, so it’s essential tounleash the full potentialof these cards.

  • Elite Plus: The crème de la crème, with fees exceeding ₹ 10000, these cards offer unparalleled premium benefits. From concierge services to high reward points, they’re tailored for those who demand the best. If you’re considering this segment, ensure you’re selecting the perfect cardthat aligns with your lifestyle.

All fees mentioned are exclusive of GST. Typically, pricier cards have higher income eligibility criteria. Ensure you’re making an informed choice, balancing fees with benefits.

Finding Your Perfect Credit Card Balance


The vast variety of credit cards often raises a pertinent question: How many is too many? While the 1 Finance scoring model is designed to match you with cards that resonate with your spending habits and desired benefits, determining the ideal number of cards is a more nuanced affair.

It’s not merely about accumulating cards; it’s about striking a balance. Your expenditure patterns, annual expenses, financial behaviour, and creditworthiness all play pivotal roles in this decision. For some, a single card suffices, efficiently catering to all their needs. For others, a judicious mix of cards, each tailored to specific spending categories, might be the way forward.

To truly harness the power of credit cards, it’s essential to understand their potential and limitations. And for insights tailored to your unique financial circumstances, consider getting your holistic financial plan with 1 Finance. After all, in the world of credit, knowledge is not just power; it’s the key to unlocking rewarding experiences.


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