Choosing the right credit card can be a daunting task, given the plethora of options available in the market. To simplify this process, 1 Finance has developed a comprehensive Credit Card Scoring and Ranking system designed to help you find a card that aligns with your spending habits and lifestyle preferences.
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Understanding the 1 Finance Score
The 1 Finance Score is a quantitative evaluation that assigns each credit card a score out of 100. This scoring system assesses various parameters to ensure that your decision is backed by data-driven, unbiased analysis. The scores are colour-coded for easy interpretation:
- Green: Cards that offer the most value for your money.
- Yellow: Cards that provide a reasonable balance of benefits relative to their fees.
- Red: Cards that might not offer as much value compared to others.
Methodology Behind the Scoring
1 Finance employs a meticulous approach to evaluate credit cards:
- In-depth Market Research: Analysing the vast landscape of credit cards available in India to understand their unique features and offerings.
- Feature Shortlisting for Evaluation: Identifying essential features such as daily expenditure patterns, embedded benefits, joining/annual fees, and eligibility criteria.
- Purpose-Driven Categorisation: Classifying cards based on primary usage purposes like groceries, fuel, dining, or luxury to align with various lifestyle needs.
- Crafting a Detailed Evaluation Framework: Assigning weights to shortlisted parameters, varying across different card categories to ensure a nuanced evaluation.
- Rigorous Card Evaluation: Assessing each card against defined categories to differentiate between more and less beneficial options.
- Continuous Market Monitoring: Regularly updating the tool to reflect any changes in card features or the introduction of new cards.
Key Scoring Parameters
The evaluation encompasses a comprehensive set of parameters, including:
- Rewards on Household Expenses: Groceries, transportation, and utilities.
- Rewards on Lifestyle Expenses: Clothing and fashion, technology and electronics, food and dining, entertainment, and travel and leisure.
- Additional Benefits: Welcome benefits, airport lounge access, milestone benefits, luxury benefits, and rewards conversion rates.
- Fees: Joining fee and annual fee considerations.
By utilising this structured approach, 1 Finance aims to provide you with unbiased, data-driven insights, enabling you to choose a credit card that best suits your individual needs and financial goals.
For a more detailed understanding, you can visit their Credit Card Scoring and Ranking page.
