Credit cards have become a part of the daily money management system in this digitally advanced world. Ranging from online shopping, traveling, or even paying out small expenses, credit cards ensure convenience, rewards, and many more financial privileges. However, it seems there are too many options, thereby making it confusing to choose the best credit card in India. In this blog, we will break down everything you should know about credit cards in India-from the types available to the best options for 2024.
Why Use a Credit Card?
A credit card has quite an array of benefits that can be put to good use when wielded wisely. That being said, here are all the reasons why one would want to get hold of a credit card:
Ease of Payment: A credit card allows easy payments both online and offline; there’s no need for carrying any cash, with just some clicks making one’s purchase.
Rewards and Cashback: This is in addition to those that can offer reward points and also cashback. Of course, there are still discounts from purchases, through which they can travel, buy stuffs, or as a reduction on statements.
Financial flexibility: a credit card is useful when you want to make some big purchases, and pay them back in installments. This offers a lot of financial flexibility.
Proper handling of a credit card builds your credit history and improves your credit score, making it easy to obtain loans later.However, this has to be done responsibly because mismanagement of credits leads to high-interest charges and debt.
Types of Credit Cards Available in India
1. Rewards Credit Cards: These cards give you points for every purchase you make, which can be redeemed for products, vouchers, or even travel.
2. Cashback Credit Cards: As the name itself suggests, these cards give you cashback on your purchases. They are a great option if you prefer direct benefits rather than rewards points.
3. Travel Credit Cards: It’s an excellent credit card if you’re an avid traveler, and some credit cards are offering the best of the air miles, access to airport lounges, and travel insurance.
4. Low-interest Credit Cards: If you carry a balance on your credit card regularly, you can consider the credit card that offers a lower interest rate.
5. Luxury Credit Cards: Luxury cards that carry benefits like concierge services, access to luxury lounges, and many more. These are generally marketed to those who have higher spending capacity.
Top 5 Best Credit Cards in India for 2024
1. HDFC Bank Regalia Credit Card
Annual Fee: ₹2,500
Benefits:
•2 reward points for every ₹150 spent.
•Complimentary airport lounge access (domestic and international).
•1% fuel surcharge waiver.
•Insurance coverage for air accidents and medical emergencies.
Best For: Frequent travelers and high spenders.
Eligibility: Minimum annual income ₹6,00,000.
2. SBI Card Elite
Annual Fee: ₹4,999
Benefits:
•5X rewards on dining, movies, and departmental store purchases.
•Complimentary airport lounge access (up to 6 times annually).
•Exclusive access to premium events and experiences.
•Welcome benefits including vouchers worth ₹5,000.
Best For: People who spend a lot on dining, entertainment, and shopping.
Eligibility: Minimum annual income ₹6,00,000.
3. ICICI Bank Platinum Chip Credit Card
Annual Fee: ₹499
Benefits:
•2 reward points for every ₹100 spent.
•Earn 500 bonus reward points on spending ₹30,000 or more in a billing cycle.
•1% fuel surcharge waiver.
•Discounts on movie tickets and dining.
Best For: Budget-conscious individuals who want to earn rewards on daily expenses.
Eligibility: Minimum annual income ₹3,00,000.
4. Axis Bank Vistara Signature Credit Card
Annual Fee: ₹3,000
Benefits:
•Earn 1,000 air miles on the first transaction
•Earn 3,000 bonus air miles after spending ₹1,50,000 in the first 90 days
•Earn 6,000 air miles after an annual spend of ₹3,00,000
•Airport lounge access free
Best For: Frequent flyers who want air miles and more travel benefits
Eligibility: Minimum annual income ₹6,00,000
5. American Express Platinum Travel Credit Card
Annual Fee: ₹5,000
Benefits:
•2,000 membership reward points on spending ₹25,000 or more in a month.
•1.5% cashback on flights and hotel bookings.
•Complimentary airport lounge access.
•Annual benefits like hotel stays and flight discounts.
Best For: Frequent travelers looking for luxury perks and rewards.
Eligibility: Minimum annual income ₹6,00,000.
Things to Consider Before Applying for a Credit Card
Annual Fees and Interest Rates: Ensure that you know the annual fee on your card and the amount of interest that is charged on rollovers.
Rewards Programs: Choose a credit card whose rewards program relates to the kind of expenditure you do. For example, if you travel widely, opt for a card that has the travel reward.
Eligibility Criteria: The eligibility criteria for different credit cards differ. The minimum income, good credit score, and age may be necessary.
Other Perks: You can also look at credit cards that provide benefits such as cashback, discounts, airport lounge access, or insurance.
Customer Service: Good customer service through a credit card can be helpful when you want to make queries.
How to Apply for a Credit Card in India
1. Select the card according to your requirement (travel, rewards, cashback, etc), select the best card.
2. Check eligibility so that you fulfill all the requirements, income, age, and credit score.
3. Identification proof, such as Aadhaar or passport, and address proof, like electricity bill or bank statement, and income proof, like salary slip or ITR.
4. Apply online by logging in at the website of the card bank or downloading the app from the provider of the card.
5. If approved, within 7-10 working days, you receive your card.
How to Utilize Credit Cards the Best
•Pay before due dates to not be charged late fees as well as interest.
•You can also earn reward points by utilizing your card for all kinds of purchases.
•Redeem in travel or products that would yield the most value.
•Don’t keep high balances; pay off your balance in full and avoid interest charges. You should have a healthy credit score.
Credit Card Mistakes to Avoid
•In order to avoid owing tons of money on your high-interest debt, pay more than the minimum balance when possible.
•Account for hidden fees, which include late charges, annual fees, and fees for foreign transactions.
•Having maxed-out credit will put your credit score in trouble.
The best credit card in India is purely a matter of individual need-be it rewards, cashback, or travel benefits. The above cards are some of the best for 2024, with excellent benefits, low fees, and flexible rewards programs. Apply only after you have taken a careful consideration of your spending habits, eligibility, and features that matter the most to you. Use your card responsibly, and you can have all the benefits credit cards offer.