Which are the best credit cards in India? Many people, particularly those who are employed, pose this query. The fact is that no one credit card is truly ideal for everyone. Each credit card is unique and provides a range of benefits.
At a time in history when inflation is eating away at your finances and prudent spending is the only way to prevent burning a bigger hole in your pocket, picking the right credit card is crucial.
Using a credit card could help you spend more wisely and save more money on everything from travel expenses to everyday items.
Discounts on hotel and flight reservations, cash back on online purchases, and reward points for fuel purchases are a few examples. There are numerous credit cards available in India. Finding the right one for you is harder than it seems, so we’ve put together this guide to assist you in making a decision.
First off, let’s talk about the basics: What are credit cards?
They essentially function as plastic cards that let you borrow money from your bank and repay it over time. Some people use them for convenience, so they don’t have to worry about paying interest on their purchases and can use them at any time, just like cash. Others favour them because they provide more flexibility than debit cards in terms of spending caps and fees.
Factors to Consider Before Opting for a Credit Card
There are a few things to think about when you’re preparing to apply for a credit card in India:
Credit Score
First, depending on the kind of card you want, different credit scores are needed. The higher the credit limit, the better if you’re looking for a card specifically for travel and shopping. However, if you don’t have much experience using credit cards, it might be a good idea to start with the one that’s easiest to get approved for.
Fees
Additionally, if you frequently carry a balance from month to month, fees can add up quickly (which is common with cards like this). It may become more challenging to pay off your balance each month if your interest rate is high, so make sure to shop around and compare rates. Verify the costs associated with the card you have selected.
Some credit cards provide cash back rewards or other benefits with yearly costs or interest rates. Others charge an annual fee even if the account itself has no other fees or interest rates. You must decide what suits you the best before enrolling.
Interest Rates
Third, keep in mind that interest rates are frequently higher when selecting your card. Your new credit card’s interest rate will vary depending on your location and how long you’ve had it. For the first few months that you use most cards, there are no fees or interest charges; however, after that, the APR (annual percentage rate) becomes regular. Depending on where you live and how long you’ve had the account, these rates range from 0% to 27%.
Features to Watch Out For Before Applying for the Best Credit Card in India
It’s a good idea to research the offers and features provided by your potential credit card provider in accordance with your needs before applying for a credit card in India. These can be very helpful in assisting you with money management.
1) How You Plan to Use the Card
You should first think about how you intend to use the credit card before applying for one in India. A credit card is a great way to establish your credit history and prove that you have a reliable source of income. A credit card can be used for anything, but you should be aware of its restrictions before applying.
2) Annual Percentage Rates (APRs)
Annual percentage rates are a further crucial element (APRs). These are the interest rates for loans and credit cards that banks and other financial institutions charge. The rate will change based on a number of variables, such as the amount you wish to borrow, the length of time it will take you to repay it, and the consistency of your income at any given time (for example, if there are other expenses such as rent or student loans that need paying every month).
3) Credit Limit
You don’t need to worry about having a high credit limit if you don’t intend to use the funds on the card frequently. However, if you do intend to use it frequently for purchases, your credit limit must be high enough to cover them without endangering your ability to pay the balance in full each month.
4) Rewards
Make sure reward programmes are worthwhile before choosing one. Some credit cards provide cash back or other benefits, but if all you want is more cash back on your purchases, those benefits might not be worth the hassle to redeem.
5) Penalties
You ought to research the repercussions of missing a payment. While some credit cards offer a grace period before you have to pay a charge, others charge you more if you pay late. It’s crucial to understand what fees your credit card will impose on late payments before applying for one.
The top 10 Best Credit Cards in India
1. HDFC’s Money Back Credit Card: Best for Beginners
The HDFC Money Back credit card is the best option for you if you are new to the world of credit cards. It’s a great way to start improving your credit score while saving money to use this card.
This cashback programme is a great way to get more value out of your purchases and make your money go further. Plus, with the option to redeem points for gifts or air miles, you can enjoy even more benefits beyond just saving money.
2. HDFC Diners Club Black Card: The Best Premium Credit Card
With unlimited access to international lounges and appealing bonuses, this credit card is the total package for high-end consumers. The ideal premium credit card is the HDFC Diners Club Black card, which has a credit limit of Rs. 4 lakh.
Additionally, the HDFC Diners Club Black card offers exclusive dining privileges and discounts at select restaurants, making it a great choice for foodies who enjoy fine dining experiences.
3. IndusInd Bank Pioneer Legacy card: best zero annual fee credit card
The IndusInd Bank Pioneer Legacy card has the highest reward rate among all lifetime free credit cards in India. You’ll be able to bag a 1% rewards rate on all your weekday expenditures (1 point per 100 spent) and an even better 2% on the weekend.
This makes it an ideal card for those who want to earn rewards without having to pay an annual fee. With its attractive reward rates, the IndusInd Bank Pioneer Legacy card is a great choice for those who want to maximise their savings while enjoying the benefits of a credit card.
4. SBI Card Prime is the best lifestyle credit card
SBI Card PRIME, hailed as the best credit for paying utility bills, includes a priority pass for four free international and eight free domestic airport lounge visits.
It includes welcome e-gift cards with a value of 3,000, the following brands can be purchased using this: Pantaloons, Yare, Bata/Hush Puppies, Shoppers Stop, etc. For cardholders with at least 3 lakhs in expenses, the annual fee is waived. Both the MasterCard World and Visa Signature versions of this card are offered.
5.American Express Platinum Travel Credit Card: The Best Credit Card for Travel
The American Express Platinum Travel Credit Card is the perfect pick for a frequent traveller. Along with complimentary lounge access, this card offers additional travel gift vouchers.
Both the MasterCard World and Visa Signature versions of this card provide exclusive travel benefits such as hotel upgrades, travel insurance, and concierge services to enhance your travel experience. With no foreign transaction fees, this card is a great option for international travellers.
6. Standard Chartered DigiSmart is the best credit card for online shopping.
Anyone who prefers online shopping should apply for a Standard Chartered DigiSmart credit card. On transportation, apparel, food, groceries, movie tickets, and cab rides, you can save up to 25%. This credit card allows you to make savings of up to 3,450 each month. For those who frequently shop online, the card is a great option because it also gives cashback and reward points for each transaction. Your transactions will be secure and protected thanks to the cards integrated secure online payment system.
7. SBI Student Plus Advantage Credit Card: best for students
The SBI Student plus Advantage credit card is an option for college students who want to keep track of their spending. Customers who have taken out a student loan with SBI are the only ones eligible for this card. A fixed deposit can be used to secure your card, making it a secured credit card without an annual fee.
In addition to helping students manage their expenses, the SBI Student plus Advantage credit card offers benefits such as reward points on every transaction and discounts on partner brands. It also comes with a low interest rate and flexible repayment options, making it a great choice for students who are just starting to build their credit history.
8. Kotak Mahindra Essential Platinum Card: best for grocery shopping
We spend a significant portion of our monthly budget on groceries. According to a survey, the average Indian’s grocery budget accounted for close to 28 percent of their total spending.
When it comes to grocery shopping, the Kotak Mahindra Essential Platinum credit card is your best cashback option. It is the best option because you receive 10% cashback on all grocery and retail purchases. Therefore, if you make at least 1,500 in grocery purchases, this card is your best choice.
This can help you save a significant amount of money on your grocery expenses. Additionally, the card also offers other benefits, such as fuel surcharge waivers and reward points on other transactions.
9. Axis Pride Signature is the best credit card for NRIs.
Are you an NRI in need of a credit card that offers great value on all your spending? The Axis Pride Signature is the best available, so stop searching. For the first year, there are no fees associated with using this credit card. The annual fee of 500 is waived for the following years if you spend a minimum of 40,000 in one year.
Additionally, the Axis Pride Signature credit card offers attractive rewards and cashback on various categories, such as dining, shopping, and travel, making it a great choice for frequent spenders. With an easy online application and approval process, getting this credit card is hassle-free and convenient.
10. ICICI’s Business Advantage Black Card is the best business credit card.
One of the top business cards available is the Business Advantage Black Card from ICICI. The purpose of this special card is to protect businesses. On domestic and foreign purchases, you could get up to 1% cashback. This card can be used for everything, including air travel, car rentals, and business services like accounting, marketing, and advertising.
Additionally, the card comes with a host of other benefits, such as complimentary airport lounge access, fuel surcharge waivers, and purchase protection insurance. With its comprehensive coverage and rewards programme, the ICICI Business Advantage Black Card is a great choice for businesses looking to streamline their expenses and maximise their savings.
FAQs on the Best Credit Cards in India
Q. Which is the best credit card for entertainment benefits?
Ans. There are several credit cards that offer a wide variety of entertainment benefits. However, there are a certain set of cards that are solely entertainment-oriented. They offer the best benefits when it comes to entertainment, along with a few features across other categories as well. The Kodak PVR Gold Credit Card, the HDFC Money Back Credit Card, and the Axis Bank Neo Credit Card are among the top credit cards for entertainment expenses.
Q. What are the best credit cards available for a wide range of dining benefits?
Ans. Most cards that are mentioned above come with a set of dining privileges that will be given to you while you are dining out. There are also certain cards that offer discounts and cashback while ordering online. The HDFC Bank Diners Club Credit Card and the Induced Bank Platinum Credit Card are some of the credit cards that offer best-in-class dining benefits.
Q. Will the lounge benefits with these top credit cards be free of charge?
Ans. There is a certain number of lounge visits allotted to you with your credit card that are free. However, after exceeding the maximum number of visits, you will have to pay a certain amount as a fee to use the lounge at domestic and international airports. The fee is generally the same for most credit cards. It is advised that you read the terms and conditions for domestic and international lounge access before using the card.
Q. Do top credit cards have higher annual fees?
Ans. No, there is a range of credit cards offered by different banks that offer many benefits for a nominal annual and joining fee. Some of the credit cards are HDFC Bank Money Back credit cards, etc.
Q. What is the minimum salary required for a credit card?
Ans. The minimum salary required to apply for a credit card varies from one bank to the next. There are also credit cards offered for first-time applicants who may not have a higher income but can get a credit card with a lower credit limit depending on the various factors checked by the bank.
Q. How do you redeem the benefits offered by these credit cards?
Ans. For the reward points, you can visit the website of the bank and redeem the points that have been accumulated on your card. The reward points can be redeemed to avail a wide range of products and services across various categories through the partnerships the bank has with other companies. Benefits such as movie tickets, dining, etc. will be automatically given to you once you use the credit card. However, it is important to know the terms and conditions of the benefits that come with your card.
Q. What is a cash advance?
Ans. A cash advance is when you withdraw cash from your credit card at an ATM or bank. This typically comes with a higher interest rate and fees than other credit card transactions.
Q. What is a balance transfer?
Ans. A balance transfer is the process of moving an outstanding balance from one credit card to another. This is often done to take advantage of a lower interest rate or promotional offer.
Q. What happens if I don’t pay my credit card bill on time?
Ans. If you don’t pay your credit card bill on time, you may be charged a late fee and interest on any unpaid balance. Your credit score may also be negatively impacted.
