IndiaLends Advisory

By IndiaLends Advisory

Feb 04, 2019

Which is the Best Credit Card for You?


You would have definitely received a sales call from a bank trying to sell you a credit card with all those amazing benefits and offers. But does every credit card benefit you? The answer is yes and no. The best credit card for you would depend on how you want to use the card.

Owning a credit card could prove to be a life saver or do damage to your financial statements if not chosen wisely.  So before you choose a card here are few questions you should answer that will help you know which is the best credit card  for you.

→ Will you use your credit card mostly for shopping, travel and leisure?

There are credit cards designed especially for people who travel a lot or like to go on online shopping sprees. Shopping credit cards or travel credit cards are specialized credit cards that reward you with points. They also come with cash back offers each time you shop or use your credit card for travel.  The points you gather can be redeemed at various outlets. Do remember that the reward points or cash back programs differs from bank to bank.

For example:  The ICICI Coral credit card with an annual fee of 500/- is one of the best credit cards for online shoppers. The benefits of this card are many with 50% reward points on every online purchase and 4 reward points for every 100 rupees spent in restaurants and supermarkets. With this card you would also get 15% discount on dining bills from 800 restaurants across India. Applicants for this card should earn a minimum salary of the 45,000 per month.

Another great option for  a shopping credit card is the SBI Simply Click credit card. With Amazon India, Bookmyshow, Foodpanda, Lenskart, FabFurnish, Cleartrip and Ola Cabs as partners, this is another one that can be considered in the league of the best credit cards for online shoppers. You receive 10 times the reward point on purchases from collaborated brands. It also has an interest free credit period of 20 to 50 days.

For those of you that like to travel, wouldn’t it be great to enjoy the same experience at 33% lesser costs? With the HDFC Diners Club Black credit card you could save 33% of dining bills and flight tickets as you get 10 times reward points on spends with partner brands.    

Related Article: How do credit cards work? All you need to know

→ Are you looking to up your credit score with your credit card?

Your credit score determines whether banks would give you a credit card or loans in the future.  You could opt to improve your credit score by applying for a credit card and increase your credit limit.

For example: The ICICI Instant Platinum credit card is ideal for those looking to rebuild credit score. The only eligibility criterion to apply for this credit card is a fixed deposit of 20,000 rupees at ICICI bank.  There is no annual fee for this credit card and some of the benefits on owning this card include a 15% discount at 800 restaurants across India and 2 payback points for every 100 rupees you spend.

Related Article: Learn the secret of never paying interest on a credit card.

→ Are you a Student?

If you are a college student, a credit card might go a long way in meeting your financial requirements.  Student credit cards have a zero annual fee, low interest rates and you still can earn reward points making it a best credit card option for beginners.  

You are eligible for a SBI Student Plus Advantage Card if you have availed State Bank of India’s educational load.   If your purchases cross 35,000 rupees in a year then your annual fee is waived off.

For students studying abroad the ICICI Bank Student Travel card or the HDFC Forex Plus card are a must have. Both these cards come with a variety of other benefits.  

The ICICI Bank Student Travel Card can be used to pay university fees online and also withdraw cash from any MasterCard ATM. This cardholder gets a free membership of the International Student Identity card and therefore you would be eligible discounts. The card also comes with a comprehensive travel insurance and merchant offers and discounts in 130 countries.   

Looking for More: Apply for a credit card and get instant approval.

Choosing a credit card that works for you depends on the purpose for which you intend to use the card. Every card comes with different benefits so make sure to read the features and benefits each card has to offer before you make your choice.