In India, most of the financial institutions(including banks) offer credit cards to their customers. On top view, it seems that all the credit cards are same. But it is far from truth. Every credit card is introduced with purpose for specific group of customer such as movie lovers, salaried persons, frequent travelers, online shoppers. We have to select right credit card for our spending pattern to earn or save while using credit card. Before selecting the credit card for us, let us know the basic charges attached to the credit cards.
- Joining fees : Ranges from 0 to 4999
- Annual fees : Ranges from 0 to 9999.
- Renewal fee : Ranges from 0 to 4999
- Cash advance fee : 0% to 5% of withdrawal of money from ATM by credit card.
- Foreign currency transaction : 3.5% of money spend for foreign transaction.
- Interest Rate : Ranges from 35% to 45% / P.A
Most of the credit cards charges all the above fees to provide credit card facility to their customers. Before apply for credit card, know the fees of the credit card. If you get offer for credit card, ask about above fees and compare the fees.
Credit card does not come for free. Know credit cards fees.
Credit cards provides rewards to customers as cashback, points and discounts based on purpose of the credit card. Understand the credit card rewards. Rewards may be,
- Welcome Rewards Point
- Cashback on spending at supermarkets
- Rewards points when use your credit card to pay for Hotels, Dining, Airline ticket reservation.
- Discount on online spends – Amazon / BookMyShow / Cleartrip / Foodpanda / FabFurnish / Lenskart / OLA / Zoomcar
- Cashback on fuel at all petrol pumps in India.
- Renewal Reward points.
- Discount or one free movie tickets twice a month.
- Discount on uber/Ola cab service.
- Waiver of joining fees
- EMI offer on lump sum purchase in shopping.
Analyse credit card fees, rewards and it specific purpose,your spending pattern. Select your credit card.
Most of the time people search for best credit card and select the best credit card recommended by others. The best credit card of others may not fit for your spending pattern. Track your monthly expense and spending pattern. After understand the spending pattern, select the best card for you.
Don’t search for best credit card. Find the best credit card for you by your spending pattern.
Here emphasising on selecting the best credit card is to save by credit card. Selecting the wrong credit card, take money from your packet. For instance selecting the credit card with annual fees of Rs.4999 may be loss for seldom user or user with minimum spending on credit card.
You can save by credit card only by selecting the right credit card.
Credit cards for each spending pattern:
- Card for buying provision and hotels : Standard Chartered Manhattan Credit card.
- Card for online shopping : SBI Simply Click Credit Card, HDFC Diners Club Platinum Credit Cards
- Fuel and utility Bill Payments : Standard Chartered Super Value Titanium Credit Card, Citi Indian Oil Credit Card,Standard Chartered Super Value Titanium Credit Card.
- Card for frequent travellers : Citibank Premiermiles Card,Amex Gold Reward Credit Card, HDFC All Miles Credit Card.
- Card for movie tickets : ICICI CORAL Credit Card, SBI Elite Credit Card, RBL Titanium Delight Credit Card.
- Card for daily(maximum spending) users : citibank cashback credit card, HDFC Bank Money back credit card , SBI Elite credit Card.
- Card without annual fees : Standard Chartered Platinum Rewards credit card, ICICI Bank Platinum Chip credit Card
Use credit card maximum of 40% of your monthly income. It will be easy to payback the credit card on time if spending is less than 40% of your income.
The above list is few of credit card available in India. Lot of credit cards available and explore all the credit card. Understand credit card, credit card traps, compare the fees, rewards and select the right credit card for your spending pattern. Happy Earning Rewards.:)