With cashless transactions becoming the norm, credit cards are more of a necessity today. But when it comes to choosing the best credit card as per one’s needs, multiple card providers, numerous financial terms, coupled with terms and conditions in fine print are more than enough to intimidate anyone. However, once the basic working of a credit card has been understood, its benefits outweigh the intimidation. In fact, there is little need to fret, and here’s a comprehensive guide to help you choose the best credit card in India. But first, one must have some idea as to how credit cards work.
Working of a credit card
In a nutshell, a credit card allows one to make payments with money that is considered to be borrowed from the bank, and the customer is to pay back the money by the end of a fixed billing period, failing which the outstanding amount is carried forward with an added interest. However, the biggest perk lies in the fact that no extra money is charged during the billing cycle, and as a result, one is allowed to use the bank’s money free of cost for personal expenses with the help of a credit card. And things get even better with the rewards that an HDFC, Axis Bank or RBL credit card can offer for different transactions
So, how do credit cards vary from each other?
Different credit card companies have different criteria regarding age, income, and credit scores of customers. They also have different interest rates, annual and joining charges, and late penalties. But the most important variation is in the perks offered for different transactions. Hence, it is natural that the perfect credit card is the one with minimum requirements as per income and other fees, with the lowest possible interest rates and great rewards in areas where the customer might use it the most. In fact, highly rewarding cards like an RBL credit card, or an HDFC card might end up saving money in thousands when used correctly. Amongst the major sectors where cards are known to offer rewards, here are the major three.
Travel: For frequent fliers, this is the category to watch out for, as well-performing cards in this category promise to save a lot of money that would otherwise have been spent on air tickets. These cards come with benefits like lounge access, accumulation of air miles, priority check-in at airports, additional baggage allowance, etc. HDFC, one of the biggest card providers in India, has some really good options here, including the HDFC Superia Card and the JetPrivilege HDFC Platinum Card, among others. The other good options are Axis Bank Miles and More World Credit Card, and Axis Bank Vistara Signature Credit Card.
Shopping: For customers planning to use their cards for retail purposes, the rewards and benefits provided for purchases are crucial. The ones that provide cashback, rewards, and discounts on online purchases are the ones that will surely save a lot of money. Hence, cards like RBL Bank Shoprite Credit Card, ICICI Amazon Pay Credit Card, and Axis Ace Credit Card deserve some consideration.
Fuel: Cards that save money on the purchase of fuel are often the most useful ones, given the fact that we do not dine out or shop as frequently as we refuel our cars. The best cards in this category include the RBL Platinum TravelEasy SuperCard, Indian Oil Citibank Platinum Credit Card, and Indian Oil HDFC Credit Card.
With all of this information at one’s disposal, it is safe to say that choosing the right credit card shouldn’t be too intimidating, given the amazing benefits they bring with them when chosen and used optimally.
The Bajaj Finserv RBL Bank SuperCard, with the power of 4 cards in 1, is one of the most innovative credit cards available. The card lets you withdraw cash from an ATM at no interest for up to 50 days. As a SuperCard member, you can avail of exclusive benefits like attractive EMI options and discounts from partner stores.