Payment is a fundamental economic activity involving a buyer and seller. Credit cards that allow consumers to buy something on credit and the flexibility to repay the bank/card issuer within a reasonable timeframe revolutionized the payment system worldwide. Credit cards which began life in the US with Diners Club in 1950 and American Express in 1971, entered India with Diners Club credit card making its debut as early as 1961. This blog post will fill you in on all you need to know before availing of a credit card and also list the 10 best credit cards in India for 2024.
Essentially, a bank issues credit cards to customers, enabling them to make purchases subject to a credit limit set by the issuer. The credit limit depends on many factors such as the customer’s income and credit score.
Besides offering safety and convenience, credit cards offer other benefits such as points, receivables, and gifts. Deciding on the best credit card involves careful analysis of several factors like charges/fees, annual percentage rate (APR), and bonus benefits. Therefore, you should tread carefully to choose the best credit card in India that meets your requirements.
The 10 top credit cards in India
In fact, users are spoilt for choice as the market offers different varieties of credit cards. The best credit cards in India provide consumers the flexibility to repay, not to mention an assortment of rewards such as redemption of accumulated points, cashback, free vacation, and attractive discounts on shopping.
| Credit Card | Best for |
| RBL Bank Savemax Credit Card | Shopping and Rewards |
| Cashback SBI Card | Cashback, Reward Points |
| HDFC Millennia Credit Card | Cashback for Millennials |
| HDFC Regalia Gold Credit Card | Premium Rewards and Lifestyle |
| HSBC Platinum Credit Card | Lifestyle Benefits |
| Amazon Pay ICICI Credit Card | Advantage Amazon Prime Members |
| Standard Chartered Platinum Rewards Card | Shopping and Rewards on Fuel and Dining |
| Axis Bank ACE Credit Card | Cashback, Saving on utility bills |
| IndusInd Bank Aura Edge Credit Card | Travel and Shopping |
| Yes Bank Finbooster Credit Card | Shopping and Reward Points |
Factors to consider before opting for a credit card
Selecting the ideal credit card is tough given the wide choices available. Choosing the best credit cards in India depends on your financial requirements, while interest rates, fees, and other features should also be considered. Let us understand the main factors one should consider before opting for a credit card.
Credit Score
Among all credit card attributes, credit score is the most important factor that determines your eligibility to obtain a card. A higher score might fetch you attractive rewards and significantly lower interest rates. Ensure that your credit score satisfies the standards of the card issuer before applying.
Fees
Maintaining a credit card involves costs, including annual, late, and international transaction fees. It is important to understand these charges and how they could impact your total expenditure. Some credit cards don’t charge annual fees, but it is important to compare other expenses with the perks and services provided.
Interest Rates
The cost of credit card debt is greatly influenced by interest rates, often known as annual percentage rates or APR. By studying the specifications of interest rates on your credit cards, you will be able to see if you can afford to miss the payment cycle and pay with interest. If you intend to buy high-value merchandise and pay for the product in installments, you should apply for credit cards with 0% introductory APR.
Features to watch out before applying for the best credit card in India
Researching the features and incentives offered by your potential credit card provider is a must when you apply for the best credit card in India.
How you plan to use the card
You should have a clear idea of how you intend to use a credit card before applying for one. Try to find credit cards with low-interest charges. If you are a frequent traveler, you may prefer credit cards that include airport lounge access or journey coverage. For example, a credit card with cashback for food, petrol, and groceries, might be more suitable for everyday use.
Annual Percentage Rates (APRs)
While comparing top credit cards in India, the annual percentage rate (APR) should be considered. You will have to repay your credit outstanding with this interest rate if you default on your payment. APRs on cards might be fixed or variable. Less interest is paid on outstanding amounts when the APR is lower.
Credit Limit
The credit limit is the upper limit or the highest amount you can borrow using the best credit cards in India. If you need flexibility for emergencies or expect to incur major expenditures, you would require a higher credit limit. However, if not handled correctly, it may also result in overspending. Make sure the cap fits your spending patterns and level of financial restraint.
Rewards
Before choosing your credit card, ensure that it has reward programs that are in sync with your spending habits. You get cashback for your purchases and can use points earned with point-based cards for merchandise, vacation, or gift cards. Watch out for any limitations or restrictions on earning awards, as well as redemption alternatives and incentive systems.
10 best credit cards in India 2024: Overview and comparison of credit cards
The benefits offered by each credit card may vary based on usage and spending limits. Discover the top 10 credit cards in India that can accommodate a range of needs and lifestyles, whether you’re a frequent traveler, shopper, or cashback seeker.
RBL Bank BankBazaar SaveMax Credit Card
There are no yearly fees with the RBL Bank BankBazaar SaveMax Credit Card since it offers lifelong free membership. You can earn five times the number of points on food items consumed, limited to 1,000 points per month. Also, stand to earn 1 additional point for every 100 rupees spent on each purchase. It should be noted that this offer excludes spending on government services, utilities, railroads, and insurance services.
Cashback SBI Card
Although Cashback SBI Card is a newcomer to the reward credit card market, online buyers have embraced it wholeheartedly. With no limits on merchants, the card offers a 5% reward on online purchases. Within two days of the bill’s creation, the cashback gets automatically transferred to the card. Additionally, this card offers a 1% reward for offline purchases.
HDFC Millennia Credit Card
For consumers who look for an enticing cash-back rate, HDFC Bank Millennia Credit Card looks like a good option. It offers very good value-back for regular spending and online buying with the main merchants. Receive a 5% cash back on all products that are bought online. It has a joining fee of Rs. 1,000 and an annual fee of Rs. 1,000. However, the annual fee would be waived if you spend Rs. 1 lakh in a year.
HDFC Regalia Gold Credit Card
Travel is one important aspect of life and HDFC Regalia Gold Credit Card is a good choice. Free Club Vistara and MMT memberships and flight vouchers as milestone perks, the card enables you to redeem prizes against air miles. After four retail transactions with the card, you receive a free Priority Pass membership.
HSBC Platinum Credit Card
There are no joining or yearly fees for the HSBC Visa Platinum Credit Card. Gain up to Rs. 3,000 in annual fuel savings, 5X points on purchases above Rs. 400,000, and the option to convert air miles on major airlines. Other benefits include emergency card replacement, insurance coverage, and no liability for lost or stolen cards.
Amazon Pay ICICI Credit Card
For users who are big-time shoppers on Amazon, Amazon Pay ICICI credit card works best because one can get a cashback of 5% when buying products from Amazon. The best thing about this credit card is that it is free of yearly fees. Returning customers who are not Prime members can get 3% cashback on the products they purchase from Amazon, whereas Prime members get 5% of the cash.
Standard Chartered Platinum Rewards Card
Unlike other credit cards, this particular credit card does not come with annual membership or joining fees; thus, it counts as one of the best credit cards in India for salaried persons. The card is especially advantageous for first-time applicants. They are offered 1,000 bonus points for spending within the first 60 days 5x points for every point spent on meals and petrol and 1 point for other purchases.
Axis Bank ACE Credit Card
Axis Bank ACE Credit Card has several features, including 5% cash back for paying bills and recharges through Google Pay and 4% on Swiggy, Zomato, and OLA. Annually, product card holders are offered rebates for food and exemption on fuel fees, plus four visits to airport lounges for free. It’s a useful and lucrative option for regular usage because purchases may be converted into EMI and there are no joining or yearly fees.
IndusInd Bank Platinum Aura Edge Credit Card
With this credit card, you get full insurance coverage, which offers monetary security during erratic travel. Enjoy the freedom to convert expenses into EMI at a competitive interest rate. With a 1% waiver on fuel and train fare, the card offers even more financial advantages, increasing value for holders.
Yes Bank Finbooster Credit Card
The card does not charge an annual fee. You also get a 1% waiver on the fuel surcharge on fuel transactions between Rs. 400 and Rs. 5,000. There is no cap on reward points, with 3x reward points on grocery and apparel purchases made online, plus 2 reward points for every Rs. 200 spent on retail purchases, except fuel expenses.
Credit cards for salaried individuals
Credit cards provide various advantages for salaried individuals.
Features like rewards on regular purchases, exemptions on fuel surcharges, and special access to travel and dining offers are usually available with the best credit cards in India for salaried persons. HDFC Regalia Credit Card, for instance, is renowned for its reward points on retail purchases, lounge access, and travel advantages. These credit cards are ideal for monitoring expenses and collecting rewards simultaneously due to their flexible repayment options and reasonable interest rates.
Best credit cards for students
A student credit card is intended to cater to the financial needs of college students. These consist of all the typical attributes of a credit card, such as interest-free periods, discounts, and reward points. Prominent card providers offer student credit cards to applicants who are eighteen years of age.
Typically, student credit cards are valid for five years from the date of issuance, whereas conventional credit cards have a three-year validity term. Students find it simpler to keep their student credit cards active since they typically have affordable yearly fees and no membership fees. Students might find using the SBI Student Plus Advantage Credit Card convenient.
Cards for travel
Travel credit cards are intended to provide advantages on travel expenses and offer substantial savings on airfare and hotel reservations for frequent travelers. Through free airline tickets, air miles, discounts with well-known travel companies, free lounge access, travel insurance, and other offers, users get to save significantly
Many options are available in this category, ranging from cards co-branded with well-known airlines or travel websites to cards that provide significant discounts in the form of rewards or air miles. For instance, access to airport lounges, free joining and renewal bonuses, and free Priority Pass program membership are all available with the Air India SBI Signature Card.
Risks of opting for a credit card in India
Though credit cards can come in handy if used prudently, a credit card comes with its share of risks. Due to high interest rates on outstanding amounts, poor money management might land you in a debt trap. Due to the easy availability of credit, individuals often spend above their financial situation, leading to financial distress. Fraud through identity theft or misuse of credit cards for unauthorized purchases could pose serious threats to users’ financial security.
Besides, failure to make payments can erode your creditworthiness and make it very difficult to avail of a loan in the future. The wrong card can also mean expensive fees and unfavorable conditions. However, to choose the card that suits your spending style and requirements, it is important to research and compare the top credit cards in India.
Conclusion
Salaried persons in India can avail of several features once they use a credit card. These can include travel offers, fuel discounts, cash back, and reward points. Financial needs and personal spending patterns can help users zero in on the best credit cards in India. One should take into account factors such as reward schemes, interest rates, and yearly fees. Overall, a credit card is a crucial financial instrument that boosts purchasing power and offers financial freedom.
