Credit cards are the most convenient modes to make any kind of payments, especially during shopping. They reduce the burden of carrying cash all the time. With banks coming up with different types of credit cards, it’s only important that you choose the right credit card for shopping, traveling or any other things you pursue.
In developed countries like the US, the credit rewards system is hugely popular. Most of the payment is done via plastic cards and the chances of getting misled by unwanted offers are high. The same goes to buyers in India, hence it’s necessary to choose a credit card with care. Here are some tips on how to select the right credit card and some of the best shopping credit cards in India with good rewards, cash backs etc.
How to choose a credit card that suits your need
1.Interest Rates
The most important factor you should consider! Interest rates vary from bank to bank and they would be charged every month. Most banks have interest rates varying from 1.50% to 3.5%. Before zeroing in on a card, compare the rates to make the most feasible choice. If you are someone who uses credit cards only for emergencies, it’s best to go for ones with low-interest rates.
At present, the lowest interest is the ‘Best Price Card’ of Kotak Mahindra at 1.50%.
2. Reward Points
This is another important factor to be kept in mind while choosing a credit card. Reward points might be worth anywhere between 50p and Re.1. for a single point. Each bank’s website will give you an idea of the value for reward points. Some banks give a higher value per reward point to premium customers. Or you can make purchases with lower reward points if you are a premium customer.
e.g. In HDFC bank, lesser points are required by premium customers and higher points required by regular customers to redeem on purchases.
3. Cashback Credit Cards
Cash back credit cards are just getting big in India. Be sure of your spending pattern while applying for cashback credit cards. For instance, if you spend more in departmental stores and supermarkets, opt for a card like the Manhattan Platinum Credit Card. This card from Standard Chartered Bank gives cash backs on Reliance Fresh, Big Bazaar, More etc. and if you spend more on utility bills, then Standard Chartered Super Value Titanium Card is right for you. Though these cards carry Annual / Renewal Fees, the benefits outweigh the cost.
4. Flexibility to Change Billing Date
It’s no secret that credit card issuers have become much more flexible with customers’ billing due dates in recent years. You just need to contact the bank’s customer care and arrive at a convenient billing date based on details like your salary date. Go for a credit card with a bank which is flexible in terms of changing Billing date.
For e.g.HDFC bank is rigid in this regard whereas Standard Chartered Bank is very flexible.
5. Ease of Payment
Before applying for a credit card, just check the payment options. Most banks provide options that allow you to pay through net banking, NEFT or cheques. Just check whether your convenient mode of payment is available with the bank. If your convenient mode is cheque, then check whether the ATM of the bank is located near your home or office.
Based on the above tips, some of the best credit cards in India right now are:
ICICI Platinum Instant Credit Card – Best for shopping
You just need a Fixed Deposit of Rs.20,000 with ICICI to avail this. The card is internationally valid and the interest rate is decent at 2.49% per month. There is no joining or annual fee.
For every Rs.100 spent, you get 3 PAYBACK points. You can get Rs.100 discounts on your movie tickets from Book My Show every month and save up to 15% on restaurant bills from over 800 restaurants like Mainland China. Besides, when you come BookmyShow offers with credit card payments, you are bound to get the best deals.
SBI Gold Credit Card – Best for Utility Bills, Shopping
This is an ideal card for bill payments and is accepted worldwide. It helps you purchase railway and airline tickets and you can get the tickets delivered at your doorstep. The best part is that you needn’t forget your bill payments.
Just set Standing Instructions to pay your bills automatically on time with this Card. The Flexi-pay option allows you make payments in simple installments on a monthly basis. You also get discounts when you shop at online stores like Koovs.
Citi Premier Miles Credit Card- Best for Travel
Choose from over 100 different airlines, hotels and car rentals. Earn miles on every Rs.100 spent on booking tickets. Redeem it during your hotel stays. This is more for the elite who flight international frequently. The Yatra SBI Credit Card is another good option for travelers.
So go for the right credit card depending on your requirement. The best bet would be to have two credit cards, with one of them being from big players like HDFC and ICICI. The other one could be a cashback card which you can use for shopping, entertainment and the like. Surely these tips will help you choose the right card based on your needs.