Credit Cards are pretty recognized nowadays, along with this India has about 77 million active credit cards, more than the entire population of the UK. An average Indian spends 14,000 with their credit card. Credit cards are getting huge attention right now, so the question is, are credit cards good? Should you own a credit card? And which are the best credit cards?
What are Credit Cards?
If you live in the stone age and don’t know what is a credit card, MEWS is here to tell you.
A Credit Card is just like a debit card, but it has a pre-defined credit limit, that is, you have a credit given from the bank, even if you don’t have enough money in your account your credit card can help you make a purchase.
Should you own a credit card?
The answer to this question is another question. “Are you sensible enough to have a credit line?”
Undoubtedly, Credit Cards are good, credit Cards allow you credit, it’s a loan on demand, so you will spend money which, you do not have in your account. This could create a debt or trap you in debt. If you do not use it sensibly and clearly.
Unquestionably, there are the perks of Credit Cards, such as Reward Points, Cashbacks, offers, passes etc.
- Reward Points: Credit Cards offer reward points against your usage, for example, Axis Myzone Card which gives 4 Edge Reward Points on every 200 spent. Such points can be used to buy gift vouchers or even flight tickets for free.
- Cashbacks: Credit Cards like Amazon ICICI gives 5% cash back with card usage limited to Amazon Platform. Axis Flipkart gives 1.5% cashback on each and every transaction. So if you spend 10,000 a month, you will get 150 rs back. Clearly not bad, right?
- Passes: Credit Cards give Priority Pass, which can be used to access the airport and railway free lounges.
- Offers: Credit Cards give offers on Preferred Merchants like Swiggy, Flipkart, Amazon and so on, which could save you tons of money.
- Builds Credit Score: Sensible usage of credit cards builds a good credit score, which allows you to get a loan from banks at cheaper interest rates.
So it’s a wise decision to get a credit card and use the credit cards you have, after-all you get 45 days of Interest-Free money with extra perks.
Which Are The Best Credit Cards?
Again, the answer to this question is very dynamic, it is totally dependent on you. Credit Cards are dynamic and depend upon users.
Credit cards are categorized on the basis of most of the spends you make, finding the most generic one is simple.
(a) Best Credit for Entertainment Expenses:
The Best Cards for entertainment are ICICI Bank Emeralde Credit Card, ICICI Bank Sapphiro Credit Cards, InterMiles ICICI Bank Sapphiro Credit Cards, Axis MyZone Credit Card, Kotak PVR Gold Card, HDFC Millennia credit card and so on.
(b) Best Credit Card for Travel Expenses:
Axis Bank Vistara Credit Card, SBI IRCTC Credit Card, MakeMyTrip ICICI Credit Card, Yatra SBI Credit Card, Vistara IndusInd Credit Card.
(c) Best Health and Wellness or Healthcare Credit Card Expenses:
Axis Bank Aura Credit Card, SBI Pulse, Apollo SBI Credit Card, HDFC Bank Doctor’s Regalia Credit Card, HDFC Doctor’s Superia Credit Card
(d) Best Credit Cards for Shopping:
Amazon Pay ICICI Credit Card, Flipkart Axis Credit Card, Cashback SBI Card, HDFC MoneyBack+ Credit Card, SBI Simply CLICK Credit Card, HDFC Millennia Credit Card, Axis Bank ACE Credit Card, HDFC Infinia Credit Card.
(e) Best LTF (Lifetime Free) Credit Cards:
Amazon Pay ICICI Credit Card, IDFC FIRST Select Credit Card, IDFC FIRST Millennia Credit Card, ICICI Platinum Chip Credit Card,
What if you don’t have a CIBIL or Credit Score?
Lastly, A credit score is very much required to get a credit card, if you don’t have a credit score, you might be denied one. In such cases, you can apply for OneCard, its a Fixed Deposit based credit card which allows you 100% limit as your FD. And if you have CIBIL, you don’t need an FD either. Policy Bazaar Step Up FD Card also offers the same card but with 80 per cent of the FD Limit.
Credit Cards can be very useful to fulfil our needs, and achieve our goals. If you want to get financially free, you can read out our article on How to get Financially Free in India in 8 Steps.
