Credit card is a small plastic card that allows you to borrow money instantly at the point of sale from your card provider to pay for purchases. The total borrowed amount has to be paid by the cardholder at the end of the billing cycle (it is generally a month long). Credit card payment is one of the most convenient and beneficial ways to pay for products. Unlike cash, credit card can be used to make online payments as well. Apart from allowing people to borrow money, these cards offer various rewards and benefits such as discounts, cashback, lounge access and memberships among many others.
It is very important to choose the right credit card or else you might end up losing on a lot of benefits. You must opt for a card after comparing it with the different cards offered in the market. There are many banks in India that offer various types of credit cards. The cards are categorized on the basis of the benefits they offer. For example – Travel credit card, Entertainment credit card, Shopping Credit Card, etc.
Mentioned below are the top 10 credit cards offered by banks in India considering the categories Fuel, Premium, Travel, Rewards, Shopping, Dining and Entertainment. These cards are chosen based on the rewards/perks they offer.
|Name of Credit Card||Joining Fee||Annual Fee from year 2|
|IndianOil Citi Platinum Card||Will be communicated at the time of issue.||Annual fee is 0 when Rs.30,000 or more is spent on the card in a membership year. If not, annual fee is Rs.1,000.|
|Standard Chartered Super Value Titanium Credit Card||Rs.499||Rs.750|
|Yatra SBI Credit Card||Rs.499 + applicable taxes||Rs.499 + applicable taxes|
|The Jet Airways American Express Platinum Credit Card||Rs.5,000 + applicable taxes||Rs.10,000 + applicable taxes|
|HSBC Visa Platinum Card||Nil||Nil|
|Citi Cashback Card||Will be communicated at the time of issue.||Rs.500|
|HDFC Bank Diners Club Black Card||Rs.10,000 + applicable taxes||Rs.5,000 + applicable taxes|
|IndusInd Bank Platinum Card||Rs.17,999||Nil|
|Axis Bank Neo Credit Card||Rs.250 which will be waived when customer spends Rs.2,500 on the card within 45 days from issue of card.||Annal from the second year is Rs.250.|
|Kotak PVR Gold Credit Card||Will be communicated at the time of issue.||Rs.499|
Credit cards are perhaps one of the most utilised financial tools in the world today. These cards are similar to loans and can be availed with a swipe of the card. Ever since their inception in the 1950s, credit cards have had a significant impact on the economy.
In order to avail a credit card, certain eligibility criteria will have to be met. For example, the applicant must be earning a minimum annual income as defined by the credit card provider and must be an adult. Additionally, credit scores also play an important role.
Salaried individuals can avail a number of credit cards as long as they are earning a minimum annual income, as prescribed by the bank or credit card provider and have a good credit score. A number of companies in India provide salaried employees with a plethora of credit cards. Each of these cards come with different benefits and features and the eligibility criteria for each of these cards will vary.
Some of the best credit cards for salaried individuals in India, are as follows -
This fuel credit card helps you save money on fuel and at the same time earn rewards on all your purchases.
Benefits of Indian Oil Citi Platinum Card
Use this card if you want to save money on telephone and fuel bills.
Benefits of Standard Chartered SuperValue Titanium Credit Card:
The State Bank of India (SBI) and Yatra have partnered to offer Yatra SBI Credit Card, which is one of the best travel credit cards in India at present. Apart from offers on domestic and international travel, this card has multiple benefits in store for the cardholders.
Benefits of Yatra SBI Credit Card:
This card provides cardholders with an unforgettable travel experience. It is offered by American Express in partnership with Jet Airways. It is very popular because of the different kinds of rewards it has to offer.
Benefits of Jet Airways American Express Platinum Credit Card
This credit card offered by HSBC bank is preferred by many people because of the endless rewards it offers. Cardholders can enjoy cashback, reward points, discounts and much more.
Benefits of SBC Visa Platinum Card
This card allows you to earn while you spend. It offers cashback and other benefits on spends.
Benefits of Citi Cashback Card
This credit card is one of the most popular premium card in India. It does not just offer reward points, but provides the best protection, golf benefits, travel benefits, lifestyle benefits, etc.
Benefits of HDFC Bank Diners Club Black Card
This premium credit card is ideal for people who wish to live a posh life. It offers multiple lifestyle and dining benefits to the cardholders.
Benefits of IndusInd Bank Platinum Card
This card is loved by movie goers and shoppers. It offers some of the best dining, shopping and entertainment benefits in India. Cardholders can also earn reward points on their spends and make purchases on EMI.
Benefits of Axis Bank Neo Credit Card
This credit card has been exclusively designed for movie buffs. It is offered by Kotak Mahindra Bank in partnership with PVR Cinemas.
Benefits of Kotak PVR Gold Credit Card
In a study conducted by Global payment solutions company, Visa, in collaboration with YouGov, it was found that Indian consumers are not hesitant to adopt new forms of digital payment solutions as long as they are safe, convenient and efficient.
The study was conducted to know the pulse of Indian consumers and their views about digital payment systems and the country’s transition towards digital economy.
Of the total people surveyed, 78% expressed their inclination towards new forms of payments. 87% stated ease of transition is the main factor that encourages them to use new type of digital payments.
Indian is slowing moving towards contactless payment technology, IoT, simplified and faster e-commerce experience, which define the next wave of future payment solutions.
While people prefer new payment solutions, it was also found that they give more importance to security of their transactions. Almost 80% of the surveyed think about security than convenience while using digital payment modes or making online payments. The opinion has been found similar across ages, gender, income, and education levels.
For the Indian consumers to move away from cash based transactions, convenience, efficiency and speed of transaction offered by digital payment modes are the main reasons, found the study.
Other key findings about the barriers to digital transactions include - merchants accepting only cash, as expressed by 41% people, concerns about security of digital payments, said 39%, and another 52% find modes of payments as key barriers.
Conducted across three countries – Sri Lanka, India and Bangladesh, the study also found that millennials are more likely to do digital payments on a daily basis for shopping at supermarkets, departmental stores, fast food centres, online, and for cab services.
People from the higher income group are found to embrace digital payment solutions compared to other groups.
The cash usage, as per the study, was marginally declined from 33% in 2016 to 31% this year and is projected to come down to 25% over the next 12 months.
Card usage and other digital payment methods continue to rise with the current year recording 36% compared to the previous year’s 34%. It is expected to touch 39% in the next 12 months.
16th November 2017
The quantum of credit card-users in circulation in India has hit an all-time record, with an increasing proportion of the population using plastic money instead of hard cash.
According to the Reserve Bank of India (RBI), around 29.8 million credit cards have been issued. This figure is true as of March 31, 2017, and is a significant increase to the the previous high of 28 million cards, the figure achieved in March 2008.
The increasing percentage of defaults during 2007-2008 caused a fall in credit card users in India. Post the 2008 economic slowdown, the number further fell to 17.65 million, the number in March 2012. However, since then, credit card usage has seen a rise, and not just in numbers. Values of transactions has shot up correspondingly. By the end of March 31, 2017, spending via credit card was found to be Rs33,619.6 crore which is a 275% jump over Rs.8,958 crore, the figure in March 2012, as per RBI data. This is an indicator that credit card holders are now more inclined to actually use them, something of a rarity in the past.
Reasons for the growth are several – including an increased comfort-level Indian banks have in issuing credit cards to customers due to easily accessible credit scores from firms like CIBIL. Credit scores indicate the borrower's’ financial discipline and possibility of defaulting. Moreover, banks these days have limited issuing cards to their own customers, which keeps them better informed and secure.
What’s helping the most is the e-commerce boom the country is experiencing. With more people shopping online today, usage of digital payments - including credit cards – is now more popular than ever. Add to that the various offers on credit cards which make them all the more lucrative – due to cash-backs and reward programs and credit cards are emerging as a preferred instrument of making payments online. With this boom in people becoming increasingly comfortable spending online, e-payments are estimated to grow by 10 times to $500 billion by 2020, according to a Google-BCG report.
12th June 2017
A credit card is an interesting tool that lets the owner handle and manage regular as well as sudden financial crisis. Currently, the credit cards offer more than the credit itself, factors such as rewards, cashback, discounts, etc. play a vital role in the rise of credit card usage. However, a credit card can become difficult if you are not using it in the right way. If you are a credit card owner, you need to make sure that you are making timely payments to avoid late payment fees and associated interest charges. It is also advisable not to exhaust all your credit as it will reflect poorly on your credit score. You can use any credit card to withdraw cash, however, it will attract cash advance fee and a higher interest rate that could affect your repayment capability. If your credit card offers rewards, you also need to ensure that you redeem the rewards before they expire. There are many more important aspects to safe usage of credit cards that you can follow to make the most out of your credit card.
6th April 2017
Since demonetization, the Indian economy has found various ways to carry out cashless transactions. The government has introduced alternatives to cash through Unified Payments Interface (UPI), Unstructured Supplementary Service Data (USSD), Aadhaar Enabled Payment System (AEPS), digital wallets and more. After demonetization, India has witnessed an increase in the number of people using their debit and credit cards for transactions. The banks provide many types of credit cards offering cashback and benefits that have enabled individuals to prefer their credit card over cash and other modes of payments. The rise in usage of credit cards has brought forwards many interesting opportunities for the banks and exciting offers for the credit card owners.
09 March 2017