In the world of cashless transactions, Credit cards and Debit cards have made life easier. There are many benefits of using credit and debit cards – such as you do not need to carry the cash with you all the times. We will look at the best credit cards.
What is the difference between credit and debit card?
The basic difference between credit card and debit card is the way the transaction amount is charged.
When you use the debit card to pay the merchant for good or services, the transaction amount is charged to your linked bank account. There is no monthly bill and amount is directly debited from your bank account.
When you use the Credit card to pay the merchant for good or services, the transaction amount is charged to your line of credit. You get a monthly statement for all the transactions made by you during the previous statement cycle, and you need to pay the bill before the due date. If you are not able to pay the complete statement balance by the due date (which is usually 20 days after bill date ) then you need to pay the interest on remaining balance (as per credit card agreement) until you pay off your complete credit card statement balance.
So basically Credit card enables the cardholder to pay a merchant for goods and services from the line of credit with a promise to pay back the card issuer.
What is the line of credit?
A line of credit is an agreement between the cardholder and financial institution like banks and credit bureaus. The limit of credit is the maximum amount that a cardholder or customer can spend or borrow. A line of credit and its limit is approved by the financial institution based upon many factors like credit score, credit history, employment status, other loans, assets and liabilities of the cardholder.
The credit limit is the amount that a cardholder can spend from the credit card in one statement cycle. This means If your credit limit is 30k then you can spend 30k maximum from your credit card in one month cycle.
What are the advantages of Credit cards?
Many credit cards offer cashback on specific purchases so it is an extra benefit of using credit cards. Also, Many online stores offer great deals to credit card holders. However, some cards may charge some annual fee so make sure to check all the card fees before applying for any credit card. There are many credit cards which do not charge any annual fee and provide great cashback and other rewards. So if you are playing all your credit card bills on time, you can definitely save some money with many credit card offers.
The credit card is an excellent financial tool if it is used in a planned way. Always remember, spend only the amount which you are capable to pay later, and do not forget to make timely payments to your credit cards. If you are not able to pay your bill due to some conditions, you should stop using your card (except emergency) until you pay off your complete balance. As per agreement you can keep using your credit card if you are paying the timely minimum payments (minimum due amount).
How to build credit score with the credit card?
if you keep using your credit cards carefully and keep paying monthly bills on time, this will help you to build a strong credit history and will improve your credit score. You can get your credit reports and check your existing credit score or CIBIL score here. If you are applying for any loan or credit card, it is a good idea to check your credit score so that you know your eligibility. The financial institutions i.e. banks check your credit score before approving your home loan, personal loan or credit card.
What are best credit cards for rewards and cashback?
If you are looking for the best credit cards for cashback and rewards, we are listing best credit cards available in Indian market.
1. Standard chartered platinum rewards Credit card –
Standard Chartered bank’s Reward credit card offers its users with plenty of attractive features and saving options. This card is one of the best credit cards for rewards. Check Annual Fee.
1. You get attractive discounts or earn cash points on residing in premier hotels or dining in your favorite restaurants or food courts both within the country or abroad.
2. On using this card to pay for petrol or fuel in any petrol bunk of the country you could earn redeemable cash points which would translate to cash returns.
1. Get a wide range of discounts and offers on movie tickets, restaurants, golfing and many more.
2. You will get two cash points on spending Rs.500 using the card. You can use the points thus earned to make big purchases or pay back the balance amount.
2. ICICI Bank Instant Platinum Credit card –
The ICICI Bank Instant Platinum Credit Card is a good choice for those who need an instant and free credit card. The card is one of the best instant approval credit cards and does not charge any annual fee.
1. Built-in contactless technology to make quick and secure payments at retail outlets.
2. The card is available at a low interest rate of 2.49% per month.
1. Earn reward points and redeem for cash.
2. Get Rs.100 discount on up to two movie tickets per month at www.bookmyshow.com
3. Minimum 15% savings on dining at over 800 restaurants.
3. Standard Chartered Manhattan Credit Card –
The Standard Chartered Manhattan Credit Card is an excellent choice for those who are looking for cashback and rewards points on their purchases. This card charges annual fee. Check their website for more details.
1. Enjoy fast, a secure and cashless transaction with the contactless credit card.
2. Get highly secured transactions done on your credit card through 3D secure One time Password(OTP) verification.
3. The wide range of instant payment solutions like Samsung pay, Bharat bill payment solutions.
1. Earn 5%cashbacks on spending Rs.150 each time in supermarkets and department stores up to a maximum of Rs.500 per month.
2. Enjoy a gamut of offers and discounts on shopping, dining, travel and many more.
3. Get 3x reward on using credit cards.
4. Citibank Cashback Credit Card –
The Citibank cashback credit card is one the best credit cards for cashback and offers great cashback on purchases. This card charges annual fee. Check their website for more details.
1. Get credit of Rs.500 in your statement directly.
2. Convert your reward points into direct statement credits.
3. Save on shopping across 100 stores.
1. 5%cashback on movie tickets and telephone bill payments.
2. Tap and pay at merchant terminals for purchases up to Rs.5000.
3. Pay through Citibank online pay and get 5% cashback on utility bill payments.
5. HDFC Regalia Credit Card –
To get travel benefits and other privileges avail of the HDFC Regalia Credit Card it has the following features. This card charges annual fee. Check their website for more details.
1. Reward points are valid for 2 years from the date of accumulation.
2. EMI transactions won’t be considered for spend calculations.
1. Gives complimentary Airport lounge access through priority pass membership.
2. Dining privileges like getting 15% discount on dining in premium restaurants across India.
3. Get 15,000 bonus points on spending Rs.8 lacs per annum.
4. Earn 4 reward points on every Rs.150 spent.
Which credit card are you using and what is your say about the best credit card?
P.S. – We are not responsible for any financial decision made by you. If you are not sure about any financial instrument, please consult your financial advisor.