During periods of high inflation, the benefits and cashback offered by credit cards become a necessity rather than a luxury. It is prudent, therefore, to choose a card that can maximise your spending power without increasing your costs. In this credit card comparison guide, we’ve listed the top 4 credit cards that will give you the maximum benefits on everyday purchases.
How to Choose a Credit Card?
You should consider the following factors while choosing a credit card to maximise your spending:
- Value for money: Compare the benefits that each card offers
- Transparency: Transparency is crucial, ensure that there are no hidden charges
- Ease of access: Consider factors like how easy the application process is, what offline and online channels are available to access the card, and what features make it convenient to use.
Top Credit Cards Comparison
Following are the top credit cards compared based on the criteria above:
- HSBC Cashback Credit Card: Get unlimited cashback on every transaction you make. Plus, there’s no annual fee on the card in the first year and you can get it waived off for the second year if you spend over INR 1 lakh.
- IndusInd Platinum Credit Card: IndusInd gives cash back in the form of reward points as explained in the table below and it doesn’t have an annual fee either.
- ICICI Platinum Chip Credit Card: There are no welcome benefits with an ICICI card, but unlike the previous two where you get vouchers, it gives reward points for every INR 100 spent.
- Axis Bank ACE Credit Card: If you pay the bill using Google Pay, you get 5% cash back along with a scratch card. While it has an annual fee, it is low compared to its counterparts. You can also get it waived if you spend INR 10,000 within the first 45 days of getting the card.
- Chase Freedom Unlimited Credit Card: It gives 1.5% cash back on every purchase without adding any caps. Plus, for the first 15 months, it offers 0% annual rate on bank transfers and purchases. There are other cards in this series and you’ll have to do a chase credit card comparison to choose the best one for your financial goals.
Credit cards provide a convenient tool to manage your finances effectively. If you pay your bills on time, you can access a decent credit limit without losing favour with the government or your bank.
If you want to maximise the benefits of every transaction, consider signing up for Fi & Federal Bank's co-branded credit card. Fi Money has partnered with Federal Bank to launch a card that gives 5% cash back on every spend.
Frequently Asked Questions
1. How can I get a credit card for the first time?
- Check your credit score and report to determine your eligibility
- Compare different credit cards based on their rewards and cashback. Select a card that meets your financial goals and spending habits.
- Having chosen a card, apply for it offline or online
- Once you receive the card, activate it as soon as possible. Many issuers give rewards on the first transaction if it meets specific criteria.
2. How do credit cards work?
A credit card lets you borrow money from a bank to make purchases offline or online. You can also reap additional benefits that other payment options might not allow. Since it is a type of loan, you have to pay the bank back within a certain period or pay interest on the balance.