Opting to use a credit card has many benefits. Previously, they were unheard of in the Indian marketplace. Nonetheless, when demonetization occurred, many people were adversely affected, but there were silver linings.
The use of debit cards and credit cards saw a surge, and more credit cards were applied for in the years following 2016. Credit cards are now being used by over 50 million Indians, a number expected to increase by 10% in subsequent years. That may not sound like much, given our population and the fact that the majority are from low-income groups.
Nonetheless, that scenario is changing, with more youth in the country gaining an education, and having careers, becoming upwardly mobile is no longer a far-fetched dream for lower-income groups. Additionally, organizations are realizing the advantages of credit card use for employees. With a credit card out there to suit everyone’s needs, from a fuel credit card that can be used by transportation companies to a travel credit card for professionals, credit card use is touted to increase as the Indian economy grows.
Upside of Credit
Used in a responsible way, credit cards have doubtless advantages. They are plastic devices that offer security and are convenient. They offer a line of credit anywhere from 45 days to 55 days from the first transaction/purchase, and you can pay online with them or at POS terminals. Providing contactless payments with Wi-Fi cards is especially appreciated in the current pandemic.
Indians can afford virtually anything as credit cards afford a “purchase at once” option, letting consumers pay afterward. Credit cards can split payments into affordable EMIs and let you buy big-ticket products. Several types of credit cards exist, and each yields rewards when used. These can be redeemed for cash later.
Depending on individual use, credit cards are of different types to encourage you to use them more. For instance, the best credit card for online shopping could be the HSBC Cashback Credit Card, letting you shop on e-commerce portals like Amazon, Swiggy, MakeMyTrip, and BigBasket, or the HDFC Millennia Credit Card with shopping on Amazon, Flipkart, and Smartbuy. These particular types will provide you with offers and discounts.
It’s unnecessary to opt for a specific type of credit card, and you can use a general credit card to meet your expenses, especially if you need to meet emergency costs. However, individuals like to get credit cards that they know they are going to use frequently according to their purchase preferences as these yield additional benefits for favored purchases. For instance, a fuel credit card is advantageous for an individual who may be traveling a lot by car, either within city limits or out of the city regularly. With the cost of fuel rising as we speak, the following fuel cards are worth exploring, and they may save you some money:
- SBI BPCL Octane – You get a 1% fuel surcharge waiver and 25X reward points with every purchase at BPCL pumps. You also earn 6.25% cashback on Bharatgas online payments. If you spend up to 2 lakh INR, the annual fee of 1,499 INR is waived off in the next year.
- Citibank IndianOil Platinum – The annual fee of 1,000 INR is waived on spending 30,000 INR on fuel in a year. You get 4 reward points for every 150 INR spent and 2 reward points for purchases of every 150 INR at grocery stores.
- Standard Chartered Super Value Titanium – This is not a co-brand card, so no matter where you spend on fuel, you avail yourself offers and rewards. You get 5% cashback on fuel purchases up to a maximum of 200 INR per month. You also get 5% cashback on utility bills.
Avail one of the best credit cards with the Bajaj Finserv RBL Bank SuperCard, and use it as an ATM card with free withdrawals for up to 50 days, or a loan card with loans at minimal interest rates of 1.16% per month for 90 days. You can pay for things on EMIs and make your spending affordable.