Imagine planning to take a credit card but not knowing which of the cards available in the market would suit you best. Different credit cards offer distinct reward points, based on which you can use and spend wisely. Continued use of these cards has helped many cardholders avail of enough rewards that they can redeem at various points like shopping, air travel, going to cinema halls and more. Other than these things, you could use your credit cards for a lot many other reasons too.
Many people find it difficult to choose their first credit card, which is why comparing the rewards becomes important. Not every reward may suit you, which is why understanding what each card has to offer becomes necessary. Of course, annual fees matter too, thus, explaining why many first-time credit card users prefer cards that charge nothing in their first year of use.
READ MORE: 5 major reasons why your credit card application can get rejected
Take, for example, the HSBC Smart Value Card that you can use for free in the first year. Inclined customers benefit from joining perks that include:
- 10% cashback on spending for the first 60 days.
- Amazon voucher worth ₹250 on a single transaction of ₹500 or more within 30 days of card issuance.
- Three complimentary airport lounge access at domestic and international lounges or three meal vouchers.
What HSBC customers love about this card is that even the annual fees have been waived off, which means that they can use it lifetime for free. The interest rate of 10.99 per cent every year on EMI products for the first 90 days while there are ₹3000 savings every year on fuel recharge. Those who love to eat outside avail discounts of up to 15 per cent on dining at more than 1000 restaurants across the country.
Then there is the HDFC Bank Moneyback Card that charges ₹500 annual fee that is reduced to zero if the customer opens a current or savings account within three months of the card approval. The reward points pile up easily for the customers as they get four points for every ₹150 spent on online shopping and two points for ₹150 spent on other kinds of expenditures. Moreover, the customer gets 500 bonus points on joining, which leaves enough points for the cardholders to redeem and enjoy the benefits accordingly.
READ MORE: This fuel credit card offers the best cashbacks and reward points; Check details
What customers love about this card is that they can seek redemption of reward points as cashback against their outstanding amount. For every 100 points, they are redeemed ₹20 though the minimum redeemable amount is ₹500. Apart, there is a full fuel surcharge waiver of up to ₹250 per billing cycle and zero liability on the lost card, if reported immediately.
How many of you have heard of the Citi Rewards Card that charges ₹1000 yearly which is reduced to zero if annual spending exceeds ₹30,000? Customers can avail of benefits corresponding to more than 4800 points in the first year though the same is subject to change as per one’s spending pattern.
This comes with the added benefit of earning 300 bonus points on bulk spending of ₹30,000 or more in a month. Moreover, there is no expiry date on reward points, which means that customers may redeem the points throughout their lifetime. On spending at various apparel or department stores, customers can earn 10 points for every ₹125 spent. Spending at other stores or any kind of expense can help customers earn one point for every ₹125 spent.
Who does not like to earn bonus points? However, customers can earn 1500 bonus points on first spending within 30 days of card issuance. Customers can also earn 1000 bonus points on the first spending of ₹1000 within 60 days of receiving the card. The customers can then redeem the points at their convenience.
Credit cards are a necessary evil considering how the prices of essential items are rising. This has prompted many people to carry their cards to make payments.
