7 Best Credit Cards for Beginners in India

Image of 9 Best Credit Cards for Beginners in India
Table Of Contents

    Introduction

    When starting your career, it can be tough to know where to turn for advice. But with the right credit card, you can build a solid financial foundation immediately. In this article, we’ll recommend 7 of the best credit cards for beginners in India.

    How to Apply for a Credit Card

    You must gather your required documents to apply for a credit card in India. These include your passport, driver’s license, and bank statement.

    Many credit card companies offer online applications, so it is easy to get started.

    Once you have completed the application process, you will receive an acknowledgement email from the credit card company. This email will contain your application number and other important information.

    If you have questions about applying for a credit card or encounter issues during the application process, please contact the credit card company directly. They will be able to help you with any questions or problems that you may have.

    How to use Credit Credit?

    If you’re a beginner to credit cards, there are a few things you need to know before you start using them.

    • First, look out for a credit card with a minimal joining fee. Some banks offer introductory offers on cards that are good for new customers. You can also utilize credit cards to build your credit history.
    • Second, always use caution when spending money. Always understand the terms and conditions of the card before you start using it. Additionally, ensure to pay your bills on time, so you don’t get punished with high-interest rates.
    • Finally, never use your card for unauthorized purchases. If you don’t know the person you’re buying from, ask for identification before making a purchase. And if some unfortunate event happens with your card, contact your bank immediately so they can help you resolve the issue.

    Either you’re just starting out or want a reasonable rate on your purchases, or you’re looking to build up your credit history to get better loans in the future.

    Read on for our recommendations!

    Citibank Cashback Credit Card

    Image of Citibank Cashback Credit Card
    DescriptionFees & Charges
    Joining FeeCommunicated at the time of sourcing
    Annual FeeRs 500 + GST
    Add on Card ChargesCommunicated at the time of sourcing
    ATM Cash Withdrawal Charges2.5% of the Amount
    Foreign
    Currency
    Transaction
    Charges
    For international transactions in USD,
    3.5% mark-up on the INR equivalent of the USD
    For international transactions effected in currencies
    other than the USD, the transaction would first be converted into USD

    The Citi Cash Back Card is an entry-level cashback credit card with an annual fee of Rs 500. You earn cashback on all categories of spending made with the card.

    Also, it allows accelerated cashback on movie tickets and utility bill payments. You get special discounts on travel and dining spends (with specific partner merchants). Some of the features of the card are:

    • 5% cashback on telephone bill payments and movie ticket purchases.
    • 5% cashback on utility bill payments on Citibank Online Bill Pay.
    • 0.5% cash back on all other categories of spending with the card.
    • 20% discount on dining bills at participating restaurants.
    • Up to 30% savings on Swiggy and up to 50% on Zomato.


    If you are interested in this card and want to know more about it –
     

    ProductDo you find it interesting?
    Citibank Cashback Credit Card4.6

    Citibank Cashback Credit CardEntry Level card from Citibank

    • Annual Fee – Rs 500
    • Get 5% Cashback on telephone bills, utility bill payments and movie ticket purchases
    Let’s Explore !!

    American Express Membership Rewards Credit Card

    Image of American Express Membership Rewards Credit Card
    DescriptionFees & Charges
    1st Year FeeRs 1,000 plus applicable taxes
    2nd Year OnwardsRs 4,500 plus applicable taxes
    Add-on FeeNIL
    Renewal Fee WaiverRenewal fee of Rs 4500 will be 100% waived off if total spends on American Express Credit Card in the immediately preceding membership year is Rs 1,50,000 and above
    Renewal fee of Rs 4500 will be 50% waived off if total spends on American Express Credit Card in the immediately preceding membership year is between Rs 90,000 and Rs 1,49,999

    FYI – This is an excellent credit card. But, as its fee is on the higher side, you should apply for this card only when it is available under the ” Free Joining Fee” campaign across various finance blogs.

    American Express are well known for its excellent service and rewards. The American Express Membership Rewards Card is one of the best entry-level cards from American Express for Indian consumers.

    Despite being an entry-level credit card, you can earn as much on it as many other premium cards.

    • Welcome Gift of 4,000 Bonus Membership Rewards® Points.
    • Earn 1,000 Bonus Membership Rewards®Points for simply using your Card 4 times on transactions of Rs. 1,500 and above every month.
    • Redeem your Points from the fabulous 18 and 24 Karat Gold Collection.
    • Enjoy exciting discounts on dining, travel, car rental, and shopping.


    If you are interested in this card and want to know more about it –
     

    ProductDo you find it interesting?
    American Express Membership Rewards Credit Card4.8

    American Express Membership Rewards Credit CardBest Entry Level card in the Indian Market

    • Annual Fee – Rs 1000 + GST
    • Welcome Gift of 4,000 Bonus Membership Rewards® Points.
    Let’s Explore !!

    Amazon Pay ICICI Bank Credit Card Review

    Image of Amazon Pay ICICI Bank Credit Card
    DescriptionFees & Charges
    Joining FeeNIL
    Annual FeeNIL
    Rewards Redemption FeeNIL
    Foreign Currency Markup Charges3.5% of the transaction amount
    Add-On Card FeeNIL

    Amazon needs no introduction. Whenever you think of online shopping, it is one of the top websites. The Amazon Pay ICICI Bank Credit Card is excellent if you spend more at Amazon than anywhere else.

    • No Annual Fee.
    • The card offers 5% cashback on all Amazon purchases and 2% cashback on other online transactions for Amazon Prime customers.
    • For Non-Prime customers, the cashback is 3% on all Amazon purchases.
    • No Cost EMI for 3/6 months on Amazon.


    If you are interested in this card and want to know more about it –
     

    ProductDo you find it interesting?
    Amazon Pay ICICI Bank Credit Card4.5

    Amazon Pay ICICI Bank Credit CardBest Entry Level card for Amazon Shopping

    • Annual Fee – NIL
    • 5% cashback on all Amazon purchases and 2% cashback on other online transactions for Amazon Prime customers.
    Let’s Explore !!

    Flipkart Axis Bank Credit Card Review

    Image of Flipkart Axis Bank Credit Card
    DescriptionFees & Charges
    Joining FeeRs 500 + GST
    Annual FeeRs 500 + GST
    Annual Fee WaiverSpend Rs 2 Lakhs in a membership year
    Foreign Currency Markup Charges3.5%
    Interest Charges3.4% per month
    Add-on Card FeeNIL

    Just after Amazon partnered with ICICI Bank to launch the Amazon Pay credit card, Flipkart and Axis Bank came up with their co-branded card in July.

    With this one card, you can shop on both Flipkart and Myntra, as it offers 5% cash back and cashback at selected merchants. It’s not just for shopping, either.

    Initially, the card was launched as a Mastercard variant. After being banned by RBI, Axis Bank issued the card as a Visa variant. Until January 5th 2021, it was offered for free to new users. However, starting this date, it will include Rs. 500 as the Joining fee.

    This card also provides privileges like travel passes that give you access to specific domestic lounges and more while dining out and spending money on fuel.


    If you are interested in this card and want to know more about it –
     

    ProductDo you find it interesting?
    Flipkart Axis Bank Credit Card4.5

    Flipkart Axis Bank Credit CardBest Entry Level card for Flipkart Shopping

    • Annual Fee – Rs 500 + GST
    • 5% cashback on Flipkart, Myntra and other partner websites and 1.5% flat cashback on all other spends.
    Let’s Explore !!

    SimplyCLICK SBI Credit Card Review

    Image of SimplyCLICK SBI Credit Card
    DescriptionFees & Charges
    Joining FeeRs 499 + GST
    Renewal FeeRs 499 + GST
    Renewal Fee WaiverSpending more than Rs 1 Lakhs in the previous year
    Rewards Redemption FeeRs 99 + GST
    Add-on Card FeeNIL
    Foreign Currency Markup Charges3.5% of the total transaction amount

    SBI Cards has been India’s second-largest credit card issuer for a while now. SBI typically runs a 10% instant discount offer during Amazon/Flipkart sales.

    When shopping online, an SBI credit card is necessary for every shopper. The best card for online shopping is SimplyCLICK from SBI.

    • 4.5% rewards on online transactions with 10X partners.
    • 3.25% rewards on all online transactions.
    • Easy annual fee waiver criteria.


    If you are interested in this card and want to know more about it –
     

    ProductDo you find it interesting?
    SimplyCLICK SBI Credit Card4.6

    SimplyCLICK SBI Credit CardBest online shopping card from SBI

    • Annual Fee – Rs 499 + GST
    • 4.5% rewards on online transactions with 10X partners.
    Let’s Explore !!

    HSBC Cashback Credit Card Review

    Image of HSBC Cashback Credit Card
    DescriptionFees & Charges
    Joining FeeNIL
    Renewal FeeRs 750 + GST
    Renewal Fee WaiverSpending more than Rs 1,00,000 in the previous year
    Finance Charges3.3% per month
    Add-On card FeeNIL

    HSBC offers millennials the best credit card because it offers unlimited cashback on popular spending categories. It provides introductory deals that make HSBC the best addition to your wallet.

    A good credit card should offer the maximum value for your favourite purchases. HSBC Cashback Credit Card offers the maximum value for travel spending, for example, of all available credit cards.

    • Unlimited cashback on all your transactions.
    • Get 1.5% cashback on all online spends (excluding the transfer of funds to an online wallet) and 1% on all other spends.
    • Zero joining fee.
    • Annual membership fees of Rs 750 will be reversed if your total annual spend exceeds Rs 100,000.


    If you are interested in this card and want to know more about it –
     

    ProductDo you find it interesting?
    HSBC Cashback Credit Card4.8

    HSBC Cashback Credit CardBest beginner’s card for Indian customers

    • Joining Fee – NIL
    • Unlimited cashback on all your transactions.
    Let’s Explore !!

    HDFC MoneyBack Credit Card Review

    Image of HDFC MoneyBack Credit Card
    DescriptionFees & Charges
    Joining FeeRs 500 + GST
    Renewal FeeRs 500 + GST
    Renewal FeeSpending of minimum Rs 50,000 in the previous year
    Rewards Redemption FeeRs 99 + GST
    Foreign Currency Markup Charges3.5 % of the transaction amount
    Interest Rates3.6% per month
    Add-On Card FeeNIL

    HDFC Bank has been the largest private sector bank for quite some time. It also caters to consumers that have a low credit score.

    The HDFC MoneyBack Credit Card does not base its credit limit on one’s credit score but rather their potential income.

    HDFC MoneyBack Credit Card is tapping into the ever-growing millennial population of India and their credit score. It includes a low annual fee and a Rewards to Cashback feature for Gen Z and the millennials.

    • Earn 2 Reward Points on every Rs 150 spent (Excluding fuel transactions, wallets loads/prepaid card loads & voucher purchases)
    • Earn 2X Reward Points – 4 Reward Points on every Rs. 150 spent online*
    • Earn up to Rs 500 worth of gift vouchers in a quarter on the spending of Rs 50,000. 
    • Earn up to Rs 2,000 worth of gift vouchers in a year.


    If you are interested in this card and want to know more about it –
     

    ProductDo you find it interesting?
    HDFC MoneyBack Credit Card4.3

    HDFC MoneyBack Credit CardBest beginner’s card from HDFC Bank

    • Joining Fee – Rs 500 + GST
    • Earn 2 Reward Points on every Rs 150 spent (Excluding fuel transactions, wallets loads/prepaid card loads & voucher purchases).
    Let’s Explore !!

    Conclusion

    Finding the right credit card for beginners can be a daunting task. With so many cards on the market, it can be hard to know which one is best for you. This article has reviewed the 7 best credit cards for beginners in India.

    Our list has something for everyone, from no/minimal annual fees to low-interest rates. Hopefully, by reading through our review, you will be able to find the perfect card for your needs and start building your credit history today!

    Please read other interesting blogs:

    FAQs

    Is it necessary to have a bank account in India to receive a credit card?

    No, having a bank account in India is unnecessary to receive a credit card. However, having one is always a good idea because it can help you track your spending and build your credit score. If you don’t have a bank account, you can usually get one through an overseas bank.

    What is the best way to improve my credit score in India?

    A credit monitoring service is the best way to improve your credit score in India. This will help you stay on top of your credit history and ensure that all your transactions are appropriately recorded. It’s also essential to keep your borrowing limits low. Hence, you’re not overextended if something goes wrong with your credit score.

    How long does it take for my new credit card to activate?

    It typically takes about two weeks for your new credit card to activate. However, this time can vary depending on the card issuer and the specific card you’ve selected. Make sure to read the terms and conditions of the card carefully before applying, so you know what to expect.

    What is the minimum amount I need to spend to earn rewards with a credit card?

    The minimum amount you need to spend to earn rewards with a credit card can vary depending on the card issuer and the specific card you’ve selected. However, most cards require you to spend at least $1 per month to qualify for rewards.

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