Best Credit Card Offers in India 2014

In the present day world, credit cards, also referred to as plastic money, have become an indispensable part of everyday life, especially among the upper middle and high class of the society. Of late, people have stopped stashing their wallets with actual money, and prefer carrying a couple of credit cards instead, which, apart from making day-to-day transactions easy, also serve the purpose of a status symbol for the owners.

Despite the fact that credit card is, at present, one of the most sought after monetary instruments in India, a major chunk of the population apply for it without conducting much research and overlook the features and benefits offered by the service providers. There are several things that one must look into before selecting and applying for a credit card, including hidden charges, customer service, rewards and benefits, transaction charges and others. Based on such an analysis, here is a tally list of some of the best credit cards offered by several banks and financial institutions for salaried professionals in India.

1. Citibank Platinum Credit Card

Citibank platinum credit card is the talk of the day among several middle, upper middle and even upper class members of the society. With zero joining and annual fees, no person wouldn’t want to have such a credit card in their wallet. Subject to an interest rate of 3.25% per month on transactions not serviced with 55 days, this credit card offers 5x reward points at various restaurants, shopping outlets, travel, entertainment and other merchant partners, in addition to 1 point for every Rs. 125 spent anywhere.

2. HDFC Platinum Plus Credit Card

When talking about the best credit card in India, HDFC is the first name that pops up in mind. With an annual fee of Rs.299 (subject to full waiver if the annual retail spending crosses the Rs. 30000 mark) and an interest rate of 3.15% per month, this HDFC credit card offer scores of benefits to the users. Some of the prime highlights of the platinum plus credit card include 0% fuel surcharge, zero liability on lost card, free add-on cards, exclusive discounts and offers on shopping and dining, free credit period of up to 50 days and cash withdrawal limit of 40% of the credit limit.

3. SBI Gold and More Credit Card

Gold and More SBI Credit Card is yet another option worth considering for interested customers. As of now, this credit card is available at a joining fee of Rs.499 and is subject to an annual fee of Rs.499, which can be waived off if a user spends more than Rs. 75000 or more in the preceding year. As far as rewards and benefits are concerned, the bank is now offering 2.5% cash back at all grocery and departmental stores, 2.5% fuel surcharge waiver, 2000 bonus cash points on first purchase, Rs.100 cash back on first ATM withdrawal and lots of other benefits on merchant specific spending.

So, these are some of the best credit card options that are made available by various public and private sector banks this year. With the increasing demand of credit cards and amazing response towards the accompanying reward schemes, it is pretty evident that banks will come up with more attractive offers in the times to come. 

Read more ...

Will a Balance Transfer on a Credit Card Help You Save Money ?

Since the credit card boom in India, shopping has been relatively easy for the middle class population. What people forget is the ‘buy now pay later’ option that a credit card provides, makes them pay it for a long time. They ignore the fact that credit card loans are probably the most expensive loan they can possibly incur (thanks to the spending power they get). It gets extremely difficult to make timely payments and coping up with the heavy interest.

The Vicious Circle of Credit Card Payments

Most people just pay the minimum due balance on the credit card along with the interest. What they don’t realize is paying the minimum due doesn’t help their credit situation at all. Rather, the outstanding amount stays as it is and if they still keep using your card for random purchases, the amount just keeps on getting intensified. One fine day they realize that they owe a huge sum to the credit card company and don’t have the means to pay it off.

Yes, the truth is credit card payments are a vicious circle, which entangles your finances in a bad way. Now if you see yourself in this position where the debt is going higher and the minimum payments are not helping in reducing the amount, what would be your first line of defense? Believe it or not, there are a lot many who take a personal loan or borrow money to pay off the credit card. What they are doing here is in fact incurring more debt.

The Role of Balance Transfer to pay Credit Card Bills

So how does one come out of this financial fiasco of credit card debt? Well the fact is there are some easy ways that can help in avoiding the high rate of interest and concentrating on knocking off the principle balance. But for that you need another credit card, with a balance transfer facility. Well of course it may sound a little lame when we say this, because superficially it looks like you are paying one credit card and still incurring debt on another. But the fact is balance transfer credit cards come with hordes of options that help you save money.

Here is how you can save some money for yourself in the bargain and manage your credit card fiasco.

• As long as the outstanding amount on your credit card is under 80% of the new card limit, you can do a balance transfer from one card to another.
• There may be a small processing fee in some case (usually 2% or less), while some other offer free balance transfers.
• Once you transfer your balance, your outstanding credit card gets paid off. Of course you have to pay the new card but most of these cards come with a 0% interest for three months. So whatever you pay on these cards will go purely towards the principle amount
• Some companies don’t offer a 0% for 3 months but a 1.5% for six months, which is a fair deal as opposed to paying the high APR on your other credit card.
• So now instead of struggling with interest + minimum due, you are purely paying the principle amount, which will be much easy to manage as opposed to the previous situation.

This option will work best for those who can pay lump-sums towards the new balance transfer card because only the first 3 months are at 0% interest (in some cases 1.5% for 6 months). The bottom line, you should be able to pay the entire outstanding amount on the new credit card within the stipulated period or you may get entangled again in the interest and credit debt web.

Read more ...

ICICI Credit Card - Get Informed Before Using One

ICICI bank is regarded as one of the biggest banks in India as they offer a wide range of investment and money making instruments to the consumers. They are also one of the largest credit card issuers in India as they have cards to meet the requirements of all kinds of users. An ICICI credit card can help you enjoy some exciting offers at really competitive rates. They offer value for money cards, classic cards, gold cards, premium cards, EMI cards, affinity cards and co-branded cards to their customers. Due to the presence of so many credit card schemes, you must get informed before choosing a suitable credit card for yourself. Every customer needs to do a little bit of research regarding the credit card schemes being offered by the bank.

With more than 6,000 ATM branches in India, ICICI bank enjoys a huge network that serves millions of customers in the country. With an ICICI credit card, you get the convenient facility of anytime ready cash. You can even make utility payments and get travel discounts when you swipe these credit cards. ICICI bank even facilitates 24*7 online procedures for the application of credit cards in India. You can make several online transactions, using your card, and even keep your funds secure with a single click. For using this credit card effectively, you’ll have to do a lot of important things that help you stay under the limit.

Go through the major details regarding the different ICICI credit cards available in the market.

Card Variant	Joining Fee (1st year)	Annual Fee (1st year)	Supplementary Card Fee (Annual)
ICICI Bank Sapphiro Credit Card	Rs 6,000	NIL	NIL
ICICI Bank Sapphiro Visa Credit Card	Rs 6,000	NIL	NIL
ICICI Bank Signature Credit Card	Rs 25,000	NIL	NIL

As on 20^th March, 2014

Knowing Your Monthly Spending Limit

Even though the ICIC bank credit cards come with a clear policy regarding your monthly spending limit, it is possible that you overlook the fact due to various reasons. It often happens that people don’t really pay attention towards their spending limit and they are the ones who end up going overboard. This might really prove to be costly for you as the bank charges a certain amount of penalty from the card holders who breach their spending limit.

Try and Get Rid of the Outstanding Balance Each Month

Every month of credit card usage should begin as a fresh chapter for you. For the best results, you should get rid of all the outstanding balance on your credit card as soon as possible. You shouldn’t let the amount get any bigger as you might face a lot of difficulty, while paying the interest on the total accumulated amount.

Know the Additional Fee being Charged by the Bank

ICICI bank charges a nominal amount of the annual fee against the usage of credit cards. Therefore, it is important for a card holder to know about any such charges so that he can be well prepared to reimburse them on time.

Use Your Rewards Wisely

When you use your ICICI credit card, you get plenty of rewards from different shopping outlets and brands in the country. These reward points add up to your account each time you shop using your card. If you’ve got a good number of accumulated points, then you must use them wisely to shop for an air ticket or a movie ticket. There are even some special privileges associated with your card and you must make use of them to your maximum advantage.

Choosing the Right Card

There are various types of credit cards being offered by the ICICI bank. If you’re a frequent shopper, then you could consider going for a shopping credit card and if you are more into flying regularly then you could opt for a travel credit card. It is crucial to choose a card according to your requirements rather than your wants.

The significance of getting informed before purchasing a credit card is immense. As a user, you should do everything that you can to make your experience worthwhile. 

Read more ...

Apply for Credit Card and Make Payments Conveniently

Vikram was a little hesitant while applying for his first credit card because he knew that even a small mistake could cost him a lot of money. For this reason, he decided to wait and research regarding the best credit cards available in the market. This is actually what a user needs to do as acquiring a credit card can prove to be one of the most intimidating tasks ever. When you apply for credit card, the bank does a complete background check on you and ensures that you have a good credit history. If they find your creditworthiness and credit score to be good, you can get your credit card in no time. In case you fail to fulfill the eligibility requirements, you might have to start afresh which will cost you a lot of time and money.

In actuality, there are various things to know about credit card application and a user needs to ensure that he/she keeps a track of all the essential pointers so that a good credit card can be acquired.

Information and Documents Required

Anyone who wants to apply for credit card needs to provide certain information and documents to the bank so that their application can be processed smoothly. 

• Full name and birth date

• Email address, home address and address proof

• Information on present and previous employers

• Key information on other cards you hold (If any)

• Income proof

• Salary slips

• Bank account statements

• ID proof

The photocopies of all such documents are to be submitted along with the application form. 

These documents must be duly attested by the borrower and any failure in this may result in the application getting rejected.

Comparing the Interest Rates and Special Features

The process of applying for credit cards usually starts when you choose a bank for granting you credit card services. This is also the most significant step that you’ll take because you have to share all your personal details with the bank that offers you a credit card. There are innumerable factors which are to be taken into consideration such as the reward points offered by the bank, the cash back discounts and the processing charges levied by the bank. As a smart user, you must apply for credit card only when you’ve thoroughly gone through the different credit card schemes available in the market. 

Have a closer look at the top features being offered by the banking institutions providing credit cards.

Banking Institution	Special Features
HSBC Credit Card	Domestic flight ticket vouchers, movie ticket vouchers, enhanced rewards program
American Express Credit Card	5X membership points, exclusive dining offers, exceptional reward point programs
ING Vysya Credit Card	No annual fee, 0% fuel surcharge, double reward points for international expenditures
SBI Credit Card	Discount deals on hotels, best airfare deals, car rental deals
ICICI Credit Card	Discount on airfare, exclusive reward points programs

As on 18th March, 2014

Go for a credit card that offers a moderate limit :

Some credit card companies offer the kind of credit history required to get approved for the listed credit cards. If you’re planning to get your first credit card, it is crucial for you to choose a card which offers a moderate purchase limit. Usually, people tend to spend unabashedly when they get credit cards for the first time. Avoiding such a situation will help you in not just choosing the right card but also using it in the right manner.

Don’t take denials too seriously

Anyone who applies for a credit card must stay aware for the impending rejection. So, you should never take such denials seriously, but instead you must focus hard on improving your credit score so that you don’t get rejected the next time. Find a secured credit card which comes along with innumerable reward points and exclusive programs such as free airline and movie tickets.

The process of applying for a credit card can be made much more convenient if you already know the different schemes being offered in the market.

Read more ...