Introduction
This article suggests the best options out there for lifetime free Credit cards and why one should own multiple credit cards from different banks.
When you begin shopping for your daily needs you realise the ease of cashless transactions and end up using either a Debit or a Credit card. Wallet transactions were a preferred choice right after demonetisation, however soon the cash back offers slowly stopped and are no more a preferred choice of payment due to frequent reloading and additional time taken to complete the transaction.
Why Credit Card?
There are a bunch of reasons as to why one should go in for a Credit card -
1. Buy now pay later
2. Cash back offers (you generally save 5 ~ 20% on online transactions using the right Credit Card)
3. Improve your Credit Score/CIBL Score
4. Reward Points - Not Really (will explain later)
5. Complimentary Airport Lounge Access and Food (both Domestic and International)
6. Zero liability on fraudulent or loss of the card
Who should not own a Credit Card?
Generally it's good to have atleast 1 credit card, however there are few instances one should not own one -
1. Your credit card usage should be limited to your ability to pay up the following month, else you get into a debt trap, making it practically impossible to come out of - Will explain how to overcome if you are already in a debt trap.
2. You have too many credit lines open and usage on all lines are over 50% <~ this will adversely affect your Credit rating, this makes it very hard for Home loans and other Loan approvals.
3. You seem to frequently default on Credit Card Payments - This affects your Credit Score + you pay a hefty price for defaulting.
4. You own spend based Credit Cards and you never meet the targets and end up paying Annual fees more than what you asked for
What are the best options out there and which Payment Gateway should I go in for?
There are 4 main gateways who offer services in India, they are -
1. Visa - They are the largest and best, offer the maximum benefits, they again have subclass - Platinum,Signature & Infinte (premium)
2. Mastercard - They are Good, however I do not see much offers to customers
3. Amex - Most merchants decline or prefer non Amex as their service charges are higher, I see some good spend based offers
4. Rupay - Upcoming - for now, I don't see any benefits owning one.
5. Diners/Discover - Used to be good once upon a time, it's a dying gateway better to stay away.
What are the Best Lifetime Free Credit Cards out there and why?
By lifetime free, I mean no strings attached - no spend targets etc.
Most Credit Cards offered to customers are not lifetime free, if an agent calls you and tries to sell you a credit card which is lifetime free, make sure you double check either on the website or customer care after receiving the card (Before Activation). If the Card is not activated you are not liable to pay anything.
The Top 10 Cards in Order -
1. HDFC Regalia or Regalia First [Visa Platinum/Signature/Infinte Credit Card]
Pros -
1. Lifetime free if you are salaried or have savings bank account with HDFC.
2. Best card for online shopping give you Periodic CASH Back and instant discounts - Amazon, Bigbasket, Grofers, Flipkart ...
3. Free Domestic Airport Lounge access - INR 2 is charged, Free even for Add On Cards (NO other Credit card offers this feature for Free)
4. Free Priority Pass - For Primary Card holder and Dependents - This gives you International Airport Lounge access
5. Lowest Cross Currency Transaction Fee among all Credit Cards - 2.36% - This is the excess you pay for $ payments or non INR Transactions you do overseas, including current GST.
6. Customer care lines are always available and they respond to your queries, if you open a salary account with HDFC, you even get a Personal Banker to address your concerns.
7. They give you maximum re-payment window period around 45 days
Cons -
1. The card is issued based on Income Bracket and Credit Rating
2. The Reward points you accumulate is a waste as the rewards catalog sucks - Extremely Bad !!
3. The bank charges you a fee for Redeeming your points !!
4. The Bank seldom offers spend based cashback offers -
Ex: You spend INR 10k for the month and you get cashback of 2k <~ i don't see such offers being made by HDFC
2. Amazon Pay - ICICI Credit Card [Visa Credit Card]
Pros -
1. Lifetime free - unconditionally issued
2. On approval you get INR 500 Amazon Credit.
3. There are no points accumulated, it translates to cashback varying between 1 ~ 5 % and credited to your Amazon Pay balance - Which is actually good, no need to accumulate reach a threshold to redeem.
4. All on-going promotions applicable to ICICI Card take effect here - so it's a great regular use card.
5. Customer care lines are always available and respond promptly to your queries (ICICI)
Cons -
1. The initial application verification is very tedious and the agents do not show up on datetime agreed upon, they test your patience.
2. The card does not reveal it's sub-class - Platinum/Signature/Infinite. This is important as few offers are applicable only on select class
3. American Express Rewards [Amex Gateway]
Pros -
1. They rarely run lifetime free credit card promotions, you need to watch out on their website and apply for it.
2. They offer 5 ~ 15 % discounts on popular websites on periodic basis.
3. If you are a travel person you might see a lot of offers relating to travel expenditure.
4. Their reward catalog sucks, but you can opt to pay out your credit card outstanding amount using the points you have accumulated - Which is very good.
5. The reward Points NEVER Expire & there are NO REDEMPTION Charges
6. They have one of the best customer care and least wait time to get hold of an agent to address your concerns.
7. They always have a promotion where-in you make 4 transactions per month amounting to INR 1000 or more each in a calendar month you get 250 additional reward points.
Cons -
1. Odds of approval are low, they take very long to process your application and deny your application for trivial reasons - I was denied twice for not writing date below my signature, I was also denied once for un-known reason and I had to keep following up for about a month to push them to complete the process
2. For online transactions the OTP page does not load properly, frequently times out - This happens over fast network as well.
3. This card does not give you Airport Lounge access, which I feel is strange as their advertising and promotions are directed towards travel & hotel stay!
4. Yes Prosperity/Edge/Premia - [Master Card]
Pros -
1. I should say they are the best when it comes to cash back offers.
2. The trick is not to use a card for 3 to 6 months, you receive an email promotion to spend 10, or 20k during a window period and they give you 10 ~ 15 % cash back on any spends.
3. When it comes to online shopping offers I see few, but not as much as HDFC,Axis bank or ICICI Bank.
4. The reward catalog is not great, but you can redeem them for Gift cards from Big bazzar and other useful products
5. They give good cashback offers on Insurance premium Spends - especially during Financial year end.
Cons -
1. The bank charges you a fee for Redeeming your points !!
2. The bank frequently calls / messages to cross sell products and increase credit limit, use truecaller and ignore such calls.
5. Standard Chartered - Visa Platinum Rewards
Pros -
1. Like Yes Bank, I should say they are the best when it comes to cash back offers.
2. The trick is not to use a card for 3 to 6 months, you receive an email promotion to spend 10, or 20k during a window period and they give you 10 ~ 15 % cash back on any spends.
3. Their reward catalog is not great, but you can redeem them for somewhat useful Gift cards
4. The application process is online and they are very prompt and do it professionally and you don't get bugged or annoyed.
Cons -
1. The worst part of Standard Chartered bank is customer Care - You will be Charged for availing the service if it is listed on their mobile app, in other words, you must install their mobile app and try to resolve via the app, if it does not help only then call customer care, which is pain staking.
2. The bank charges you a fee for Redeeming your points !!
3. When it comes to online shopping offers I rarely see cashbacks or discounts.
6. IndusInd Bank - Visa Platinum
Pros -
1. Like Yes Bank, I should say they are the best when it comes to cash back offers.
2. The trick is not to use a card for 3 to 6 months, you receive an email promotion to spend 10, or 20k during a window period and they give you 10 ~ 15 % cash back on any spends.
3. Their rewards program is something I have not explored as I rarely use this card.
Cons -
1. Nothing significant.
2. They do not have fraud detection on this card, meaning if you do random high value transactions you do not receive any call from the bank for re-confirmation.
7. HSBC - Visa Platinum
Pros -
1. You can apply online for this card and you get 10% cash back upto 3k for spends within first 90 days - The odds of approval are very high and I have not heard of anyone being denied or rejected even with bad credit.
2. They give you frequent cash back and offer discounts on online purchases which is good.
3. If you are charged a late payment fee, you can call customer care and have it reversed - they generally oblige (done it a few times)
Cons -
1. Their rewards program is not that good, so better to use this card for cashback offers.
8. Tata Credit Card - Mastercard (issued by SBI Bank).
Pros -
1. Getting hold of this card is a pain, not everyone who applies gets it. however it's good if you own one.
2. All SBI promotions are applicable on this card.
3. You get additional discount using this card at Tata outlets (Westside, Starcity, Tanishq etc)
4. You can redeem the points directly at Croma or other Tata outlets
Cons -
1. SBI bank is known for maximum Frauds - my card has been used in Brazil 4 times in the past and I have reported the fraud and had those reversed.
2. Their Customer care is not so co-operative better to deal with them through email.
9. ICICI Bank - Visa Platinum
Pros -
1. There are plenty of cash back offers from most online sites, this card comes handy. But with Amazon Pay Credit card, this card ideally is not required.
Cons -
1. The worst part of ICICI bank credit card is they have tied up with 'payback'. The problem is when the card is issued they automatically link it with your registered mobile number and anyother payback card you might already have - This is done without prior intimation and the real problem comes when you redeem those payback points. Whenever you redeem you payback points you get redemption fee charged on your ICICI Credit card, even though the Payback card could have been issued by Future Group, etc. - ICICI bank customer care does not help you fix it.
2. The payback points are worth peanuts and I do not recommend use this card for their rewards program, instead use it only for ongoing cashback or discounts.
10. Citi Bank - Rewards - Visa [Spend based - 30k Annually]
Pros -
1. They are prompt when it comes to cashbacks, they payout each time without follow-ups.
2. This is one of the oldest card companies in India and they still roll out promotions and give frequent cashback offers.
3. You can payout credit card bill with points however you need to accumulate atleast 3k
Cons -
1. They do not waive off annual fee if you do not spend 30k in a year, even if you threaten to close your account. So go for this card, iff and only iff you can meet this criteria, I cancelled mine this year after 12+ years of usage.
2. At times they do not send your Credit card statement even though you have some outstanding on the card, at the sametime they do not prompt you on your dues when your due date is nearing... in other words they want you to default !!
Other Better Options -
1. Paytm wallet -
When it comes to paying options Paytm rules as you can pay even street vendors and you also receive a nominal cashback or some coupons which you may or maynot use. The other best part is you re-load your wallet using any of the above listed credit cards - Voila you see you get a double benefit -
1. You use your credit card to load money into your paytm wallet (which qualifies for some cashback or rewards )
2. The payment you made using paytm will still get you some cashback or coupons + at times they also have some ongoing promotions for load money into paytm wallet
2. Paytm Payments Bank Account -
Not many people are aware of the power of this Paytm Payments bank account -
* Did you know you could load money into your Paytm Bank Account using your DEBIT CARD and didn't have to pay anything extra? *
Credit Card Payment Tricks:
1. The traditional way of paying off your credit card bills was writing a cheque and dropping it off at designated collection centres
2. Now you can do a NEFT/IMPS some banks charge some don't for this service.
3. Now this option is something you never explored or heard off - Paying off your credit card bills using a Debit card and earn 1% cash back on the Debit card transaction.- This is possible using Paytm Payments Bank.
How do I pay off your credit card bills using your Debit Card?
Paytm Payments Bank has been around for a while now, this is nothing but your traditional Savings Bank account but you load money into it through NEFT/Debit Card or Collection Centres. Paytm app has an option to pay off your credit card bills, explore the app you will see 'Credit Card', it asks you for your 16 digit card # and the amount you want to transfer. To load money to your Paytm Payments Bank account use your favourite debit Card which gives you cashback - But there is a limitation here, per transaction you are entitled to transfer only INR 2000. hence load money in multiples of INR 2000. There is also a day limit of INR 24000 + new card day limit of INR 10000 ~ 15000. If you have a huge bill to pay off say 60k, you will need to load money for 3 days before you can pay off. I have in the recent past payed upto INR 1,50,000 and earned 1500 cashback on my debit card for paying off my credit card bill :), so in short it works.
So, in short, how I get the best on my spends?
Load Money into Paytm Wallet using your favourite Credit Card and pay for spends using Paytm wallet, to pay off your credit card bills load money into your Paytm Payments Bank Account and payup using Paytm Mobile App 'Credit Card' option. here is how you benefit -
1. Load money into Paytm - Credit Card points / cashbacks
2. Pay using Paytm - you get some cashback or coupons
3. Pay your Credit Card bills - You earn cashback for using debit card to load money into your Paytm Payments Bank
Disclaimer: All recommendations are based on my personal experiences and in no way biased
This article suggests the best options out there for lifetime free Credit cards and why one should own multiple credit cards from different banks.
When you begin shopping for your daily needs you realise the ease of cashless transactions and end up using either a Debit or a Credit card. Wallet transactions were a preferred choice right after demonetisation, however soon the cash back offers slowly stopped and are no more a preferred choice of payment due to frequent reloading and additional time taken to complete the transaction.
Why Credit Card?
There are a bunch of reasons as to why one should go in for a Credit card -
1. Buy now pay later
2. Cash back offers (you generally save 5 ~ 20% on online transactions using the right Credit Card)
3. Improve your Credit Score/CIBL Score
4. Reward Points - Not Really (will explain later)
5. Complimentary Airport Lounge Access and Food (both Domestic and International)
6. Zero liability on fraudulent or loss of the card
Who should not own a Credit Card?
Generally it's good to have atleast 1 credit card, however there are few instances one should not own one -
1. Your credit card usage should be limited to your ability to pay up the following month, else you get into a debt trap, making it practically impossible to come out of - Will explain how to overcome if you are already in a debt trap.
2. You have too many credit lines open and usage on all lines are over 50% <~ this will adversely affect your Credit rating, this makes it very hard for Home loans and other Loan approvals.
3. You seem to frequently default on Credit Card Payments - This affects your Credit Score + you pay a hefty price for defaulting.
4. You own spend based Credit Cards and you never meet the targets and end up paying Annual fees more than what you asked for
What are the best options out there and which Payment Gateway should I go in for?
There are 4 main gateways who offer services in India, they are -
1. Visa - They are the largest and best, offer the maximum benefits, they again have subclass - Platinum,Signature & Infinte (premium)
2. Mastercard - They are Good, however I do not see much offers to customers
3. Amex - Most merchants decline or prefer non Amex as their service charges are higher, I see some good spend based offers
4. Rupay - Upcoming - for now, I don't see any benefits owning one.
5. Diners/Discover - Used to be good once upon a time, it's a dying gateway better to stay away.
What are the Best Lifetime Free Credit Cards out there and why?
By lifetime free, I mean no strings attached - no spend targets etc.
Most Credit Cards offered to customers are not lifetime free, if an agent calls you and tries to sell you a credit card which is lifetime free, make sure you double check either on the website or customer care after receiving the card (Before Activation). If the Card is not activated you are not liable to pay anything.
The Top 10 Cards in Order -
1. HDFC Regalia or Regalia First [Visa Platinum/Signature/Infinte Credit Card]
Pros -
1. Lifetime free if you are salaried or have savings bank account with HDFC.
2. Best card for online shopping give you Periodic CASH Back and instant discounts - Amazon, Bigbasket, Grofers, Flipkart ...
3. Free Domestic Airport Lounge access - INR 2 is charged, Free even for Add On Cards (NO other Credit card offers this feature for Free)
4. Free Priority Pass - For Primary Card holder and Dependents - This gives you International Airport Lounge access
5. Lowest Cross Currency Transaction Fee among all Credit Cards - 2.36% - This is the excess you pay for $ payments or non INR Transactions you do overseas, including current GST.
6. Customer care lines are always available and they respond to your queries, if you open a salary account with HDFC, you even get a Personal Banker to address your concerns.
7. They give you maximum re-payment window period around 45 days
Cons -
1. The card is issued based on Income Bracket and Credit Rating
2. The Reward points you accumulate is a waste as the rewards catalog sucks - Extremely Bad !!
3. The bank charges you a fee for Redeeming your points !!
4. The Bank seldom offers spend based cashback offers -
Ex: You spend INR 10k for the month and you get cashback of 2k <~ i don't see such offers being made by HDFC
2. Amazon Pay - ICICI Credit Card [Visa Credit Card]
Pros -
1. Lifetime free - unconditionally issued
2. On approval you get INR 500 Amazon Credit.
3. There are no points accumulated, it translates to cashback varying between 1 ~ 5 % and credited to your Amazon Pay balance - Which is actually good, no need to accumulate reach a threshold to redeem.
4. All on-going promotions applicable to ICICI Card take effect here - so it's a great regular use card.
5. Customer care lines are always available and respond promptly to your queries (ICICI)
Cons -
1. The initial application verification is very tedious and the agents do not show up on datetime agreed upon, they test your patience.
2. The card does not reveal it's sub-class - Platinum/Signature/Infinite. This is important as few offers are applicable only on select class
3. American Express Rewards [Amex Gateway]
Pros -
1. They rarely run lifetime free credit card promotions, you need to watch out on their website and apply for it.
2. They offer 5 ~ 15 % discounts on popular websites on periodic basis.
3. If you are a travel person you might see a lot of offers relating to travel expenditure.
4. Their reward catalog sucks, but you can opt to pay out your credit card outstanding amount using the points you have accumulated - Which is very good.
5. The reward Points NEVER Expire & there are NO REDEMPTION Charges
6. They have one of the best customer care and least wait time to get hold of an agent to address your concerns.
7. They always have a promotion where-in you make 4 transactions per month amounting to INR 1000 or more each in a calendar month you get 250 additional reward points.
Cons -
1. Odds of approval are low, they take very long to process your application and deny your application for trivial reasons - I was denied twice for not writing date below my signature, I was also denied once for un-known reason and I had to keep following up for about a month to push them to complete the process
2. For online transactions the OTP page does not load properly, frequently times out - This happens over fast network as well.
3. This card does not give you Airport Lounge access, which I feel is strange as their advertising and promotions are directed towards travel & hotel stay!
4. Yes Prosperity/Edge/Premia - [Master Card]
Pros -
1. I should say they are the best when it comes to cash back offers.
2. The trick is not to use a card for 3 to 6 months, you receive an email promotion to spend 10, or 20k during a window period and they give you 10 ~ 15 % cash back on any spends.
3. When it comes to online shopping offers I see few, but not as much as HDFC,Axis bank or ICICI Bank.
4. The reward catalog is not great, but you can redeem them for Gift cards from Big bazzar and other useful products
5. They give good cashback offers on Insurance premium Spends - especially during Financial year end.
Cons -
1. The bank charges you a fee for Redeeming your points !!
2. The bank frequently calls / messages to cross sell products and increase credit limit, use truecaller and ignore such calls.
5. Standard Chartered - Visa Platinum Rewards
Pros -
1. Like Yes Bank, I should say they are the best when it comes to cash back offers.
2. The trick is not to use a card for 3 to 6 months, you receive an email promotion to spend 10, or 20k during a window period and they give you 10 ~ 15 % cash back on any spends.
3. Their reward catalog is not great, but you can redeem them for somewhat useful Gift cards
4. The application process is online and they are very prompt and do it professionally and you don't get bugged or annoyed.
Cons -
1. The worst part of Standard Chartered bank is customer Care - You will be Charged for availing the service if it is listed on their mobile app, in other words, you must install their mobile app and try to resolve via the app, if it does not help only then call customer care, which is pain staking.
2. The bank charges you a fee for Redeeming your points !!
3. When it comes to online shopping offers I rarely see cashbacks or discounts.
6. IndusInd Bank - Visa Platinum
Pros -
1. Like Yes Bank, I should say they are the best when it comes to cash back offers.
2. The trick is not to use a card for 3 to 6 months, you receive an email promotion to spend 10, or 20k during a window period and they give you 10 ~ 15 % cash back on any spends.
3. Their rewards program is something I have not explored as I rarely use this card.
Cons -
1. Nothing significant.
2. They do not have fraud detection on this card, meaning if you do random high value transactions you do not receive any call from the bank for re-confirmation.
7. HSBC - Visa Platinum
Pros -
1. You can apply online for this card and you get 10% cash back upto 3k for spends within first 90 days - The odds of approval are very high and I have not heard of anyone being denied or rejected even with bad credit.
2. They give you frequent cash back and offer discounts on online purchases which is good.
3. If you are charged a late payment fee, you can call customer care and have it reversed - they generally oblige (done it a few times)
Cons -
1. Their rewards program is not that good, so better to use this card for cashback offers.
8. Tata Credit Card - Mastercard (issued by SBI Bank).
Pros -
1. Getting hold of this card is a pain, not everyone who applies gets it. however it's good if you own one.
2. All SBI promotions are applicable on this card.
3. You get additional discount using this card at Tata outlets (Westside, Starcity, Tanishq etc)
4. You can redeem the points directly at Croma or other Tata outlets
Cons -
1. SBI bank is known for maximum Frauds - my card has been used in Brazil 4 times in the past and I have reported the fraud and had those reversed.
2. Their Customer care is not so co-operative better to deal with them through email.
9. ICICI Bank - Visa Platinum
Pros -
1. There are plenty of cash back offers from most online sites, this card comes handy. But with Amazon Pay Credit card, this card ideally is not required.
Cons -
1. The worst part of ICICI bank credit card is they have tied up with 'payback'. The problem is when the card is issued they automatically link it with your registered mobile number and anyother payback card you might already have - This is done without prior intimation and the real problem comes when you redeem those payback points. Whenever you redeem you payback points you get redemption fee charged on your ICICI Credit card, even though the Payback card could have been issued by Future Group, etc. - ICICI bank customer care does not help you fix it.
2. The payback points are worth peanuts and I do not recommend use this card for their rewards program, instead use it only for ongoing cashback or discounts.
10. Citi Bank - Rewards - Visa [Spend based - 30k Annually]
Pros -
1. They are prompt when it comes to cashbacks, they payout each time without follow-ups.
2. This is one of the oldest card companies in India and they still roll out promotions and give frequent cashback offers.
3. You can payout credit card bill with points however you need to accumulate atleast 3k
Cons -
1. They do not waive off annual fee if you do not spend 30k in a year, even if you threaten to close your account. So go for this card, iff and only iff you can meet this criteria, I cancelled mine this year after 12+ years of usage.
2. At times they do not send your Credit card statement even though you have some outstanding on the card, at the sametime they do not prompt you on your dues when your due date is nearing... in other words they want you to default !!
Other Better Options -
1. Paytm wallet -
When it comes to paying options Paytm rules as you can pay even street vendors and you also receive a nominal cashback or some coupons which you may or maynot use. The other best part is you re-load your wallet using any of the above listed credit cards - Voila you see you get a double benefit -
1. You use your credit card to load money into your paytm wallet (which qualifies for some cashback or rewards )
2. The payment you made using paytm will still get you some cashback or coupons + at times they also have some ongoing promotions for load money into paytm wallet
2. Paytm Payments Bank Account -
Not many people are aware of the power of this Paytm Payments bank account -
* Did you know you could load money into your Paytm Bank Account using your DEBIT CARD and didn't have to pay anything extra? *
Credit Card Payment Tricks:
1. The traditional way of paying off your credit card bills was writing a cheque and dropping it off at designated collection centres
2. Now you can do a NEFT/IMPS some banks charge some don't for this service.
3. Now this option is something you never explored or heard off - Paying off your credit card bills using a Debit card and earn 1% cash back on the Debit card transaction.- This is possible using Paytm Payments Bank.
How do I pay off your credit card bills using your Debit Card?
Paytm Payments Bank has been around for a while now, this is nothing but your traditional Savings Bank account but you load money into it through NEFT/Debit Card or Collection Centres. Paytm app has an option to pay off your credit card bills, explore the app you will see 'Credit Card', it asks you for your 16 digit card # and the amount you want to transfer. To load money to your Paytm Payments Bank account use your favourite debit Card which gives you cashback - But there is a limitation here, per transaction you are entitled to transfer only INR 2000. hence load money in multiples of INR 2000. There is also a day limit of INR 24000 + new card day limit of INR 10000 ~ 15000. If you have a huge bill to pay off say 60k, you will need to load money for 3 days before you can pay off. I have in the recent past payed upto INR 1,50,000 and earned 1500 cashback on my debit card for paying off my credit card bill :), so in short it works.
So, in short, how I get the best on my spends?
Load Money into Paytm Wallet using your favourite Credit Card and pay for spends using Paytm wallet, to pay off your credit card bills load money into your Paytm Payments Bank Account and payup using Paytm Mobile App 'Credit Card' option. here is how you benefit -
1. Load money into Paytm - Credit Card points / cashbacks
2. Pay using Paytm - you get some cashback or coupons
3. Pay your Credit Card bills - You earn cashback for using debit card to load money into your Paytm Payments Bank
Disclaimer: All recommendations are based on my personal experiences and in no way biased
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