Guide to suggest a credit card - Basic requirements

[helloworld]

How to Choose the Right Credit Card for You

Simply looking at your CIBIL score or listing your existing cards won't help determine the most suitable credit card for you. To make an informed choice, you need to consider various factors.

Key Steps to Select a Credit Card:​

1. Identify Your Spending Categories
   
   Look at your monthly or annual expenses and categorize them. This will help determine which card gives the best rewards for your spending pattern.
   
   Example:
   • Amazon: ₹5,000
   • BigBasket: ₹5,000
   • Offline Grocery: ₹10,000
   • Bills/Utilities: ₹10,000
2. Determine Preferred Redemption Options
   
   Decide whether you prefer:
   • Cashback or Vouchers
   • Miles or Points that can help with booking flights or hotels
3. Know Your Current Rewards Structure
   
   Check the reward rate on your existing cards for these spends. This helps you understand if upgrading or adding another card would be more beneficial.
   
   
4. Leverage Milestone Cards
   
   Some cards offer milestone benefits after a certain amount of spend. Make sure to maximize your reward rate by taking advantage of these offers.
   
   
5. Assess Your Income & Spending Power
   
   Your income bracket influences which cards you can apply for.
   • High-spend, high-income users may be eligible for premium cards like Infinia.
   • Low-spend or low-income users may benefit from entry-level cards like Millennia.
6. Existing Bank Relationships
   
   If you already have a relationship with certain banks, you can fast-track upgrades. Banks also consider credit limits and spending behavior to offer higher-tier cards or upgrades.

---

Example Scenario: Annual Spending of ₹2,00,000

• Amazon Pay: ₹20,000
• Flipkart: ₹10,000
• Swiggy/Zomato: ₹22,000
• Flights/Hotels: ₹30,000
• Grocery (Offline): ₹20,000
• Other Offline Spends: ₹10,000
• Dining: ₹8,000
• Bills/Utilities: ₹25,000
• Govt. Payments: ₹10,000
• Insurance: ₹45,000

Recommended Cards & Reward Rates (when spending entire 2L on single card with fee waiver, pick anyone):

• Live+: 3% (Cashback)
• Ultimate: 2.67% (Marriott voucher)
• Tata Neu Infinity: 2.4% (TataNue voucher)
• Amex Gold: 2% (Amazon vouchers)

And don't have to pay fee for all 4 cards because 2L sufficient to get the waiver with best rewards/cashback when spending on all categories with single card.

---

​

Additional Insights:​

• Annual Fees vs. Benefits:
  • High-end cards may come with fees but can offer significant rewards if your spending justifies the cost.
    • higher fee card doesn't provide much benefits compared to lower fee card (because of spend requirement*)
    • fee based cards provide much value compare to LTF cards (because of benefits*)
• Spending Consolidation: Instead of splitting small spends across multiple cards, focus on one or two that maximize your reward rate in key categories.
  • Pros: More cards mean access to more offers (e.g., 10% instant discounts).
  • Cons: It can lead to confusion if not managed properly, missed payments, and failing to maximize returns or milestoneson your best card.
    • Also, spending on one card (instead split to multiple cards), can help you fasttrack upgrade to your favourite card.
• International Usage: If you travel abroad frequently, look for cards with >0% foreign transaction fees (not 0% there are cards that provide net return as +ve %).
  
  
• Impact on Credit Score:
  • Increases Credit Score: Having multiple cards can improve your credit score due to higher available credit and lower credit utilization.
  • Decreases Credit Score: On the flip side, managing too many cards poorly can lower your score if you're late on payments or overextend your credit.

---

• Do you really need 10th card? Can you manage without any trouble (have a plan on not to miss payment)?
• Which categories you're not getting proper return?
• How do you spend monthly (categories and apprx. amount)?

I know its sound against to the most people here but 'you don't have to go for all LTF cards available in the market', what's good it serve if we do not use them especially occasional usage reduces the spend amount in most used card and reduces its milestone or chances to upgrade to higher variant.

We evolve overtime, so do banks. You can't use the same card life time, eventually you have to upgrade to get better rewards. So, If possible, earn something like super-premium cards range (not UHNI), and try to get them as LTF otherwise basic cards LTF without usage, not much useful. IMO, no basic/premium card can survive 3 years (either with devaluation or changing our lifestyle).

To get the best net return %:

upto 2L: 1 or 2 cards
upto 5L: 3 to 5 cards (basic to premium)
upto 10L: 2 to 3 cards (this time these are reward based premium cards)

Note: These views are personal opinions and may not suit everyone, especially those looking to build a credit card collection. This advice is intended for those seeking to optimize their spending and rewards, not for card collectors or individuals focused on acquiring multiple cards.

Remember, the key rule for any credit card user is to always pay your bills on time to avoid penalties and keep your credit healthy.

---

Some threads to help on how to look features & benefits of credit cards:

- Best card b/w Reserv & Marquee: https://www.technofino.in/community/threads/yes-marquee-vs-yes-reserv-3x-vs-yes-reserv-5x.24652/
- Best card b/w Atlas, Regalia & Horizon: https://www.technofino.in/community/threads/atlas-vs-regalia-gold-vs-horizon.26500/
- Best card b/w AMEX: https://www.technofino.in/community/threads/amex-mrcc-vs-gold-vs-travel-vs-reserve.30606/
- Worst card b/w Privilege & Select: https://www.technofino.in/community/threads/privilege-vs-select-curious-case.25922/
- Ok card b/w AU: https://www.technofino.in/community/threads/which-au-card-to-choose-a-short-summary.28983/

 

[vine]

Very well explained!! 👏🏽👏🏽

Please rename to something like:
Guide to
Wiki to
FAQ for

Title se laga helloworld wale uncle bhi aise sawaal puchne lag gaye toh hamara kya hoga

 

[Desu Sarath]

Too good info to be missed

 

[helloworld]

Very well explained!! 👏🏽👏🏽

Please rename to something like:
Guide to
Wiki to
FAQ for

Title se laga helloworld wale uncle bhi aise sawaal puchne lag gaye toh hamara kya hoga

I thought but problem is when its Guide or FAQ, no one read that 🙂

Anyway, modified. T!

 

[cardio_guy]

You are TF legend for a reason. Didn't know you had authored so many good useful posts before. Going through the linked posts, one news not even create a new post on card suggestion. Everything is crystal clear in your explained posts. Wow. Just awesome. You have good clarity of thoughts. Well planned and arranged.

 

[helloworld]

Spend Category Suggestions:

Why is this important?

Understanding spend categories helps distinguish between online shopping, general online purchases, offline spending, utility payments, and more. Some credit cards provide accelerated rewards only on specific categories, such as shopping, while others may not apply to different types of spending. This helps you shortlist the right card based on your spending habits.

Additionally, some cards are tied to specific websites or apps, maximizing the benefits if you use them correctly.

(Sample) Spend category suggestions:

Online:​

• Amazon Pay: Can also be used for utilities, insurance, bill payments, and more, as it serves as a payment option across most apps.
• Amazon Shopping: Pure shopping, especially during festive seasons.
• Flipkart: Some users also use this for travel bookings, which might make a difference when choosing cards that provide rewards for specific categories.
• Myntra
• AJIO
• Swiggy / Zomato: Food delivery; split these if a card offers specific benefits.
• BigBasket / Blinkit: Online grocery shopping.
• Vouchers: Applicable for various purposes.
• Flights / Hotels
• Other Online Spends

Offline:​

• Grocery / Supermarkets
• Gold / Jewellery
• Apparel / Departmental Stores
• Dining
• Fuel
• Other Offline Spends

Special Categories:​

• Bills / Utilities: Payments that aren’t covered by online platforms and must be paid directly.
• NPS / Govt. / Educational Services
• Insurance
• Forex Spends ($)

By breaking down your spending into these categories, you can optimize your card usage to get the most rewards. Instead of focusing on broad categories like "Online spends = ₹1L per month," narrowing down helps you choose the right card for each specific spending area, maximizing the benefits.

Well, technically all of them based on MCC but helps you better to see card benefits.

 

[helloworld]

Basic Cards as Lifetime Free (LTF) May Not Be the Best Choice​

Opting for basic cards as LTF might seem appealing at first, but they often become unusable because of your increased spends and changes in preferred redemption. Also, basic cards often come with limits for earning and redemption restrictions, making it inconvenient to maximize rewards and benefits in the long run.

If it were 2021, the HDFC Millennia card might have been a solid choice. It remains a decent option even now, but not as an LTF card. Why? Because in reality, you probably wouldn't hold onto a basic card like Millennia for more than three years. Plus, gift voucher offered by bank itself compensate for 3 years (which is too long and sufficient for this card, IMO).

Ex:

• 2023: SBI Cashback launched and becoming popular which offers Millennia benefits + More.
• 2024: HDFC itself introduced the Swiggy card, offering more benefits than their Millennia.

Given this ever-changing market, it makes sense to upgrade or switch cards instead of holding onto a basic card that may not serve you well in the long run.

 

[S U D O]

Basic Cards as Lifetime Free (LTF) May Not Be the Best Choice​

Opting for basic cards as LTF might seem appealing at first, but they often become unusable because of your increased spends and changes in preferred redemption. Also, basic cards often come with limits for earning and redemption restrictions, making it inconvenient to maximize rewards and benefits in the long run.

For example, if it were 2021, the HDFC Millennia card might have been a solid choice. It remains a decent option even now, but not as an LTF card. Why? Because in reality, you probably wouldn't hold onto a basic card like Millennia for more than three years. Plus, gift voucher offered by bank itself compensate for 3 years (which is too long for this card, IMO).

Ex:

• 2023: SBI Cashback launched and becoming popular which offers Millennia benefits + More.
• 2024: HDFC itself introduced the Swiggy card, offering more benefits than Millennia.

Given this ever-changing market, it makes sense to upgrade or switch cards instead of holding onto a basic card that may not serve you well in the long run.

Couldn't agree more !
Very true

 

[MudraMantra]

How to Choose the Right Credit Card for You

Simply looking at your CIBIL score or listing your existing cards won't help determine the most suitable credit card for you. To make an informed choice, you need to consider various factors.

Key Steps to Select a Credit Card:​

1. Identify Your Spending Categories
   
   Look at your monthly or annual expenses and categorize them. This will help determine which card gives the best rewards for your spending pattern.
   
   Example:
   • Amazon: ₹5,000
   • BigBasket: ₹5,000
   • Offline Grocery: ₹10,000
   • Bills/Utilities: ₹10,000
     
2. Determine Preferred Redemption Options
   
   Decide whether you prefer:
   • Cashback or Vouchers
   • Miles or Points that can help with booking flights or hotels
     
3. Know Your Current Rewards Structure
   
   Check the reward rate on your existing cards for these spends. This helps you understand if upgrading or adding another card would be more beneficial.
   
   
4. Leverage Milestone Cards
   
   Some cards offer milestone benefits after a certain amount of spend. Make sure to maximize your reward rate by taking advantage of these offers.
   
   
5. Assess Your Income & Spending Power
   
   Your income bracket influences which cards you can apply for.
   • High-spend, high-income users may be eligible for premium cards like Infinia.
   • Low-spend or low-income users may benefit from entry-level cards like Millennia.
     
6. Existing Bank Relationships
   
   If you already have a relationship with certain banks, you can fast-track upgrades. Banks also consider credit limits and spending behavior to offer higher-tier cards or upgrades.

---

Example Scenario: Annual Spending of ₹2,00,000

• Amazon Pay: ₹20,000
• Flipkart: ₹10,000
• Swiggy/Zomato: ₹22,000
• Flights/Hotels: ₹30,000
• Grocery (Offline): ₹20,000
• Other Offline Spends: ₹10,000
• Dining: ₹8,000
• Bills/Utilities: ₹25,000
• Govt. Payments: ₹10,000
• Insurance: ₹45,000

Recommended Cards & Reward Rates (when spending entire 2L on single card with fee waiver, pick anyone):

• Live+: 3% (Cashback)
• Ultimate: 2.67% (Marriott voucher)
• Tata Neu Infinity: 2.4% (TataNue voucher)
• Amex Gold: 2% (Amazon vouchers)

And don't have to pay fee for all 4 cards because 2L sufficient to get the waiver with best rewards/cashback when spending on all categories with single card.

---

​

Additional Insights:​

• Annual Fees vs. Benefits:
  • High-end cards may come with fees but can offer significant rewards if your spending justifies the cost.
    • higher fee card doesn't provide much benefits compared to lower fee card (because of spend requirement*)
    • fee based cards provide much value compare to LTF cards (because of benefits*)
      
• Spending Consolidation: Instead of splitting small spends across multiple cards, focus on one or two that maximize your reward rate in key categories.
  • Pros: More cards mean access to more offers (e.g., 10% instant discounts).
  • Cons: It can lead to confusion if not managed properly, missed payments, and failing to maximize returns or milestoneson your best card.
    • Also, spending on one card (instead split to multiple cards), can help you fasttrack upgrade to your favourite card.
      
• International Usage: If you travel abroad frequently, look for cards with >0% foreign transaction fees (not 0% there are cards that provide net return as +ve %).
  
  
• Impact on Credit Score:
  • Increases Credit Score: Having multiple cards can improve your credit score due to higher available credit and lower credit utilization.
  • Decreases Credit Score: On the flip side, managing too many cards poorly can lower your score if you're late on payments or overextend your credit.

---

• Do you really need 10th card? Can you manage without any trouble (have a plan on not to miss payment)?
• Which categories you're not getting proper return?
• How do you spend monthly (categories and apprx. amount)?

I know its sound against to the most people here but 'you don't have to go for all LTF cards available in the market', what's good it serve if we do not use them especially occasional usage reduces the spend amount in most used card and reduces its milestone or chances to upgrade to higher variant.

We evolve overtime, so do banks. You can't use the same card life time, eventually you have to upgrade to get better rewards. So, If possible, earn something like super-premium cards range (not UHNI), and try to get them as LTF otherwise basic cards LTF without usage, not much useful. IMO, no basic/premium card can survive 3 years (either with devaluation or changing our lifestyle).

To get the best net return %:

upto 2L: 1 or 2 cards
upto 5L: 3 to 5 cards (basic to premium)
upto 10L: 2 to 3 cards (this time these are reward based premium cards)

Note: These views are personal opinions and may not suit everyone, especially those looking to build a credit card collection. This advice is intended for those seeking to optimize their spending and rewards, not for card collectors or individuals focused on acquiring multiple cards.

Remember, the key rule for any credit card user is to always pay your bills on time to avoid penalties and keep your credit healthy.

---

Some threads to help on how to look features & benefits of credit cards:

- Best card b/w Reserv & Marquee: https://www.technofino.in/community/threads/yes-marquee-vs-yes-reserv-3x-vs-yes-reserv-5x.24652/
- Best card b/w Atlas, Regalia & Horizon: https://www.technofino.in/community/threads/atlas-vs-regalia-gold-vs-horizon.26500/
- Best card b/w AMEX: https://www.technofino.in/community/threads/amex-mrcc-vs-gold-vs-travel-vs-reserve.30606/
- Worst card b/w Privilege & Select: https://www.technofino.in/community/threads/privilege-vs-select-curious-case.25922/
- Ok card b/w AU: https://www.technofino.in/community/threads/which-au-card-to-choose-a-short-summary.28983/

very well explained.

 

[helloworld]

Best Cashback Credit Cards for 3L annual spends 2024:

• HDFC Swiggy / SBI Cashback (anyone): Online Spends = 1.5L (4.2%)
• HSBC Live+ / Axis Airtel (anyone): Offline Spends & Online Grocery Spends = 1L (6%)
• BoB Snapdeal: Offline UPI Spends = 50K (0.4%)

Net: ~5.5% (Or opt for AU Lit and spend same on that card and get around ~6% on single card itself).

Few things to keep in mind in 2025:

• Avoid "What-If" trap (that keep you busy and distract you from the task you wanted to focus on) // those 10% rarely used offers which reduces overall cashback and/or gives less rewards which you can't redeem and/or reduce upgrade changes to get better and/or sometimes it works.
  • Generally people use 10% offers (when talking about majority people) at max they can use only 2-3 times in a year for big items, 4-5 times in a year for medium items. Rest is like purchase what you can afford!
• Generalized and varies as per your usage categories (check above for sample suggestions for categories).
• You don't need 10's of cards to get desired cashback/points, few sufficient and able to handle your expenses very well - just have to figure them.

 

[TheGuy]

Best Cashback Credit Cards for 3L annual spends 2024:

Puts in perspective- effective returns. Thanks!

What is your view - when some people keep a certain card (say BoB LTF ANY) for BoB Offers? If Leverage is not concern, and neither is payment difficulty (i.e. tendency to forget paying- if less used).

 

[helloworld]

Puts in perspective- effective returns. Thanks!

What is your view - when some people keep a certain card (say BoB LTF ANY) for BoB Offers? If Leverage is not concern, and neither is payment difficulty (i.e. tendency to forget paying- if less used).

It might lead to impulsive spending or help you grab a 10% discount on something you really want. Both sides of the coin!

Think back over the last 2 years, did you actually miss out on something that made you feel you needed BOB, and no other card could fill that gap?

IMO, 10% discounts are usually capped at 1K. For me, most big purchases are around 18K, and if I stretch, 23K. But BOB or most 10% cards only offer 1K or 1.5K max. If you spend 25K, you get another 1K, and so on.

For example, spending 18K on a 10% offer means you actually get 8.3% if the max is 1.5K, which is pretty close to what other cards offer.

Let’s say there’s a 2% difference compared to other cards listed above, personally, that 2% makes me reconsider my purchase. Sometimes, I even find the same thing at a lower or equal price, without needing the 10%.

It really depends on your spending habits; this is just some perspective.

When I saw SBI offers everywhere, in malls, stores like Max, or during online sales etc. I thought the card would give me 10%. But after getting it, I realized it required a minimum spend of 5K, which wasn’t always possible for me. Then there’s the 10% cap (like max 1K) or needing to spend another 15K to get an extra 1.5K. These limits felt like barriers, they made me lose value or spend more than I wanted to.

I ended up closing the card after not using it for over 3 years, and honestly, no regrets.

For me, 10% feels more like 7% after considering all these caps and restrictions. If I can find something close to 7%, I’m happy because it gives me more freedom without the strings attached to 10%.

 

[TheGuy]

Thanks for the detailed answers. Helps even more than I expected.

. If I can find something close to 7%,

This is referring to other cards, right?

Sometimes, I even find the same thing at a lower or equal price, without needing the 10%.

at another retailer?

---

It really depends on your spending habits; this is just some perspective.

a rich one at that 🙂 covers all bases.

 

[helloworld]

This is referring to other cards, right?

yes, applies all. Whatever we need that is sufficient imo.

at another retailer?

most of the time same website with our card (just not at that time).