Suggest me 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.

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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:

• 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.

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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.

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• 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.

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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/