Top 5 Credit Cards for First-time Users

As soon as you start with your first job, banks will come forward to offer you credit cards. A number of people think that debt is bad but the truth is- when you use debt smartly and responsibly, it will not only help you build a good credit profile but also pave the way for fulfilling bigger dreams. There is nothing better than a credit card to step into the credit arena. Banks would initially allow a lower credit limit to you and if you handle your finances smartly, a credit card will go a long way in building and improving your credit score.

A credit card will help you in the following ways-

• It introduces you to credit and helps you understand why building credit is important.
• It allows you to make your dream purchases (for which you cannot afford to pay upfront) and pay them back in easy EMIs over a period of time.
• It teaches you the basics of using a credit card and how a missed payment or default can affect your credit score.
• It helps you learn the nuances of using debt to improve credit score.

There are a lot of benefits that you can enjoy on a credit card. But it is also important to compare the features and benefits on different cards to find out the one that suits you the best.

So, here we will list the top 5 options for credit cards to apply online without having any prior credit history.

1- HDFC Money Back Credit Card

This is the perfect credit card for first-time users as it is a low-cost credit card and lets you earn while you spend. Some of the benefits offered on this credit card are-

• It is available at an annual fee of Rs. 500 only.
• Users can earn 2 reward points for every Rs. 150 spent on the card.
• Online spending gives you double reward points.
• Redeem reward points directly against statement credit.
• Avail 1% Fuel Surcharge waiver on minimum fuel transactions of Rs. 400.
• Enjoy 50-day interest free period from the date of purchase.
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What makes it a good credit card for first-time usersij

• low annual fee
• Extra reward earnings
• Saving on fuel
• Milestone benefits
• Reward redemption into statement credit

2- ICICI Bank Platinum Chip Credit Card

This card is available at a minimal fee and offers great value with exciting benefits. Given below are some of its features-

• Avail 1% fuel surcharge waiver on maximum transaction of Rs. 4,000 at HPCl pumps.
• Card holders can earn 2 PAYBACK points on every Rs. 100 spent on the card except fuel.
• The card has built-in contactless technology that ensures quick and secure payment.
• Enjoy minimum 15% saving under the Culinary Treats Program in restaurants across the world.
• Get your joining fee reversed if you spend Rs. 2,000 within 60 days of card issuance.

What makes it a good credit card for first-time usersij

• Minimal fees
• Significant Fuel Saving
• Reward earnings
• Easily manageable

3- HSBC Platinum Credit Card

This credit card does not attract any joining fee or annual fee and gives you back in the form of rewards and direct discounts. Some exciting benefits that you can enjoy on this card include-

• On making first transaction, you will get a Cleartrip voucher worth Rs. 2,000.
• 2 reward points are offered on every Rs. 150 spent on the card.
• Reward points have 3-year validity and can be redeemed against an exciting range of gift vouchers and merchandise.
• Dining, hotels and telecom spend lets you earn 3-times more rewards.
• Avail 1% fuel surcharge waiver on fuel transactions ranging between Rs. 400 and Rs. 4,000.
• Under HSBC Dining Privileges, get up to 15% discount at partner restaurants.
• Spend Rs. 50,000 in a calendar month and get Rs. 500 movie voucher.

What makes it a good credit card for first-time usersij

• lifetime free
• Instant EMI benefit
• High reward earnings
• Dining and hotel discounts
• Savings on fuel transactions
• Milestone benefits

4- YES Bank Prosperity Rewards Plus

This credit card by YES Bank is again a great choice for first-time credit card users as it comes with the following features and benefits-

• Offered at an annual fee of Rs. 350 reversed on spend of Rs. 7,500 within 90 days of card issuance.
• Spend Rs. 5,000 within 30 days of card activation and get 1,250 reward points.
• Reach total spending of Rs. 3.6 lakhs in a year and get 12,000 bonus reward points.
• Convert accumulated reward points into JP Miles. (4 RP = 1 JP Mile)
• Avail fuel surcharge waiver at all fuel stations across India when you make a fuel transaction worth Rs. 400 to Rs. 5,000.
• Enjoy accelerated rewards on Birthday, Dining, International and Online Spends.

What makes it a good credit card for first-time usersij

• Minimal annual fee
• Accelerated rewards
• Preferential interest rates for YES Bank customers
• Exciting reward benefits
• Fuel surcharge waiver

5- SCB Platinum Rewards Credit Card

If you have reached a salary of Rs. 50,000 but do not have any credit card, this can be a good option. Some of the benefits offered on this card include-

• This card attracts an annual fee of Rs. 250.
• Earn 1 reward point on every Rs. 150 spent on this credit card.
• Earn 5 times more reward points on dining and fuel spends.
• Enjoy a host of discounts and offers under the Standard Chartered Good life programme.
• Convert big-ticket purchases into easy EMIs.

What makes it a good credit card for first-time usersij

• Minimal fees and charges
• Easy EMI conversion
• Dining discounts
• Extra rewards on fuel transactions

So, these are the top five options if you are new to credit cards. However, your choice of credit cards should also depend on some other factors. There are two main questions you need to ask yourself are- 1) why you need a credit card, and 2) how do you want to use it.

You can take a credit card solely to build your credit or to purchase a big-ticket item for which you cannot afford to pay a lump-sum but you should be sure about your objective. If it is about building credit, you can take a basic credit card with standard features and pay your utility bills or make grocery purchases using it. However, if the main purpose is to shop, you may want to look for cards that provide some benefits related to apparel/footwear brands, e-commerce websites, etc. What we would suggest here is to look for cards that offer composite benefits without charging too big in the form of annual fee.

Secondly, the choice of card should also depend on the type of transactions you want to make in future. For example, if you are a frequent traveller, you should look forward to a card that offers travel-related benefits. On the other hand, if you are a movie-goer, apply for a credit card that offers movie vouchers or free tickets. Credit cards are designed to offer specific benefits so you can choose one that matches your spending personality. If you wish to compare the offers of other bank credit cards as well then visit Paisabazaar.com and apply for the card of your choice hassle free online.