If you are getting your first credit or wish to upgrade the existing one, then you might find selecting the best credit card in India very daunting. With an array of banks, reward structures and myriad of unadvertised costs, what truly meets your lifestyle?
This guide provides the details in a practical, simple and clear manner so you are able to make an informed decision with conviction.
Why Selecting the Proper Credit Card is Important
More than just a plastic payment tool, a credit card is a financial instrument that may affect your:
- Monthly budget
- Credit score
- Lifestyle benefits
- Long-term financial health
Selecting a suitable credit card will make certain that you save more, enjoy better benefits, and stay clear of extra fees.
Credit Card Types in India
Understanding what is available in the market first may help you make a better decision. Below are the primary categories of credit cards available in India:
| Credit Card Type | Ideal For | Features |
|---|---|---|
| Rewards Credit Cards 🏆 | Everyday spenders | Earn points for purchases, redeem for vouchers/gifts |
| Cashback Credit Cards 💰 | Budget-conscious users | Get back a % of what you spend on select categories |
| Travel Credit Cards ✈️ | Frequent flyers | Air miles, free lounge access, hotel discounts |
| Fuel Credit Cards ⛽ | Car/bike owners | Fuel surcharge waivers, cashback on petrol pumps |
| Shopping Cards 🛒 | Online shoppers | Discounts on platforms like Amazon, Flipkart, Myntra |
| Co-branded Cards 🎉 | Brand loyalists | Offers tied to airlines, retail stores, fuel companies |
| Secured Credit Cards 🔐 | Low/no credit score holders | Backed by fixed deposits, helps build credit score |
| Student Cards 🎓 | College students | Low limits, simple eligibility, basic rewards |
Every type of card has a designated spending pattern. The best credit card in India is the one that suits your lifestyle, not someone else’s.
Things To Deem While Choosing A Credit Card
This is what needs to be considered when comparing credit cards:
1. Your Spending Patterns
Answer these questions:
- What do you spend more on: travel, dining, groceries or even online shopping?
- Are you a frequent flyer or do you mostly travel by train?
- Do you prefer lifestyle perks or saving on fuel?
Example: If you spend 15,000 a month on groceries and online shopping, a cashback card will allow you to save money unlike travel-focused cards.
2. Interest Rates (APR)
- The APR (Annual Percentage Rate) refers to the interest incurred on the outstanding payments.
- In India, credit cards generally fall within the range of 30-45% per annum.
Pro Tip: If you intend to pay your bill in full every month, the APR won’t be of much concern. But if you think you might carry a balance, opt for low-interest cards.
3. Annual & Joining Fees
Many cards waive the annual fee if you meet a minimum yearly spend (e.g., ₹1 lakh).
- Zero Annual Fee Cards are good for minimal users.
- Premium Cards usually come with a fee of 999-5000 but provide lounge access, concierge services, and enhanced rewards.
Verify if:
- The joining bonus is greater than the fee.
- The benefits surpass the expenses over time.
4. Rewards And Cashback Programs
Every card carries its own distinct reward policy:
- Rewards of Points for Every ₹100 Spent
- Category Exceeding Multiplier (e.g. 5X Dining, 10X Travel)
- Different Ways to Redeem Rewards – vouchers, tickets, straight cash, etc.
Pick a card whose daily spending helps maximize reward accrual.
5. Eligibility & Credit Score
For acquiring most cards in India, you’ll need:
- A monthly income – Generally ₹15,000 – ₹50,000 + depending on the card.
- A credit score – 700+ for good cards, 750+ for premium.
New to credit? A secured credit card (against FD) is great for jumpstarting your credit score!
6. Acceptance & Network
Make sure your card is accepted as widely as possible:
- Visa, Mastercard, RuPay, and American Express are the main networks.
- Certain merchants or platforms may block certain cards (for instance, AmEx at small merchants).
If you plan on traveling or purchasing goods from international sites, check if your card has affordable foreign transaction rates.
Choosing the Best Credit Card
This 5 mini-sessions guide will get you started on selecting your optimal card.
Step 1: Identify Your Objectives
“Do I want to earn rewards, work on my credit score, or check my transactional spending?”
Step 2: Align with Card Type
E.g.: Love shopping? → Search for cards with e-commerce cashback.
Travel frequently? → Get a card with lounge access and miles.
Step 3: Assess Key Metrics
Pay attention to:
- Interest rate (APR)
- Annual/joining fee
- Reward rate
Offers and categories, and redemption flexibilities.
Step 4: Verify Your Criteria
Don’t just apply. Research. Using free resources like Zest Dhan’s eligibility checker can save you undesirable outcomes whereyour application rejection negatively impacts your credit score.
Step 5: Selecting Cards to Apply FOR
Have 1-2 cards in mind to be selected and submit the application request online. Avoid bulk applications as they negatively counters multiple submission ethos.
Best Way to Manage a Credit Card
After acquiring an ideal credit card in India, guidelines outlining its best use should be kept in mind:
- No Interest Charges If Full Balance is Paid Monthly
- Regularly Check Statements for Errors or Unauthorized Activities.
- Redeem Available Points Before Expiry.
- Credit Score Boost When Keeping Utilization Below 30%
- Withdrawal of Cash Should Be Avoided Due to Fees Charged.
Smart credit card use will allow the user to save money instead of accumulating debt.
Credit Cards Most Used in India (2025)
The credit cards listed below have been rated high based on objectives shared by the general public:
| Card Name | Best For | Key Features |
|---|---|---|
| HDFC Millennia | Cashback, online spends | 5% cashback, ₹1000 joining fee, lounge access |
| SBI Simply Click | Online shopping | 10X rewards on Amazon, BookMyShow |
| Axis ACE Credit Card | Utility bill payments | 5% cashback on Google Pay, low annual fee |
| ICICI Amazon Pay Card | Amazon Prime users | Up to 5% cashback on Amazon, no annual fee |
| AU Small Finance Zenith | Dining & lifestyle | Cashback + complimentary golf/lifestyle privileges |
| Axis Vistara Infinite | Travel + Premium perks | Free flight ticket, Club Vistara Gold status |
Overarching Statement: Make Smart Choice and Spend Smarter
The best credit card should not be evaluated just based on the high bonuses or rewards. Instead, they should focus on a card that will fit with their lifestyle, income and financial goals.
The right credit card should provide real value to students and also reward professionals looking to get the most out of their card – if chosen correctly.
Pick the Best Fitting Credit Card For Yourself Today
ZestDhan can assist you with:
- Reviewing the best credit cards available in leading banks.
- Determining your eligibility in real time.
- Gain insights on the fees, rewards, and the actual costs indisputably.
No fluff. No misguided information. Just the card you actually need.
Go ahead and check what ZestDhan has for you to apply.