In India, credit cards are essential beyond convenience, They help build and improve credit history, crucial for securing loans and favorable interest rates from banks. With the recent integration of UPI, credit cards now offer even more convenience. Travel perks and lifestyle benefits further add to their value, making credit cards an indispensable tool.
Entry-level credit cards, often referred to as credit cards for beginners, are specifically designed for individuals who are new to using credit cards. These cards offer a range of attractive benefits while maintaining relatively simpler approval criteria. This makes them an ideal choice for those who are venturing into the world of credit cards for the first time.
Recommended Financial Profile for Applicants:
Suggested Annual Income: ₹5 Lakhs and above
Suggested Annual Spend: ₹1 Lakh and above
#1 SBI Cashback Credit Card
Best for: Up to 5% Cashback on Online Spends
Read Review & Apply: SBI Cashback Card
The SBI Cashback Card has emerged as the top choice for entry-level cardholders this year, providing an appealing 5% cashback on online expenditures. Even after a recent devaluation, the card continues to be very appealing, with a substantial monthly cashback limit of 5,000 INR, equivalent to monthly expenses of 1 lakh INR. It is especially advantageous for regular online shoppers, offering considerable savings over time.
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#2 Axis Bank's Ace Credit Card
Reward Rate: 2% – 5% (as cashback to card)
Apply Now: Axis Ace Application
The Axis Bank ACE credit card is one of the most rewarding entry-level credit cards available, offering a flat 2% cashback as statement credit. The primary downside is its availability, as it can only be applied for online through a pre-approved offer. If you have this offer, the Axis Ace card can provide substantial savings on your everyday purchases with its straightforward cashback structure.
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#3 Amex MRCC Credit Card
Best for: Gold Collection & Points Transfers
Read Review & Apply: American Express MRCC Review
The American Express Membership Rewards Credit Card (MRCC) is an excellent entry point into the world of Amex. By using this card to earn the 2000 MR bonus points monthly, you can easily achieve a return of 6% on your spends. In addition to earning points, cardholders gain access to exclusive Amex Offers, including merchant deals and spend-linked offers, which can provide additional savings and benefits throughout the year.
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#4 Amazon Pay ICICI Bank Card
Best for: 5% Return on Amazon Spends
Apply from Amazon App: ICICI Amazon Pay Application
The ICICI Amazon Pay Credit Card is a must-have for frequent Amazon shoppers, especially for Amazon Prime members. Offering a 5% return on Amazon spends, this card provides excellent value for those who shop regularly on the platform. Additionally, the card comes with the added benefit of being lifetime free, making it an ideal choice for budget-conscious consumers looking to maximize their savings on Amazon purchases.
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#5 HDFC Bank Tata Neu Infinity RuPay Card
Best for: UPI Spends & utility payments
Read Review & Apply: Apply Now
The HDFC Bank Tata Neu Infinity Rupay Credit Card stands out as a singular choice for UPI transactions. It provides substantial rewards on UPI expenditures and a compelling 5% cashback on utility bill payments. Additionally, cardholders benefit from exclusive Tata Neu promotions, such as the recent discount on Tata Motors car bookings.
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#6 Axis Bank Vistara Infinite Credit Card
Best for: Flying Vistara Business Class
Read Review & Apply: Axis Bank Vistara Infinite Review
The best airline credit card in the country consistently offers excellent rewards, even after many years of existence. It is an essential card for frequent Vistara flyers due to its gold tier benefits (available only in the first year) and for those who enjoy the business class experience, as it provides one complimentary business class ticket for approximately every 2.5 lakh spent.
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If you already possess three Axis cards, you might consider the IndusInd Vistara Explorer Credit Card, which offers similar benefits but requires a slightly higher spending threshold.
#7 HDFC Infinia Credit Card
The Infinia credit card has been a long-standing aspiration for many, offering 5X Rewards and a respectable reward rate on everyday expenditures.
If you're in search of a versatile credit card to cover all your spending needs beyond the Axis Magnus, Infinia is an excellent choice. Should Infinia be out of reach, the Diners Black (pvc) card is a comparable alternative, providing the same reward rate, albeit with a lower cap on accelerated rewards.
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Conclusion
Entry-level credit cards offer a range of benefits tailored to new credit card users. Whether you're looking for cashback on online purchases, rewards on everyday spending, or benefits on specific platforms like Amazon, there's a card to suit your needs. These cards not only help you save money but also assist in building your credit history, paving the way for future financial opportunities.
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