While ideally staying away from debts is the best way forward, this may not always be possible. Most of us are living in a world, where we are barely able to manage between expenses and income. In such situations, it is quite apparent that we might need to look for borrowed funds for various reasons. It could be for a medical emergency, a sudden travel, buying a mobile phone, or some other consumer durables or even for booking a dream car and much more.
Hence, whether it is desirable or undesirable, there is a growing demand for the best Credit Cards in India. It is considered to be an important financial tool. Apart from what has been mentioned above, Credit Cards are also useful when it comes to booking Rail Tickets, Air Tickets, Paying for Grocery Bills, payment of Electricity Bills, and more. They do provide the much-needed convenience and also ease the cash-flow situation. There are thousands of customers who have more than one Credit Card.
While this could indeed mean more cash and purchasing power in your hands, you need to exercise care and caution when dealing with more than one Credit Card. Let us try and understand how banks and financial institutions in India offer more than one Credit Card to their customers. We also will look at the Pros and Cons of having multiple Credit Cards. Additionally, we also will try and find something more about the various attributes that one should bear in mind while choosing the best Credit Cards in India.
• Convenience and Flexibility: Backup Credit Cards can undoubtedly improve flexibility and convenience. If you have only one Credit Card and that breaks down or gets stolen, then it will certainly put you in trouble. It might take a few days or perhaps even a few weeks for the replacement Credit Card to get issued. This could cause severe problems for your cash flow situation. Owning multiple Credit Cards, you can better manage your cash flow situation.
• Lesser risk of frauds: Doing all your transactions using a single Credit Card could expose the customer to a higher risk of fraud. Hence, it would not be a bad idea to choose multiple Credit Cards over and above the one that you might be using for years.
Fraudsters and online misappropriation happen mostly for those who are dependent on a single Credit Card.
• Higher Credit Card rewards: If you love to accumulate Credit Card rewards and redeem the benefits, having multiple Credit Cards could be a good idea. For example, you could use different Credit Cards for accumulating rewards points on flight travel, hotel bookings, grocery purchases, and other things. These can be redeemed to earn much higher value back offers against a single Credit Card. However, here again, the responsibility lies on to the customers to do some research and choose the best credit cards in India.
• Credit line for online purchases: There is no doubt that online purchases are convenient and safe. Many Credit Card companies set an impressive credit line for online purchases. It could come in handy for purchasing quite a few things for your home. If you have multiple Credit Cards, it is quite obvious that you will be eligible for more than one online credit line and that could be a big boost when it comes to managing your cash flows.
• Improve your credit rating: If you are able to manage multiple Credit Cards and are disciplined in your spending and repayment habits, it could give a significant boost to your credit history and your credit score will look impressive. This will come in handy when you go for a home mortgage loan or other long term financial commitments.
• Risk of overspending: With multiple credit lines from the best credit cards in India, many of us often tend to go overboard as far as spending habits are concerned. Many Credit Card borrowers have accumulated huge Credit Card bills across multiple cards because of their inability to manage payments and expenses efficiently.
• Tough to manage: Having multiple Credit Cards could be a tough task to manage as far as the repayments, due dates, and outstanding balances are concerned.
A Look at the Best Credit Cards
Now that we have a reasonably good idea about the pros and cons of having multiple Credit Cards let us have a look at some of the best Credit Cards in India.
• HDFC Bank Diners Credit Card – This is one of the best Credit Cards in the market today and coming from a combined strength of HDFC Bank and Diners it certainly is worth a closer look. It has a decent credit limit, and the annual fee is waived off if the spending is around a Lakh of rupees in the first ninety days.
• Citi Cashback Card – If you are keen on getting attractive cash back offers on your regular spending, then Citi Cashback Card would be one of the best choices. The first year fee is Rs.500, but this will get more than compensated because of attractive cash backs on movie ticket purchases, utility bill payments, and telephone bill payments.
• HSBC Visa Platinum Card – This is an attractive option for all those who are on the lookout for the best credit cards in India. Apart from a decent credit limit, they also have an attractive point accumulation program. You also become eligible for Cleartrip vouchers and various other options.
The Final Word
While there is no shortage of available credit cards offers in India, as a customer, you must do your research and choose the right card. Further, while there is nothing wrong in having multiple Credit Cards, you must know how to draw a balance between the benefits of multiple cards and the risks involved in it.