Most bank cards deal with sure spend classes, particularly journey, buying, gasoline, eating, and so forth. They provide advantages within the type of additional reward factors, co-branded benefits, air mile earnings, reductions, and extra. For example, gasoline bank cards are designed to offer higher advantages on gasoline spends, whereas journey bank cards supply advantages, equivalent to free lounge entry, free air miles, and further rewards on travel-linked spends.
In accordance with a current research by Paisabazaar, there are completely different sorts of bank cards to cater to the completely different wants of the shoppers. For example, Axis Financial institution Ace bank card is the perfect bank card in India for cashback because it comes with the best common cashback charge of two per cent, in accordance with Paisabazaar. Equally, SBI Card Elite comes with unique buying vouchers from some premium manufacturers as welcome reward, together with advantages of film tickets, accelerated reward factors, complimentary lounge visits, membership Vistara membership, and extra. HDFC Regalia bank card gives a variety of advantages on eating, journey, and buying.
Then there’s Flipkart Axis Financial institution bank card, which gives 5 per cent cashback on Flipkart and Myntra. Cardholders also can get 4 per cent cashback on Swiggy, Uber, PVR, and Treatment.match. This card supplies limitless cashback of 1.5 per cent on all different spends, too. Amazon Pay ICICI card is nice when you store at Amazon often, other than different advantages.
“Such bank cards provide the finest worth in return as they’re particularly designed that will help you save on choose spend classes. Through the use of these playing cards for the correct of bills, it can save you a substantial quantity. Nevertheless, do word {that a} card that focuses on a specific class could supply solely restricted benefits throughout different classes,” says Sachin Vasudeva, affiliate director and head of credit score cards- Paisabazaar.com.
For example, a gasoline bank card might be fairly rewarding once you use it for gasoline purchases, however it could not give you cashback or additional rewards on different classes. For such instances, it’s advisable to have a number of bank cards, extra so, when you spend significantly on completely different classes, the place every focuses on a special spend kind.
How Many Credit score Playing cards Ought to You Ideally Have?
You possibly can have as many bank cards as you need. However managing a number of bank cards can change into fairly troublesome. One might find yourself with a excessive quantity of debt, if bank cards will not be used neatly. Whether or not you need to have a number of bank cards or not relies upon totally on the kind of bank card that you simply maintain. For example, if an individual holds a various vary of bank cards which are very completely different from one another by way of utilization and advantages, then it’s advantageous.
For example, one might use a journey bank card for travel-related bills, and the opposite for accumulating rewards on common purchases.
Ideally, one ought to have two to 3 bank cards, every with unique options; something greater than that’s not beneficial. In truth, those that are in a position to handle with one bank card ought to stick to 1. So long as the person is making funds usually on all bank card payments, it is not going to have an effect on or have an effect on entry to different types of credit score. For many who are operating their very own enterprise, it is sensible to have one bank card for private use and one other just for enterprise use.
Provides Vasudeva: “Whereas selecting your second or third bank card, you need to contemplate the options of the present playing cards and attempt to get a card with a special set of advantages. For instance, if you have already got a bank card that gives cashback throughout classes, getting one other card with an excellent reward charge or travel-focused advantages can be a greater choice.”
Having mentioned that, there are a number of advantages of getting a number of bank cards, too. When you personal a number of playing cards, you might unfold your bills throughout completely different playing cards primarily based on the advantages and rewards construction so as to take advantage of out of every card.
Having a number of playing cards additionally permits you utilise the interest-free interval on every card optimally. In case you have playing cards from completely different suppliers, additionally, you will have a greater likelihood of availing their restricted interval gives, like these on e-commerce platforms. Additionally, those that have a number of bank cards and are nonetheless in a position to make all funds on time, will seemingly have an excellent credit score rating to boast of. This could additionally improve their credit score worthiness and open entry to extra credit score alternatives.
