Also Consider: Scotiabank Gold American Express*
The Scotiabank Gold American Express has been a longtime favourite for Canadians, especially those who travel. The first thing youll notice about this card is the Scotia Rewards earn rate is a very healthy 5 points per $1 on groceries, dining and entertainment. Gas gets 3 points per $1, as do spends in two other categories: Public transit and eligible streaming services. All other purchases earn you 1 point per $1 spent. This card also doesnt charge a foreign transaction feeits one of the very few Canadian cards to offer this perk. Consider it a 2.5% bonus on all foreign currency transactions, including online purchases.
- Annual fee: $120
- Welcome offer: You can earn up to 40,000 Scene and travel points by spending $1,000 in everyday purchases in the first 3 months. You can also earn an additional 20,000 points when you spend $7,500 in everyday purchases in your first year. Apply by January 1 2022.
- Earn rate: 5 points per $1 spent on groceries, dining and entertainment 3 points per $1 on gas, public transit and eligible streaming services and 1 point per $1 on all other purchases
- Income requirement: $12,000
Best Credit Cards For Beginners In India
there is something about owning a credit card that makes you feel grown-up. you may have seen your parents use it and would have been longing to get one with your name on it. now that you have a job, it is time to make your long-standing wish come true and get yourself the best credit card in India. many of you might have queries regarding credit cards, like, which are the best credit cards, how do i apply for a credit card, how to improve my credit score after i start using my credit card?today, we will address the first question. there are so many credit cards in the market, and each of them claims to be the best. how do you identify one that truly works for you and meets your requirements as a new credit cardholder?
Pay Off Purchases Over Time Without Interest
If you have one or more expenses that will take you some time to pay back, 0% intro APR credit cards are just what you need. These cards offer a 0% intro APR on purchases.
If you’re wondering how to choose a credit card with a 0% intro APR, look at the length of the introductory APR period. It can last for a year or longer, depending on the card you get. Once it ends, the APR will increase, so you should aim to pay off your full balance by then.
Read Also: Cabelas Interest Rate
Why Building Credit Is Important
We live in a world where have a huge impact on your financial life. Your credit report and credit score are what lenders look at when deciding to approve you for credit.
This includes mortgages, small business loans, car loans, credit cards, and possibly apartment rentals. The better your score, the more likely you are to be approved and the better your interest rates on accounts.
Related: 6 things to do to improve your credit
How Many Credit Cards Does The Average American Have
According to the 2017 Experian State of Credit report, the average American has 3.1 credit cards.
Its important to understand that because 3.1 credit cards is considered an average, it doesnt mean it should be the benchmark for you. There are plenty of other factors to consider .
But, since youre probably wondering how you stack rank against others , Experian was courteous enough to give us this description:
heres a picture of an average U.S. consumer today lets call her Jane Smith. Jane holds 3.1 credit cards and has an average balance of $6,354. She also holds 2.5 retail credit cards with an additional $1,841 in balances. Her mortgage balance is $201,811, and her other debt mostly car loan debt totals $24,706. Her credit score is 675.
The part I find most fascinating about this is that, according to Experians data, Americans tend to fill their wallets up with retail credit cards over traditional credit cards .
It makes sense, though. Retail cards are easier to come by and easier to get, but the big thing you need to be thinking about is how opening these credit cards impacts your credit score.
Don’t Miss: Why Is My Vanilla Visa Being Declined
Citi Secured Mastercard: Best Credit
Why we picked it: Your security deposit is refundable if you upgrade to an unsecured card within the first 18 months.
Pros: Theres no annual fee and you can choose your credit limit based on what you can afford to provide as a security deposit. You can put down as little as $200 to start and earn your deposit back by demonstrating the right habits.
Cons: This card offers no rewards. If thats important to you, there are secured cards that do offer rewards programs.
Who should apply? For someone rebuilding their credit, this card charges no annual fee and offers the opportunity to graduate to an unsecured card after 18 months of responsible use.
Read our Citi® Secured Mastercard® review.
World Of Hyatt Credit Card: Best Hotel Travel Card
Why its great in one sentence: The World of Hyatt Credit Card features a solid set of bonus categories and earns points in the most valuable hotel loyalty program around while at the same time offering complimentary Hyatt Discoverist elite status and the ability to earn even higher levels of elite status even if you cant travel at the moment.
This card is right for: People who routinely stay at Hyatt hotels under normal travel conditions, especially those chasing Hyatt elite status.
Highlights:
- Earn 4 points for every dollar you spend at Hyatt hotels.
- Earn 2 points per dollar on dining and on airlines tickets purchased directly from the airlines.
- Earn 2 points per dollar on local transit and commuting, and on fitness club and gym memberships.
- Earn 1 point per dollar on all other purchases.
- Complimentary World of Hyatt Discoverist elite status and 5 qualifying night credits every year.
- Receive 2 qualifying night credits per $5,000 spent.
- Receive 1 free night at any Category 1-4 Hyatt each year after your first card holder anniversary.
- No foreign transaction fees.
- $95 annual fee.
Sign-up bonus: Earn up to 60,000 bonus points 30,000 bonus points after you spend $3,000 on purchases in the first three months after opening the account, plus 2 bonus points for every dollar you spend on purchases that earn 1 bonus point, up to $15,000 in the first six months after opening the account.
Also Check: Chase How To Close Credit Card
Work Out How Much You Can Pay Off Each Month
Knowing this will help you choose the best-value credit card.
If you can pay the full balance each month
Consider a credit card with more interest-free days. This means you won’t pay interest as long as you pay the balance within a set number of days . These cards may have a higher interest rate and an annual fee, but that could be worth it.
If you can’t pay the full balance each month
Look for a no-frills card with a low or no-interest rate and a low annual or flat monthly fee.
Work out how much you would need to pay each month.
Making The Most Of Your Starter Credit Card
With a starter card, your goal should be to hit or exceed the 690 credit score target necessary to establish good credit. Here’s what you can do to work toward that:
-
Pay on time and in full every month to avoid interest .
-
Aim to use less than 30% of your available credit limit at all times. The lower your balance, the better.
-
Keep the account open and active.
-
Check your statement for mistakes.
-
Monitor your credit score through your issuers app.
-
Get your free annual credit report.
You can track your credit score for free through NerdWallet, certain banks and other third-party apps.
All information about the American Express Cash Magnet® Card has been collected independently by NerdWallet. The American Express Cash Magnet® Card is no longer available through NerdWallet.
Recommended Reading: Prequalify For Sears Credit Card
Full List Of Editorial Picks: Best Starter Cards For No Credit
» SECURED CREDIT CARDS
Secured credit cards can be a good option for those with no credit who want a starter card from a major issuer. These cards require an upfront refundable deposit, usually equal to the card’s limit. That cash collateral is returned to you if the card is upgraded to an unsecured account or closed in good standing.
Yes Prosperity Edge Credit Card
This YES Prosperity Edge Credit Card allows you to earn while you spend and you can enjoy rounds at select golf courses in India.
Benefits of YES Prosperity Edge Credit Card
- You get 15,000 as bonus reward points when your spends reach Rs.6 lakh or more in every anniversary year
- Earn 4 reward points for every Rs.200 that you spend in all categories other than Select categories .
- Get 2 reward points for every Rs.200 you spend on select categories .
- Get 4 complimentary rounds per calendar year at select Golf courses in the country.
- You enjoy one complimentary golf lesson every calendar month at select golf courses.
Don’t Miss: Best Buy Credit Card Payment Citi
Pay Off Your Credit Card In Full Each Month
The first rule of using any credit card is to always pay it off in full and on time every single month. If you follow this one rule, you’ll be OK.
“I often advise people to start by using the card and immediately going on the app and paying the balance of what they just purchased,” said Unverzagt. “That way they know they have ‘money in the bank’ to pay it.”
If you get comfortable with carrying a balance from month to month, you risk establishing bad financial habits. This could come back to bite you in the future, especially once your credit limit increases after you get your first job after graduation. This is how people end up in debt.
You can still get all the benefits of using credit cards rewards, consumer protections, and building credit without carrying a balance.
% Intro Apr Credit Cards
When it comes to how to choose a credit card with a 0% intro APR, pay attention to how long the 0% intro APR lasts. The intro period should be long enough to pay off the purchases you’ll make. If you’re not sure how long you need, look for the longest 0% intro APR you can find.
If multiple 0% intro APR cards fit your needs, use sign-up bonuses and rewards as tiebreakers to decide which credit card is best.
Also Check: How To Pay Best Buy Credit Card
How To Build Your Credit With No Or Little Credit
Building credit can take some time, but there are steps you can take to jumpstart the process. Here are just a few of them.
Weigh Up The Pros And Cons Of Card Options
Store cards
Store cards can be an expensive way to shop. You can only use them in that store, and they may have higher interest rates. Check if the benefits are worth the higher rate.
If a store offers an interest-free deal, check when the deal ends. Also check the interest rate on new purchases , as it may be higher than for other credit cards.
Rewards programs
But cards with rewards programs often have higher interest rates and extra fees. They could cost you more than you get back. Check if the benefits you get are worth the higher cost.
Extras like travel insurance
Some credit cards come with ‘complimentary’ extras like travel insurance for overseas trips. Be aware that extras are usually not free. The cost may be covered by higher interest or fees.
Other cards offer ‘cash back’ or discounts on goods or services. Weigh up if what you will get back is worth you paying more in interest or fees.
Consider the pros and cons of transferring your credit card balance to make sure it’s the right move for you.
Don’t Miss: Best Buy Credit Card What Bank
Who Should Get A Starter Credit Card
- The student. Consumers looking for no annual fees and potentially more forgiving terms on common penalties may want to look at a student card. With benefits tailored to college and graduate students, these cards can carry A+ value.
- The credit-builder. Secured cards require you to put down a deposit to become a cardholder, making them much easier to qualify for than traditional, unsecured cards. For this reason, secured cards are great for consumers who are just beginning their credit journey as well as those who are determined to improve bad credit.
Who Can See And Use Your Credit Report
Those allowed to see your credit report include:
- banks, credit unions and other financial institutions
- offer you a promotion
- offer you a credit increase
A lender or other organization may ask to check your credit or pull your report”. When they do so, they are asking to access your credit report at the credit bureau. This results in an inquiry in your credit report.
Lenders may be concerned if there are too many credit checks, or inquiries in your credit report.
It can seem like you’re:
- urgently seeking credit
- trying to live beyond your means
Recommended Reading: Best Buy Credit Card Financing
Hdfc Freedom Credit Card
- Enjoy 5X reward points on everything from grocery, dining, movie, railway, and taxi bookings.
- Get 25X reward points on spends made on your birthday.
- Avail 10X reward points on your SmartBUY and PayZapp purchases.
- Get a gift voucher worth Rs.1,000 when you spend Rs.90,000 in a year.
- Spend Rs.50,000+ in a year and get your renewal fee waived off.
- Enjoy an interest-free period of up to 50 days.
- Get 500 reward points as your welcome benefit.
- Get renewal bonus of 500 points when you pay your renewal fee.
Stay Under 30% Of Your Total Credit Limit
One way to keep your credit score healthy is to keep your credit utilization ratio under 30%. This credit utilization ratio is the percentage of total available credit that youre using. For example, if your limit is $1,000 you should keep your balance under $300. But the ratio applies to the sum of all your cards so if one credit card has a $3,000 limit with a $3,000 balance and a second card has a limit of $7,000 with no balance, youre right at the 30% mark which is where you want to be.
Recommended Reading: Cabela’s Club Silver Card
Blue Cash Everyday Card From American Express
Our pick for: No-deposit starter card foreign credit histories
The Blue Cash Everyday® Card from American Express pays elevated rewards at U.S. supermarkets, U.S. gas stations and select U.S. department stores. The rewards aren’t as rich as on the Blue Cash Preferred® Card from American Express, but this card doesn’t charge an annual fee. New cardholders get a decent bonus offer and an introductory 0% APR period. If you’re buying groceries regularly but not necessarily all the time, it’s worth a look. Read our review.
» BUSINESS CREDIT CARD
How Quickly Can I Raise My Credit Score
How quickly you’ll raise your credit score depends on a whole host of factors including whether you have any credit history at all, whether you have negative marks on your credit report, and the way you handle credit in the short term.
Read more: I raised my credit score by 134 points in less than a year thanks to 7 steps
Your best bet is signing up for a credit card that can aid you in building credit, then using it for regular purchases that you pay in full each month. This will help you build a history of on-time payments while keeping your credit utilization low.
Also Check: My Best Buy Visa Credit Card Login
How A Credit Score Is Calculated
Its impossible to know exactly how much your credit score will change based on the actions you take. Credit bureaus and lenders dont share the actual formulas they use to calculate credit scores.
Factors that may affect your credit score include:
- how long youve had credit
- how long each credit has been in your report
- if you carry a balance on your credit cards
- if you regularly miss payments
- the amount of your outstanding debts
- being close to, at or above your credit limit
- the number of recent credit applications
- the type of credit youre using
- if your debts have been sent to a collection agency
- any record of insolvency or bankruptcy
Lenders set their own guidelines on the minimum credit score you need for them to lend you money.
If you have a good credit score, you may be able to negotiate lower interest rates. However, when you order your credit score, it may be different from the score produced for a lender. This is because a lender may give more weight to certain information when calculating your credit score.