These days everyone into e-commerce, Payments business & Cab aggregator are getting into the credit card industry to play the lending game. This has undoubtedly taking the reward rate of entry-level credits cards in India to a whole new level.
While the offerings are pretty good for an entry-level card, card holders are having tough times in choosing the right one, as the offers are almost similar. So here’s a quick guide in choosing the best of best credit cards from these big brands.
Table of Contents
Before we get into finding the best card, let’s have a quick look into the rewards & other essential factors while applying for a new credit card.
Reward Rate
Reward rate is probably the most important aspect of a credit card. Here are the cards with respective reward rates. Click on the links below for detailed information.
- Amazon Pay Card – Upto 5% on Amazon Spends, 2% with partners, 1% everywhere else.
- Flipkart Credit Card – 5% with flipkart brands, 4% with select partners, 1.5% everywhere else
- Paytm First Card – 1% universal cashback
- Ola Money Card – 7% return on cab spend, Upto 20% on travel spends, 1% everywhere else.
Multiple Cards
Every bank limits the # of credit cards you can have with them. This section doesn’t matter to you if you’re new to credit cards, but if you’re already hold a credit card from these banks, this might help.
- ICICI – ICICI don’t usually have any limits per se, as they beautifully share the same limit across all cards. ICICI easily allows to hold 2-3 cards per customer.
- Citi – 2 per customer
- SBI Card – 2 per customer
- Axis – 2-4 per customer (based on the profile)
Remember, these limits are decided in a such a way that the bank allows one bank owned card + one co-brand card. So if you ask whether you can hold 2 co-brand cards, well that varies with the issuer.
Ease Of Applying
This is a major factor as it decides the conversion of those who’re interested in getting one of them.
- Amazon Pay Card – As long as you’re eligible, its hardly 2 minute process, 48 hrs card delivery.
- Paytm First Card – Citi is usually the toughest to get through & the friction is still there.
- Ola Money Card – SBI should be easy too, yet no reports of applications being processed.
- Flipkart Card – Axis is easy too. Reports says if you’ve their Buzz card, Axis quickly converts it to this Flipkart card. Mass issuance expected by Sep 2019
That said, Amazon Pay ICICI card is by far the best when it comes to user experience in applying for the card. Amazon & ICICI has the BEST kind of integration for credit card issuance in India at the moment.
Okay so you now know all the details. If you’re still confused, its because you never know what you want!
I mean, while choosing a credit card, you need to have a goal, which could be: Cashback, Shopping benefit, Travel benefit. If you do-not have one, do set your mind for one and read below.
For Cashbacks
If all you need is just direct cashback to your Credit card statement, then you’ve to look at Flipkart card and Paytm card. A simple math would show that the Flipkart card is 50% more rewarding than Paytm First card.
So Flipkart Card Wins here.
But this generally doesn’t make much difference as Ola Money & Amazon Pay wallet has very good acceptance, good enough to treat them as real cash.
For Shopping
This totally depends on where you shop. I primarily prefer amazon over flipkart, so my choice would obviously be Amazon Pay card but remember that the Flipkart card is bit more rewarding on regular spends.
Ideally, if you’re a Flipkart User, then its better to get both cards as Amazon card anyway is not going to cost you anything.
Moreover, the Amazon card is super easy & fast to get, especially when you’ve existing relationship with ICICI. None of the competition has made issuance of a new card this faster.
For Travel
That obviously goes to the Ola Money SBI card as you get nice 7% returns on cab charges and also even greater savings for the spends done on Cleartrip.
Best Card for Beginners
One of the very common question that I get asked from my friends these days is…
Which is the best credit card for me? I spend about a lakh p.a. and I fly domestic once a year.
I think that’s also the question of every millennial starting his career and applying for his/her first Credit card.
So to answer that query with above cards in mind, the vote goes to the Flipkart Credit Card as it also comes with MasterCard’s airport lounge access benefit. This card infact is as good as a premium credit card if one doesn’t need international lounge benefit.
That said, you may also get the Amazon Pay Credit card any day as its anyway free.
Bottomline
So as always, there is no single credit card that fits everyone. As there are so many credit cards in the market these days, you first need to prioritise your needs/goals and then choose the cards accordingly.
Looking at the above card launches, it seems 2019 is a grand year for credit card industry. But hey, don’t forget about the big dad: HDFC Bank. They may come up with a new semi-premium credit card anytime soon targeting “millennials” of India !
Will the new HDFC Bank Credit Card eat the competition for lunch in 2019? We’ll know that shortly.
So which credit card are you planning to get from the above? Feel free to share your thoughts in the comments below.
Rightly said. Now its difficult for a beginner to choose the card.
I was blown away by the axis – flipkart card. 1.5% reward rate is very good for a beginner level card. Directly competing with YFE (default reward rate) . Right?
Yes & No, and you know why already! 🙂
Please explain.
Yes – For reward rate
No – YFE gives amazing Priority Pass benefit.
Really helpful review.
Out of topic information – I have got an offer from SBI to spend 12 times ( minimum Rs. 1,000 ) and get 0.50 grams of gold. Amazing offer 😲.
I think earning good reward points is important and redemption of points is equally important. Once we earn points from Flipkart we have to purchase goods which we might not need or we have to buy goods for others ( not easy ). From Amazon we can easily pay utilities bills for ourselves or others which is quite equal to cash. Hence Amazon ICICI credit card is a big winner for me and another advantage is that it’s free .
Flipkart Card is a direct cashback to stmt type. While Axis is not clear on that, the press releases says it’s a stmt credit, like Paytm card.
I highly doubt it’ll be statement credit. It would make a lot less sense for Flipkart and Paytm to have that credit card then in the first place. Flipkart recently also changed PlusCoins to SuperCoins where 1 Coin = Re. 1 on Flipkart.
It’s probably a miscommunication where instead of communicating that cashback will be credited (to Flipkart/Paytm) wallet on statement generation, they’re communicating cashback will be credited *to* statement.
No. It’s very well written in card document on axis website that customers to get direct cashback in tangible for.
It’s a game of axis and mastercard to grab market where flipkart is just 3rd partner on board. Handsdown its going to be the most value for money credit card for middle-class coming from a trusted bank like Axis which is more acceptable to general public.
The cashback in ‘Flipkrat Axis Bank Credit Card’ is credited directly into the card statement every month. This is real money getting credited into card account, thus sparing customers the hassle of tracking reward earn and redemption. This as per me is huge and pleasant departure from getting currency in a specific wallet, which then can be used only at specific partner outlets or sites.
Please add Fee comparison as well in above article. Thanks.
@Siddharth thanks again for writing a wonderful article.
I just want know your thoughts on the below two points.
1. At most of the time I also use to get the same question by my friends that which is the best card at the beginner level.
I use to suggest them SBI simply click if there spend is mostly online and Amazon/SBI partners as its gives overall ~3.25% if i include the milestones benefits @Rs500 p.a, but i always use to think as a beginner credit card user the person will be not going to dig out all the perks out of the card as that comes with experience and passion, but from today only if the flat 1.5% is going to adjust in the statement without any delay or thought i can suggest flipkart axis bank credit card @Rs. 500 p.a else overall the SBI simply click is still the best credit card for the beginners according to me as somehow we will be getting Amazon Icici Credit Card LTF.
2. Is it possible that currently or in future the AXIS bank will be issuing or will be upgrading the existing credit card which is LTF to Flipkart Axis Credit Card as an LTF credit card.
Regards,
Aryan Kohli
SBI SimplyClick is All-Rounder Card. If we compare it with this 4 co-branded Cards, it’s better. Though co-branded Card also have their own 2-3 better features.
# Amazon ICICI – LTF + 5%/3% cashback at Amazon & 2% at merchants.
# Ola SBI – ola cabs 7% cashback + Cleartrip
# Flipkart Axis – 1.5% Cashback + Lounge Access.
# Citi Paytm – Citi(name) & Paytm(fame) nothing better than Simply Click.
Probably the article mojority at beginner level were waiting for……Good comparision…….Its a fight between Flipkart and Amazon and as writely put forward there is no harm in going for both as 1 is free and the other gives you a lounge access and both are online marketplace giants…
Amazon card is super easy & fast to get for all Amazon users now. Flipkart Axis is approving Card instantly only for Axis Buzz Card Holders. For other users minimum 50K/month salary required. So, it’s not that much easy to get Axis Flipkart Card as of now. Axis Bank should give relaxation to grab fresh customers. Person having 50K salary already have better options available- Iconia Amex, Yes Bank Cards.
The 50k salary requirement is incorrect.
Secondly why you aspiring for iconia amex? Thats no longer the card it used to be
SUJIT KUMAR HOTA,
Yes you are right. Minimum Salary requirement is 25000/month.
And for ICONIA AMEX – only transactions at 4 specified categories are excluded from 1.5%/2% cashback, rest all same.
Which are the 4 categories Iconia…what about paytm wallet loading….has the reward system changed for this
Axis Flipkart integration is not one to one like ICICI-Amazon. Amazon customers get the card rewards linked to their login through Amazon Pay. Hence even if you spend on any other Amazon account the rewards are pulled only at one account although ICICI does not issue Add-Ons for Amazon card.
Flipkart does not have a wallet yet, but they could have utilized their PhonePe acquisition here to build a tighter integration for control on the rewards. Most probably the stumbling block there was the fact that PhonePe utilizes Yes Bank for UPI and there could have been binding terms on further partnerships leading to the decision of direct cashback credit.
Very well analyzed post Ankit . Kudos 🙂
Siddharth,
Do check latest comments in Ola SBI thread, 1 or 2 user got card.
Thanq
@ siddharth , Nice well written article , You missed out on the lounge access on flipkart card – 4 per calendar year .
Having a bad customer experience in applying for the amazon pay icici card (trying since JAN 2018) .
Looking to apply for the axis bank Flipkart card, executive says app not yet updated for the new card application process.
Hi Siddharth,
FYI, Axis allows upto 3 credit cards per customer.
Honestly, I’ll just wait and watch. Also HSBC have also silently released their own Cashback card that offers 1.5% cashback on on-line spends and 1% on offline. The welcome benefits are pretty cool that includes a 2000 cleartrip voucher, 250 swiggy voucher and 5% cashback on shopping at amazon.
Besides this I feel that Axis/Flipkart card is pretty good but I rarely shop in Flipkart or Myntra. I’m waiting for the Ola SBI Card though. The design looks really beautiful and premium.
You forgot to mention that Paytm offers complimentary Paytm First membership worth 650 Rs on approval of Paytm First card!!
Write an article on memberships. Paytm First, Amazon Prime, Zomato Gold, Dineout Plus, EzyDiner Plus, TimesInternet etc.
Regarding your point about the icici amazon pay credit card being the easiest amongst them all to apply and get approved, there should be a disclaimer that that’s the case if u r an existing icici bank user. I had no relationship with icici when i applied for the card on the 25th of june and today, on the 30th of july, 5 weeks later, am still fighting to get my docs picked up.
Not sure how the process is for the other cards, but surely it would be simpler and easier than this
Nice article. Please also include the annual/renewal fees (with waiver clauses)
What I could gather today
Amazon – LTF-Free
Flipkart card – Rs. 500, with an annual fee waiver on spends of Rs. 2 lakh
Ola SBI – No card fee for the 1st year. 2nd year card fee of ₹499 waived off on spends over ₹1L
PaytmFirst – Paytm First card comes with an annual fee of Rs.500 which is waived off when you spend Rs.50,000 or more in a membership year.
Some have welcome benefits too, but I have skipped that part
Every card compared in above post has its own benefits and limitations :
Amazon card is lifetime free and rewards are paid within 2 days of billing cycles. However, There is no add-on Card , no welcome benefits, No complementary lounge access, Available on Invite only basis, Additional benefits are provided to Amazon Prime Members
But in Flipkart Axis card we get welcome benefits worth Rs 3300, Complementary lounge access,No reward differentiation between flipkart Plus and Non-Plus members, Add-on Card facility is also provided. But, it will hit your pockets every year with Annual fees, also there is no clearity on how rewards will be paid. If is on Statment cashback than i will blindly go with Flipkart Axis bank Card.
What you all think ?
You didn’t mentioned the first time cashback we get when applying for these credit cards.
For e.g I got ₹750 as cashback in Amazon pay wallet for getting the card.
axis cart has 500 charges every year.. so there is no point to opt for beginner.
i think, amazon pay + ola sbi is good combination as everyone have some event when cab or fligh booking is required when user can get maximum benefit. and rest for the purchase, amazon card can win.
paytm 1st vs ola money.. i feel that, ola money is best as both card offer 1% cashback for all but ola offer much more on cab and flight… hence paytm 1st also doesn’t make sense to opt.
I unfortunately have all these 4 cards now, and so the confusion starts about which to be used more. Out of these 4 ola/sbi is least fav as the cashback has limited utility. Paytm , i think, i ll prefer first till i hit 50k mark(effective 2%cashback). After that flpk/axis till year-end. Amazonpay only when the portal opens into amazonpay website
Above these 4 i also have hdfc millennia debit card, but will use only very specifically as we will not know about cashback in the next 3 months