Getting a Credit Card


Active Member
Jun 19, 2010
i have been tempted to get a HdFC Credit card for a simple reason which are the cashbacks and schemes available with this both online and offline.Since i haven't bought anything on credit or ever taken a loan , wanted to run this by people who have been using it regularly . Since this isgoing to be my first card , which one should it be and any suggestion or advice
I hardly use my credit card after the advent of UPI. I wish had never taken it. If UPI is not working for some reason I use my debit card.

My sincere advice is to not go for it unless there's a really pressing reason. And definitely not from HDFC.
A credit card is useful in certain situations like giving a guarantee for hotel bookings etc. Many credit cards also come with good cashbacks etc. A free for life CC id worth it.

The only thing to NEVER do is to pay less than 100%.
Well there are always two sides of a debate. If you can manage the credit cards properly there are good benefits from the cards in form of loyalty points and offers from time to time. Further with flipkart and amazon launching co branded cards you do end up saving quite a lot. Further never spend on credit first you need to have the amount you are seeking to spend in your bank account.

Keep only one principle always make the payment in full 3 days before the due date. You will be greatly benefitted.
Stay away. But if you really need one for emergency, go for the card that don't have any annual or hidden fee.
1-> only lifetime FREE CC (no way I am paying a penny)

2-> don't use CC if there is no direct benefit at the time of the transaction (rewards are s**t anyway, few exceptions are there like Amazon ICICI, direct credit at the end of the bill cycle to Amazon Pay account)

3-> transfer the amount to the card, as soon as you make a purchase

4-> setup autopay, FULL bill amount.

it is unwise to loose on the discounts, just because some one hates credit card, for one I too don't think owning a CC is a good thing.

I usually follow all the above except missing point 2 many a times(too lazy to login to do it) .
Obviously, it is better to stay away from credit cards. But sometimes it becomes useful, specially in emergency. Enquire about the charges first. Some banks do not charge any fees on domestic credit cards.
International credit card plays a definite role in overseas payment, specially transactions with international e-commerce sites. Domestic debit cards cannot be used for international payments.
I am an exception to most of the above posts for sure.

I have 3 credit cards. Two free, one with annual fee of 5000/- (I can hear FM's forehead slaps)

I don't use the two free cards. I use the paid one regularly. I make it a point to not go over 40% of the credit limit and pay the dues in full each month. (Both have a positive effect your credit rating)

The benefits / rewards I get from the card is much more than the annual fee I pay for the card.

So, get a card by all means but only if you can stick to the above conditions.
i have been tempted to get a HdFC Credit card for a simple reason which are the cashbacks and schemes available with this both online and offline.Since i haven't bought anything on credit or ever taken a loan , wanted to run this by people who have been using it regularly . Since this isgoing to be my first card , which one should it be and any suggestion or advice
There are plenty of ways to successfully use a credit card.

I have 2 highest rated cards from different banks and use them a lot. But remember.... never ever roll your credit. Always pay full amount. Basically you use the card to defer a payment that you can already afford to pay for. And pick up points in the process.

Free cards offer no great value beyond being an emergency fund. Use cards with subscription fees, but only when you are going to spend the minimum amount to get a fees waiver. If you are not fulfilling these criteria, then don't go for it.

So what is the gain? Obviously it can act as emergency fund.

Secondly, since all expenses are documented, you can spend your tax deductible expenses on card and easily track them when you claim tax benefits during filing returns, without having to preserve the receipts. This is of no benefit to salaried employees.

Thirdly, you can use the free points. This is the main thing.

Fourthly, small benefits like international airport lounge access and club memberships etc.

Fifth.. it improves your credit rating.

HDFC top card Infinia has the best rewards program. You can use it for free hotel stay and flight tickets and save a lot of money. But poor service from HDFC will drive you mad. Only reason I put up with their crap is because of the HUGE benefits I have got from them.

Do your analysis. But don't rush in and get trapped.

If UPI is not working for some reason I use my debit card.
For security reasons one should avoid use of debit cards either online or at merchant outlets, as it gives the scammers a direct access to your bank account.
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I have been a credit card user from past 21 years and I defaulted only once, that too because I made one digit error while making payment. Instead of 22xxx, I paid 21xxx and had to pay charges. Leaving that incident, I never had issues with any CC.
I maintain two credit card all the time and make sure that I pay up 100% of dues every month.
I don't pay or haven't paid any annual fees to any card so far. HDFC Regalia First and Amex Gold are my current cards and I have got good benefits by using those cards.
Thinking of getting Amazon ICICI credit card as I do most of the shopping on Amazon now a days.

You get some savings by using credit cards. Few points to keep on mind.
Never stretch your budget just because you have a credit card
Never buy anything impulsively because you can get it using credit card
Don't fall for EMI purchases any time. There are processing charges, interest charges, GST on that even if they claim interest free EMIs
Set up auto pay as suggested already

Having a credit card improves your Credit score and that is important as well.
I have a very capitalistic answer.

Why use my money when I can use bank's money without interest.

I have been using CC since last 20 years. Never paid any interest or penalty as my spending were things I had to buy not things I wanted to buy.

People starts to consider the CC limit as their own money and problem starts.

If you keep in mind that you are going to have to pay an accumulated amount after some time you'd never overspend. Works for me. I have set autodebit and am living in peace.

Reward points can be encashed and I have done so multiple times. Got vouchers for groceries, clothing, food joints and e-commerce sites.
Credit Cards can be a real boon if you can use it wisely and control urges for impulsive shopping, Some HDFC cards gives you 10X points (DCB, Inifina) that is a saving of 33% and you can redeem those points for free flights and Hotels, I am using those points for free flights and hotels for me and my family since last 5 years.
I have been using a Citicard with an annual fee of Rs 1000 for last 25 years. I make most of the payments through it. The benefits are :
* I get Rs 4 - 5000 in points normally , enough to pay mobile bill for the whole year.
* It is safer than net banking or debit cards, as the damage in case of a fraud will be limited to the card's credit limit and your bank account is not exposed.
* A must, if you travel abroad. Net banking and normal debit cards do not work.
If you use the credit card judiciously, there is absolutely no harm. It is better than exposing your bank account or using your debit card. The money lost due to a fraud will be limited to the credit card limit. If the amount lost is not due to your fault & the transaction has been done without your knowledge then the onus is on the bank. I have been using an HDFC credit card for years & so far no issues.
Besides other advantages are that you get points on your card which you can use for various purposes. My air ticket got fully covered without me paying anything. Other advantage is that on certain purchases , you get cash back on your card & I recently got Rs. 6,200/- odd offer back on my credit card after 90 days for a TV purchase. You also get interest free emi options for payment on white goods. I am not familiar with paytm or UPI so cannot talk about those.

My main purpose for a credit card was for hospitalisation for any family member or me for which I have made use in the past. In an emergency when cheque payment is not acceptable , a card is very useful. With a credit card one needs to know the limits & not spend irresponsibly as in the end nothing is for free & you only have to pay for what you spend besides the interest for late payment is quite heavy. Keep you credit limit at an acceptable amount you find useful & don't let the bank staff talk you into increasing your credit limit as it is for their obvious benefit.
Credit card as a means for shopping and spending money which you would've otherwise spent using your cash or debit card is absolutely welcome.

This is much safer compared to using debit card/online transaction using your bank account. Apart from convenience - reward points are only bonus. I've had free fuel on Citi Card, 7K cash back twice on Amex and so on.

And finally all my transactions happen on my credit cards every month right from grocery to online shopping. Pay it up on the 1st of every month if you don't want the hassle of remembering the pay by date.
It is better than exposing your bank account or using your debit card.
I use Virtual keyboard while using Netbanking or Debit Card, and am curious about how you are safe using CC. Can anyone explain a bit in more detail? So far, I have stayed away.
Whether a Credit card is something desirable or not, depends on the end-user. I have had several bad experiences. But I have heard several people raving about them. IME, the primary factors a CC is useful can be summed in a few points.

(1) The issuer - Most Indian CC issuers indulge in unfair/unethical practices. This is not the case in developed economies where the banking sector is better regulated.

(2) Usage pattern - Most CCs are designed for certain purpose. If you use a CC whose design goal aligns well with your usage patter it will be a good experience. But if not, a debit card is a better replacement.

(3) Repayment pattern - If you are a disciplined user that religiously follows the expected repayment regime, it's likely to be a good tool. But if you miscue, a CC is often a disaster in waiting.

(4) CCs often give cashbacks/other rewards. But why would someone give you cashbacks/rewards for paying via their card?

The answer is - they expect the users to splurge/over-spend. And then they anticipate users to default. That is the business model of credit cards. The interest rates on most CCs are obscene.

My personal take is - to use a DCs (Debit Cards).

Most DCs these days come with same/similar rewards as their CC equivalent. I do not find it risky because it exposes your bank account directly. I set a daily spend limit high enough to meet my usage patters, and low enough to not allow a scammer to dent my linked account heavily (in case of a mishap). I also disable international transactions on my CCs/DCs until I actually need them. This protects me from international frauds. I also make sure that I have notifications always on on my bank account email/phone on which I receive SMSs. These methods put together add a good layer of protection.

There are other good-practices linked to how to use a CC/DC properly, such as never hand-out your card to anyone and leave it unattended. Always allow your card to be used only in your presence. Most of these instructions apply equally on both DC and CC.

Scammers are always devising novel methods to scam people. CCs and DCs are equally vulnerable. Pay attention to the emails that sensitize you about scams. That allows you to stay abreast of new methods being used by scammers.

Lastly, if you do get scammed/defrauded the recovery process is nearly same in either cases.

IME, the bottom line is - if you are a disciplined spender who doesn't get taken by offers, who doesn't succumb to greed, who doesn't over-spend just because it can be purchased on credit, who has a good memory and doesn't miss a payment - it's a good instrument to have. Else, it's avoidable.
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