EDITORIAL PICKS - BEST TRAVEL CREDIT CARDS Citi Prestige Credit Card Credithita picked for
: Total rewards earned in the first year and you can double what you pay as a joining fee.
Citi Prestige credit card has a joining fee of ₹20,000 + GST and a renewal fee of ₹20,000 + GST from second year onwards. With Citi
Prestige credit card you almost double what you pay as a joining fee with great benefits worth ₹38,000+ in the first year. Citi Prestige
credit card is a very good travel card with joining bonus miles worth ₹4,500 and free vouchers of ₹10,000 for Taj Group/ ITC Hotels.
On annual spends of ₹24 Lacs, you get a burn rate of 1 rupee per point which equates to a cashback worth of ₹24,000. Based on your
relationship with Citibank, you can get up to 50% bonus reward points every month and there is no expiry on earned reward points.
You can convert your reward points to Airmiles with any frequent flyer partners at the rate of 1 point = 4 miles. Get free unlimited
priority pass lounge access to over 800 airports, worldwide. This benefit applies to primary and supplementary credit cardholders.
Citi Prestige credit card has a reward rate of 1 reward point per ₹100 spent on domestic and 2 reward points per ₹100 spent on
Citi PremierMiles Credit Card Credithita picked for
: First year benefits
Citi PremierMiles credit card has a joining fee of ₹3,000 + GST and a renewal fee of ₹3,000 + GST from second year onwards. With Citi
PremierMiles credit card you get almost 6.5 times upto ₹19,000+ worth of benefits in the first year on what you pay as a joining fee.
Citi PremierMiles credit card is a very good travel card with joining bonus miles worth ₹4,500. You get 10,000 Miles within 60 days on
your first spend of ₹1,000 and 3,000 Miles on every card renewal matching the renewal fees. Cashback value per mile/point is 0.45 paise
rounded down to nearest fifty. You get complimentary domestic airport lounge access. Citi PremierMiles credit card has a reward rate of
10 Miles per ₹100 spent on airline spends at www.premiermiles.co.in and 4 Miles point per ₹100 spent on all others.
HDFC Diners ClubMiles Credit Card Credithita picked for
: Lesser annual fees
HDFC Diners ClubMiles has a joining fee of ₹1,000 + GST and a renewal fee of ₹1,000 + GST from the second year onwards. The renewal fee
is waived off if you spend more than ₹1,00,000 in the previous year. You get the welcome benefit of 1000 Reward Points. HDFC Diners
ClubMiles credit card provides several rewards such as earn 4 reward points on every ₹150 spent and burn rate of 1 Reward Point =
1 Air Mile or 1 Reward Point = 0.50 Paise. Get Up to 6 Complimentary access to 700+ Lounges Worldwide in a calendar year. Embark on
a delectable journey where you can enjoy a 15% discount. Air accident cover of INR 1 Crore. Emergency Medical Expenses Cover of up to
INR 25 Lakh. Credit Liability Cover of up to INR 9 Lakh.
MakeMyTrip ICICI Bank Signature Credit Card Credithita picked for
: No renewal fees
MakeMyTrip ICICI Bank Signature credit card has a joining fee of ₹2,500 and a renewal fee of ₹0 from the second year onwards. You get
the Welcomed gift worth ₹2,500 Lemon Tree Hotels voucher and ₹1,500 Mycash plus MMTDOUBLEBLACK and MMTBLACK enrolment. MakeMyTrip
ICICI Bank Signature Credit Card has a reward rate of ₹2 Mycash per ₹200 spent on flight bookings on MakeMyTrip and ₹4 Mycash per
₹200 spent on holiday bookings on MakeMyTrip. Spend ₹5 lakh and earn extra ₹4,000 Mycash on the anniversary. You get 2 complimentary
movie tickets every month under the Buy One Get One Free offer. Get every sixth ride complimentary with Ola and a complimentary
Airtel international roaming pack. Enjoy complimentary international and domestic airport lounge access and domestic railway
Standard Chartered Emirates World Credit Card Credithita picked for
: Lesser annual fees
Standard Chartered Emirates World credit card has a joining fee of ₹3,000 and a renewal fee of ₹3,000 from the second year onwards.
You get the 4,000 bonus miles as a welcome benefit. Standard Chartered Emirates World credit card has a reward rate of 6 Skyward miles
per ₹150 spent on Emirates transactions and 3 Skyward miles point per ₹150 spent on all others. Get 5% cashback on duty-free shopping,
up to a maximum of ₹1,000 per month. Get complimentary lounge access to 25+ domestic lounges through the Mastercard Lounge program and
2 complimentary accesses to Domestic and International Priority Pass lounges per month. Protect yourself with complimentary overseas
air accident coverage of INR 1 Crore including insurance on the loss of baggage and flight delays. Get access to three complimentary
golf games a year, one free lesson a month and 50% discount on all games.
Standard Chartered Yatra Platinum Credit Card Credithita picked for
: Lesser annual fees
Standard Chartered Yatra Platinum credit card has a joining fee of ₹499 and a renewal fee of ₹499 from the second year onwards.
You get a welcome gift worth of ₹4,000. Standard Chartered Yatra Platinum credit card has a reward rate of 4 reward points per
₹100 spent on Yatra.com and 2 reward points per ₹100 spent on all others except fuel. Earn 10% cashback on travel bookings made
through yatra.com. If you change your travel plans get waivers on Yatra cancellation fees for all tickets booked on yatra.com.
Earn fuel surcharge waiver of 1% on all fuel expenditures. Enjoy a host of discounts and offers across dining, shopping, travel
and more with the Standard Chartered Good Life programme.
Axis Bank Miles and More Select Credit Card Credithita picked for
: Welcome Benefit
Axis Bank Miles and More Select credit card has a joining fee of ₹10,000 and a renewal fee of ₹4,500 from the second year onwards.
Welcome bonus of 15,000 award miles and second year after renewal fee you will get annual bonus 4,000 award miles. Axis Bank Miles
and More Select credit card has a reward rate of 6 miles per ₹200 spent and 20 miles per ₹200 spent on Movie Bookings. You get 4
Priority Pass lounge visits per year. With the Priority Pass lounge access facility, you can enjoy complimentary access to more
than 600 airport lounges around the world. Priority Pass will be issued to you automatically on activation of your credit card.
You can avail a minimum discount of 15% at partner restaurants through the ‘Dining Delights’ program. Avail fuel surcharge refund
of 1% when your fuel transactions range between ₹400 and ₹4,000. This is applicable to all the petrol stations across India. For
any purchase of over ₹2,500, you get the option of converting it to EMI which you can easily off in monthly instalments.
Axis Bank Magnus Credit Card Credithita picked for
: Complimentary benefits
Axis Bank Magnus credit card has a joining fee of ₹10,000 + GST and the renewal fee of ₹10,000 + GST and is waived off if you spend
more than ₹15,00,000 in the previous year. You get 12 Axis EDGE REWARDS Points for every ₹200 spent. Double points on purchases at
MakeMyTrip, Yatra, and Goibibo. Every year you get a complimentary one-way flight ticket worth up to ₹10,000 to your favourite
domestic location. You can get up to 25% discount at 600+(5-star dining) fine dine restaurants across India. On BookMyShow you get
up to ₹500 off on the second ticket for a maximum of 5 in a month. Avail up to 8 complimentary international lounge accesses per year
with the Priority Pass card and unlimited domestic lounge access in India. 8 complimentary end-to-end VIP services at the airport.
Credit shield of ₹5 Lakhs and Air accident cover ₹4.5 Crore.
HSBC Visa Platinum Credit Card Credithita picked for
: No annual fees
HSBC Visa Platinum credit card gives 6 points for every ₹150 when you spend on hotel stays. One unique benefit this card offers is
every new cardholder gets a 10% cashback for the first 90 days. In addition to being a very good travel card, HSBC Visa Platinum credit
card offers a BookMyShow voucher worth ₹500 on spending over ₹50,000 in a calendar month. The accumulated reward points on this travel
card can be redeemed as Singapore Airlines Air Miles using which you can buy your future tickets or upgrade your travel class.
TRAVEL CREDIT CARDS
Travel credit cards reward you with points while you spend on daily needs as well as on travel-related spending like flight booking.
The travel credit cards will give rewards as cashback points or Air Miles. You can either redeem your cashback points as gift cards
or redeem Air Miles on your future travel needs.
Travel reward cards can give you excellent returns if you are a frequent traveler and understand the redemption
options available and plan according to your needs. Say rather than redeeming as gift cards or encashing as statement
credit you can get great value if you use them for your planned travel-related bookings. Instead if you are looking for
a return on your spending in terms of encashing as cash then cashback credit cards work best for you.
HOW TO REDEEM TRAVEL POINTS? Air Miles:
one of the best values for money is converting travel points to Air Miles. Issuers through travel partnerships provide
great value to their credit card customers, where the customers can redeem their Air Miles for flight bookings or upgrade
Redeem as Gift Card:
Another option is you can redeem your Travel points as gift cards, log on to your credit card account and choose to
redeem as gift cards for your favorite brand.
TRAVEL CARD BENEFITS Complimentary Lounge Access:
A lot of travel cards provide lounge access as a complementary benefit. For example HDFC Diners Club Miles provides up to 6
complimentary accesses to 700+ Lounges Worldwide in a calendar year.
Some travel cards provide air insurance. For example,
Standard Chartered Emirates World Credit Card
provides complimentary overseas air accident coverage of INR 1 Crore including insurance on the loss of baggage and flight delay.
HOW TO COMPARE TRAVEL CREDIT CARDS
Travel credit cards charge an annual fee of ₹0 to ₹10,000. The question is - “Is it worth paying an annual fee to avail travel
benefits offered by travel credit cards?” Paying an annual fee is worth it if you find the right credit card that offers you
the maximum benefits. By paying annual fees allows you to unlock certain valuable perks, such as access to numerous airport
lounges or free checked bags.
Are there travel cards that offer decent benefits without an annual fee? Absolutely! There are no-fee travel cards and one
such best card is HSBC Visa Platinum Credit Card.
The rewards that a travel card offers can be evaluated using “Reward Rate”. A reward rate can be understood in terms of
"earn rate" and "burn rate".
The earn rate
is how many points or miles you receive per rupee you spent. Some travel cards offer flat-rate rewards,
meaning you get the same rate on all kinds of purchases, like 5 points per ₹100 spent, and some cards pay higher points
through a partner, such as airline tickets, hotel stays.
The burn rate
is the value you get for the accumulated points or miles when you redeem them. The industry average is
about ₹1 for each mile. Some cards provide a lower value per point when you redeem while offering a higher reward point
per rupee spent.
So you shouldn’t just consider choosing a card just based on “earn rate” or “burn rate”. You need to pay attention to both
rates and choose the one that maximizes your benefit.
To attract customers a lot of credit card issuers provide a very good welcome and signup bonuses, you get additional
points/miles when you spend a certain amount of money in your first few months using the card. In most cases the value of
the signup bonus perks will match the joining fee.
Foreign Transaction Fees
The reason you are looking at a travel card is that you are a frequent traveler. So it is advisable to pay attention to
foreign transaction fees if you plan to use your INR card while you travel outside India. Most travel credit cards charge
a fee of up to 3% on every transaction made outside India.
While Visa and Mastercard are accepted pretty much worldwide, you may encounter limited acceptance for American Express
and Rupay. Make sure you update your travel plans with your Issuer by calling their customer care or logging into your
account before your travel so that your transactions are not denied by the Issuer suspecting these are fraudulent transactions.
Perks Airport Benefits:
Lounge access.Free checked bags. Priority boarding pass. Elite status.
Discount at fine-dine restaurants. Free nights. Automatic room upgrades. Early check-in/late check.
Free amenities. Elite status.
Travel Insurance. Air Accident Insurance. Discount on flight bookings. Free economy class tickets.
Free Business class tickets. Elite status.
WHAT AFFECTS YOUR CREDIT SCORE?
Credit score is a three-digit number that is assigned by credit bureaus based on factors that define your credit profile.
In the modern economy Credit Score rules, everyone’s life as more and more information systems are being linked to track your
credit transactions. While you probably have a general idea of what credit score means and what your credit score is, it is also
extremely important to know and understand what affects your credit score. So that there is no surprises when the next time you apply
for a new credit card or loan. Below are the main factors that affect your score.
What factors impact your credit score and How?
|Payment history ||Very High|
|Age of credit ||High|
|Credit utilization ||High|
|Negative marks ||Medium|
|Available credit ||Very Low|
|Credit inquiries ||Very Low|
What is the Payment History?
How timely and consistently you are paying your credit card bills. It is also calculated as a percentage with a simple formula
on-time payments/total no. of payments
. It has a very high impact
on your credit score and lenders will look at
the payment history to calculate the lending risk. The more you pay on time, more likely increases your score and gains lender
trust for your future loans.
What is the Age of Credit?
Age of credit denotes how long you have been maintaining your creditworthiness. To calculate the age of credit, find your oldest
active account and see when it was opened and calculate how many years old that account is and that becomes your age of credit.
To have a higher age of credit, one tip is don’t close your oldest account and it will help you with your credit score. Age of
credit factor has a high impact
on your credit score.
What is credit utilization?
Credit utilization is nothing but your overall spending percentage. It has a high impact on your credit score. You should always
target to keep it below 30%. For example, you have 3 credit cards with a limit of 10,000, 25,000, 25,000 and you spent 10,000 overall.
Your utilization will be 10,000/ 60,000 * 100 = 16%
What are the negative marks?
Any accounts that are delinquent or derogatory has a very negative impact on your credit report. Delinquent accounts are past dues and
derogatory accounts are more serious marks against them such as bankruptcy (Insolvency Resolution Process “IP”) and foreclosure
(lender by forcing the sale of the asset used as the collateral for the loan). Lenders won't process your future applications if you
have any delinquent remarks on your credit report, so you should always avoid having any such remarks to have a good credit score.
What is Available Credit?
The total amount of credit that you have access. Available credit = Total credit - Used credit
. It has the highest impact
on your credit score. Let's say if you have two credit cards one with a credit limit of 10,000 and with a balance of 3,000 and another
one with a limit of 20,000 and a balance of 0 then your Total Credit = 30,000 (10,000 + 20,000) and Used Credit = 3,000 (3,000 + 0),
so your available credit is 27,000 (30,000 - 3,000) with a credit utilization of 10%.
What are Credit inquiries?
The number of hard inquiries (or “hard pulls”) on your report. Normally when you apply for a credit card or any type of loan, lenders
will pull your credit report to determine your creditworthiness and this is called a hard inquiry or hard pull. If you have multiple
hard inquiries then, lender will consider yours as a riskier profile.