Planning to simplify your shopping? Credit cards can help! Check out the guide for the best credit cards for shopping in India.

Indian consumer behaviour is evolving at a rapid pace. Payment methods are matching this pace and by a growing inclination towards organised credit through tools like credit cards and facilities like ‘Buy Now Pay Later’. In the past five years, credit card users have almost doubled. Data by the Reserve Bank of India (RBI) suggests 10.8 crore credit card users in India as of December 2024.

There are numerous banks and non-banking financial companies (NBFCs) providing credit card facilities in India. Selecting the best credit card for shopping specifically can be difficult. However, following a strategic approach by focusing on some crucial factors can help in this selection.

This blog can be a go-to guide for individuals willing to analyse the top shopping credit cards and select the most suitable tool.

Using Credit Cards for Shopping

A credit card is a borrowing tool that allows its owners to purchase with an advance credit and repay this extended limit at the month’s end. These days, credit card issuing companies pay significant rewards for attracting borrowers. Apart from this, some of the key benefits of using credit cards for shopping are as follows:

• Automation can be set up for recurring payments.
• Large payments like flight booking or asset purchases can be easily processed with a credit card facility.
• Some credit cards also allow interest-free credit facilities for a specific tenure.
• A credit card with shopping rewards helps consumers earn significant discounts and cashback.

Despite these benefits, selecting and managing credit cards is a crucial task. Without proper management, this credit card facility can become a liability for the borrowers. Therefore, its management starts with selecting the best credit card.

5 Factors to Select the Best Credit Card for Shopping

Shopping credit card comparison for different issuing entities becomes simpler by analysing these crucial factors before selection.

Interest Rates

In credit cards, an Annual Percentage Rate (APR) is charged if the full amount utilised from the credit card limit is not repaid on time. The issuing entity will calculate a daily interest rate by dividing the APR by 365. This APR is decided while availing the credit card.

Factors like borrower’s credit score, credit card usage history, financial soundness, etc affect this interest rate. Borrowers can also negotiate this rate before availing the credit card for shopping.

Therefore, borrowers should check the credit card limit and APR before availing credit cards. Moreover, one should discipline its repayment as it affects the overall credit score.

Applications

While focusing on the credit card with shopping rewards, borrowers should also ensure its other applications. Credit cards can be used for loan instalment payments, ticket booking, regular utility bills, airport lounge access, etc. Moreover, it can help automate these payments to avoid missing any deadlines. Therefore, one should check the scope of credit cards along with basic shopping purposes.

Issuing Institution

These days, credit cards are issued by banks, NBFCs, cooperative banks, credit card networks, etc. However, one should check the viability of this issuing entity, its history, legal compliance, market review, offers, etc. Sometimes, new companies attract customers by offering unrealistic discounts and benefits on credit cards. The background and legal viability of these companies should be checked before availing these cards.

In the world of growing digitalisation, credit card frauds are on the rise. Therefore, individuals should duly check the issuing authority and its terms and conditions before taking the credit card.

Reward Points

One of the key features of making payments with credit cards is earning reward points. These reward points can be further used to avail discounts and cashback. Moreover, it can positively influence the credit score of the borrower. An individual should check the potential number of reward points and the transactions that can help earn them.

Fees

Other than interest charged for delayed payment, credit card issuing companies also charge annual account fees, over-limit fees, foreign transaction fees, cash advance fees, etc. These fees are represented in the form of % of the total balance (limit) of the credit card. Sometimes, due to the negligence of the borrowers, companies charge hidden charges mentioned in the terms and conditions. Therefore, one should compare these fees, along with other terms and conditions, before selecting the best credit for shopping.

Assessing these factors can simplify the process for selecting the most suitable credit card. Similar to credit cards, investment selection also needs a thorough analysis.

Some of the Top Shopping Credit Cards in India

To simplify the process for borrowers, here is the curated list of top credit cards for shopping in India. The products are curated based on the best credit card offers for shoppers.

Conclusion

Credit cards are an efficient financial tool to simplify the shopping experience with rewards and discounts. However, selecting the best credit card for shopping can be a tough task. Therefore, individuals should check aspects like interest rate, application, issuing institution, reward points, fees, etc. Informed shopping credit card comparison can help select the most suitable credit card for shopping.