Is this the best first credit card?

When you’re new to credit cards, the number of options out there can be overwhelming, and the jargon and acronyms around points and rewards can sound like a different language altogether. If you’re just about getting started in your career and looking to get your first credit card, my advice would be to pick a card that’s:

• affordable
• accepted widely
• has an easy-to-understand reward system
• actually rewarding

Now these are demanding conditions. Is there a card that fits? Yes. In fact, there are 2 options, and both are cashback credit cards.

What’s a cashback credit card?

A cashback credit card literally gives you cash back. Think of it this way—it’s a permanent discount coupon. Everything you buy using the card will ultimately be discounted.

Why cashback credit cards?

For starters, they’re very easy to understand. It’s no frills, no fuss, straight cash reward. When you’re starting out with cards, it can be tempting to go for a lifestyle card that will give you travel benefits, but those are better suited for people who are already high spenders. If you’re new to credit cards, points cards can push you towards spending more – and unnecessarily. Cashback cards, on the other hand, will help you get a feel for using credit cards while giving you savings.

Not all cashback cards are made equal – here are the two best ones

The best cashback cards are the ones with straightforward rewards. Some cards have ‘cash points’ and others have limits (like this card). In my opinion, the two best cards in this category are:

The SBI Cashback Card

The SBI Cashback ranks first on my list because it has the most straightforward – and the most rewarding cash back system. You get 5% cashback (as a credit on your statement) on all online purchases – irrespective of the vendor. So whether it’s Amazon or Flipkart or Nykaa, your cashback doesn’t change. You also get 1% cashback on offline purchases. There are a list of transactions that are not eligible for cashback – like rent, jewellery, and utilities etc, but if you shop online for the most part, this is a very rewarding card. This card has the best cashback rate (most other cash back cards are limited at 3%).

This is, however, a paid card with fees of Rs. 999/- per year, and the fees are reversed if you spend more than Rs. 2 lakhs in a calendar year (plus you’d have saved Rs. 10,000/- in cash back if all these spends were online!).

You can apply, here (this is not an affiliate/referral link)

The Amazon ICICI Credit Card

The Amazon ICICI credit card is another excellent cash back credit card. It’s second on my list because of the loyalty that it seeks to Amazon, but if you are loyal to the platform, this is a card you should get without second thought. It offers 5% cashback on all Amazon purchases (without any limits!) for Prime members. So while the card is free, it doesn’t make sense if you’re not a prime member. Given that the Prime Membership is rewarding in itself – you get video as well as prioritized delivery – it’s well worth the subscription fee.

The cash back is credited to you as Amazon Pay balance which you can use to set off against future Amazon purchases. Amazon Pay is also a well-accepted payment method so you’re not forced to spend again on Amazon, and can use the balance to pay off utility bills, Swiggy orders etc.

You can apply, here. (this is not a referral/affiliate link)

I hope you found this post useful! Will you be applying for this card? Let me know in the comments. For more info on credit cards, do check out the credit card section on the blog.