Best Credit Cards for Beginners || Best FD Credit Card || Best Credit Card for Students

bekifaayati

13 Jun 202408:20

Summary

TLDRThe video script discusses credit cards for different categories of individuals based on their credit scores. It highlights options for those with low or no credit scores, such as FD-based credit cards, and recommends specific cards like the Amazon 2 Time Free category and the ICICI First Wealth Credit Card for premium benefits. The script also mentions the Magnet FD Credit Card, which offers high approval rates and rewards, and the new HDFC Pixel Play card with cashback offers. It emphasizes the importance of credit cards for building or improving one's credit score.

Takeaways

😀 The video discusses credit cards for two categories of people: those with low or no credit score, and those looking for their first credit card.
🏦 For the first category, there are many FD-based credit cards available in the market, where up to 80-100% of the fixed deposit amount is given as credit limit.
🔑 The second category has options for those with a decent credit score and looking for their first credit card, with the video recommending specific cards with cashback offers.
💳 The Amazon 2% cashback card is recommended for the second category, offering cashback on fuel and non-Prime users, with additional benefits on Amazon's.
🛒 The 'Arb Company U' card is highlighted for its cashback on all payments except fuel and gold, with a special mention of its development from July 1, 2024.
💡 The speaker mentions that the 'Ayur Card' has announced a new debit card development, which is speculated to be coming to credit cards soon.
🏦 The video talks about improvements in credit cards by banks like 'Ay Bank' and 'General Bank' to attract new customers.
💎 The 'IDBI First Wealth Credit Card' is recommended for those with a balance of 2 to 4 lakhs in their account with IDBI, offering lifetime free benefits and rewards.
💳 The 'Magnet FD Credit Card' is introduced as an option that doesn't require a credit score, with a 100% approval rate and a 7% interest rate on FD.
🎁 The 'Magnet Card' offers rewards of ₹5000 on approval, which can be used as brand vouchers, and has a high reward rate for top brands like Amazon.
📲 To apply for the 'Magnet Card', one must download the 'Z App', sign up, and follow the application process, which is described as having no chance of rejection.

Q & A

What are the two categories of people the video script discusses regarding credit cards?
-The script discusses two categories: those with either very low or no credit score, and those with a decent credit score looking to get their first credit card.
What does the script suggest for people with no credit score or a very low credit score?
-The script suggests that for people with no or very low credit score, there are many FD-based credit cards available in the market, which offer credit limits based on the amount of FD (Fixed Deposit) they have with their bank.
What is the benefit of FD-based credit cards mentioned in the script?
-FD-based credit cards offer credit limits that can range from 80% to 100% of the amount of the Fixed Deposit, which can be beneficial for those with limited or no credit history.
What is the script's first recommendation for the second category of people looking for credit cards?
-The script's first recommendation for the second category is the Amazon 2% cashback credit card, which offers cashback on fuel and groceries and is suitable for those who have been using it for the last three years.
What are the cashback offers provided by the Amazon 2% cashback credit card as per the script?
-The Amazon 2% cashback credit card offers 5% cashback on fuel and groceries and 3% cashback for non-prime users, along with 2% cashback on Amazon purchases.
What is the script's recommendation for credit cards that offer cashback on payments for utilities, insurance, loans, and education?
-The script recommends a credit card that provides 0.25% cashback on such payments, although it does not specify the name of the card.

Outlines

00:00

💳 Credit Card Options for Low Credit Score Individuals

This paragraph discusses credit card options for individuals with low or no credit score. It highlights FD-based credit cards available in the market, which offer credit limits of 80 to 100% of the FD amount with the bank. The script also mentions limited options for the first category of people and recommends a good option. For the second category with decent credit scores, the script recommends the Amazon 2 Time Free category and the ICICI Infact card, which offers cashback on fuel and groceries, and other benefits like free accident and travel insurance. It also touches on the improvements made by banks to attract new customers and the potential for credit card developments in the future.

05:00

📱 Application Process for the Magnet FD Credit Card

The second paragraph outlines the application process for the Magnet FD Credit Card, which is suitable for people without a credit score or looking to build one. It requires a valid PAN card, Aadhaar card, and a linked mobile number. The applicant must download the 'z' app, sign up, and select the FD amount. Basic details such as date of birth, email address, marital status, and assets need to be entered. Aadhaar verification and bank account verification are part of the process, ensuring a smooth application experience with minimal chances of rejection. The paragraph also mentions the benefits of the card, including cashback on dining and entertainment, and the potential for earning reward points and complimentary access to various services.

Mindmap

Keywords

💡Credit Score

A credit score is a numerical representation of an individual's creditworthiness, which lenders use to assess the likelihood of the person defaulting on a loan. In the video's context, it is mentioned that people with low or no credit score are categorized differently for credit card offers, affecting their eligibility and the terms they receive.

💡Credit Card

A credit card is a payment card issued by financial institutions that allows cardholders to borrow funds to make purchases. The script discusses various credit cards tailored for different credit score categories, emphasizing the importance of choosing the right card based on one's financial profile.

💡Category

In the script, categories refer to different segments of potential credit card users based on their credit score. The video mentions 'first category' for those with low or no credit score and 'second category' for those with a descent credit score, each with specific credit card options.

💡FD-Based Credit Cards

FD-Based Credit Cards are a type of credit card linked to a Fixed Deposit (FD) account. The script explains that these cards offer credit limits based on 80% to 100% of the FD amount, providing a financial option for those with low credit scores.

💡Discount Options

Discount options refer to special offers or benefits provided to credit card users. The video script mentions that the second category of credit card users can avail of discount options, which are an incentive to apply for and use certain credit cards.

💡Cashback

Cashback is a reward system where a portion of the money spent on a credit card is returned to the cardholder. The script discusses various cashback offers on different credit cards, which is a key feature for consumers looking to maximize their rewards.

💡Amazon

In the context of the video, Amazon is mentioned as a platform where certain credit cards offer cashback or rewards for purchases made. This indicates a specific use case for credit card benefits, highlighting the value of such cards for online shoppers.

💡Insurance

The script mentions insurance as one of the benefits that come with certain credit cards, such as personal accident and travel insurance. These benefits add value to the card by providing additional coverage for the cardholder.

💡Annual Fee

The annual fee is a yearly charge that credit card users must pay to maintain their card. The video discusses cards with 'lifetime free' benefits, which means no annual fee is charged, making them more attractive to users looking to avoid such costs.

💡Magnet Credit Card

The Magnet Credit Card is specifically highlighted in the script as an FDI (Fixed Deposit Investment) card with no credit score requirement. It offers a high credit limit and rewards, making it an attractive option for those without a credit history or with low credit scores.

💡Rewards Rate

Rewards rate refers to the percentage of cashback or points earned on a credit card for every unit of currency spent. The script compares the rewards rate of different credit cards, emphasizing the higher rates offered by certain cards as a significant benefit.

Highlights

Video is divided into two parts for different credit score categories.

First category is for those with very low or no credit score who want to get a credit card.

Second category is for those with a descent credit score looking to get their first credit card.

There are many FD-based credit cards available for the first category in the market.

FD-based credit cards offer 80 to 100% credit limit based on the FD amount.

Limited options available in the market for the second category but a good option will be recommended.

Amazon 2x free category and I've been using it for the last three years.

5% cashback on fuel and 3% for non-Prime users, 2% on Amazon's may trip urban company.

Other recommendations include 1% cashback on all payments except fuel and gold offers.

Ayudh Infact offers 1% cashback on online spends with a variety of credit cards.

There are very few cards in the market offering cashback in this category at this time.

Date you card has announced development from July 1, 2024, but only for debit cards for now.

Expectations are high that this development will soon be announced for credit cards as well.

A lot of improvements have been made to credit cards by banks like Date you and General Bank.

Recommendation for the second category is the IDBI First Wealth Credit Card.

This premium card is not available for free and requires a minimum account balance of 2 to 4 lakhs with IDBI.

The card offers free domestic and international lounge access, free call services, and free locker services.

Comes with personal accident and travel insurance up to 1 crore, all completely free.

Magnet FD Credit Card is recommended for those without credit score, offering a 100% credit card approval rate.

This card offers a 7% interest rate on FD and is protected by RBI, with a minimum age requirement of 18 plus.

Additional rewards of ₹5000 on approval and a top brand reward rate of up to 4%.

Application process is straightforward through the z app, requiring basic details and PAN card verification.

Brand new card launched in the market called the ADSCI Pixel Play, offering 5% cashback on various spends.

Last recommendation in this category is the Harmanth 15000 Spend, offering 1.5% cashback with additional features.