What Credit Cards You Should Have by INCOME? [Detailed Review]

Summary

This transcript discusses the benefits and strategies of using multiple credit cards, focusing on maximizing rewards through cashbacks, vouchers, and travel. The speaker shares personal experiences and recommendations for different spending levels, emphasizing the importance of discipline to avoid credit card debt and the use of concierge services for unique benefits.

Takeaways

• 💳 The speaker owns multiple credit cards, possibly over a dozen, and manages them to maximize rewards and benefits.
• 💰 The speaker aims for a 7-8% return on their credit card spending, which can vary depending on the card and spending habits.
• 🏦 Credit card rewards can be categorized into cashbacks, vouchers, and travel-focused rewards, with the latter offering the highest potential returns.
• 🛍️ For those spending around 5 lakh rupees annually, a cashback card like the Amazon Pay IC card is recommended, especially for beginners.
• 🏨 For higher earners with 15-20 lakh rupees annual income, travel-focused cards like the American Express Platinum Travel card are suggested for maximizing travel rewards.
• 🏢 The HDFC India card is highlighted as a top choice for its base reward rate of 3.3% and additional benefits like 5x reward rate on Amazon Pay vouchers.
• ✈️ The Club Vistara Infinite card from Access Bank offers free business class tickets and priority airport services, making it valuable for frequent flyers.
• 🌐 The Axis Atlas credit card is recommended for those with annual spends of 15 lakh rupees, offering bonus miles and high reward rates on travel spending.
• 🎁 The American Express Platinum charge card, despite its high annual fee, provides significant benefits like Taj vouchers, hotel memberships, and concierge services.
• 📊 The speaker emphasizes the importance of managing credit utilization and making timely payments to maintain a good credit score, suggesting not to exceed 30-40% of the available credit limit regularly.
• 📈 The speaker uses social media and public forums to stay updated on the best credit card deals and redemption opportunities, suggesting that planning and research are key to maximizing rewards.

Q & A

What is the average return rate one can expect from using credit cards for expenses?

The average return rate one can aim for is between 7 to 8% on their expenses, depending on the credit card rewards program.

What are the three main types of credit card rewards mentioned in the script?

The three main types of credit card rewards are cashbacks, vouchers or gifts, and travel-focused rewards such as domestic or international travel and hotel stays.

How does the cash back reward system work on credit cards?

Cash back rewards work by providing a percentage of the spent amount back as a statement credit, for example, 2% cash back on a 100 rupee spend.

What is the benefit of using points to get vouchers or gifts from credit card rewards?

The benefit of using points for vouchers or gifts is that it allows cardholders to receive items or discounts on shopping platforms like Amazon or Flipkart without directly paying out of pocket.

How can one maximize rewards in the travel-focused category of credit card rewards?

One can maximize rewards in the travel-focused category by using points for high-value redemptions such as luxurious holidays or stays at premium hotels, which might not be affordable otherwise.

What is the recommended approach for someone with an annual spend of around 5 lakh rupees on choosing a credit card?

For someone with an annual spend of around 5 lakh rupees, it's recommended to look for a cash back card, such as the Amazon Pay IC card, which offers simplicity and rewards on Amazon purchases.

Why is it important to be mindful of spending habits when using credit cards?

It's important to be mindful of spending habits to avoid credit card debt, which is one of the most expensive forms of debt, as interest rates can be as high as 30 to 40% on outstanding balances.

What are some of the benefits of the HDFC Infinia card mentioned in the script?

The HDFC Infinia card offers a base reward rate of 3.3%, 5x reward rate on Amazon pay vouchers, and the ability to redeem points for Indigo flights, making it beneficial for frequent flyers.

How does the American Express Platinum Travel card benefit its users in terms of travel rewards?

The American Express Platinum Travel card offers bonus points on spending, high-value redemption options for hotels and flights, and additional perks like Taj vouchers, making it a strong choice for travel-focused rewards.

What is the significance of the concierge service provided by American Express Platinum Charge card?

The concierge service, or 'con,' is a significant benefit that provides personalized assistance for various requests, from booking hard-to-get reservations to providing immediate help in emergencies.

How does the credit utilization ratio affect one's credit score when managing multiple credit cards?

The credit utilization ratio should ideally not exceed 30-40% of the available limit on a card to maintain a good credit score. Regularly exceeding this limit or missing payments can negatively impact the credit score.