Credit Cards with Premium Benefits

Overview

Premium credit cards are the most beneficial credit cards out of all. Not only these cards offer high reward rate but also gives complimentary access to some of the exclusive and luxurious privileges. However, these benefits come at a high cost, which is usually around Rs. 5,000 to Rs. 10,000 and can go as high as Rs. 50,000.

These credit card comes at a low annual percentage rate as compared to cashback, fuel or travel credit cards. Moreover, the cardholder may also expect some super exclusive privileges like holiday at a private island, travel with chartered flights and vacation at yachts. Some of these credit card so exclusive that the banks/FIs provide the cards by-invitation only, depending upon the relationship customer has been maintaining with the bank and high annual income.

Benefits of Low Interest Rates Credit Cards


High on Annual Saving

Since the credit cards which comes with low interest rate are mostly the lifestyle credit cards and secured credit card, the card holder ends up with great savings on annual basis. These cards usually have low additional charges and comes with exclusive perks like annual fee waiver which makes them great for card holders’ pocket.

Good on Perks

These credit cards are usually good on benefits and facilities offered with the card. These benefits and facilities may include savings on international transactions, high credit limit, high welcome bonus rewards, reward points and cashback on retail transactions, incremental reward points and various offers from partner brands. Even, sometimes banks/fi take the risk of non-repayment when it comes of high net-worth individuals.

Low Annual Percentage Rate

Low annual percentage rate is one of the major benefits on a credit card the card holders loves the most, which helps a lot in term of annual savings as compared to zero annual fee credit card which usually have high annual percentage rates. Since, the applicable interest rate are low, it is quite easy to manage these cards and pay off your credit card debt without making defaults.

Drawbacks of Low Interest Rates Credit Cards


High APR on Other Transactions

Although, low interest credit cards are usually have low annual percentage rates applicable on transactions made on the card, the other transactions like cash withdrawal transactions, fuel transactions, transactions converted into EMIs and Balance transfer on EMIs are not covered into low APR transactions. These transactions comes with regular APR which ranges around 3.50% per month as compared to the retail transactions with low interest rates.

High Annual Charges

Since, some of the these cards are premium credit cards which usually comes with high annual charges ranging as high as Rs. 10,000 to Rs. 20,000, the card holder must be careful when applying for these lifestyle cards. However, most of the banks offers conditional annual fee waiver so the card holders can retain their annual fee if they have crossed a certain annual threshold on the card in a card membership year.

High Income Criteria

The lifestyle cards which comes with low interest rate usually have very high income criteria, making them accessible to a limited number of card holders. Some of these credit cards have pretty high criteria and can only be availed if the card holder being invited by the bank itself or maintaining a premium banking relationship with the bank.

Need of Security

Since, some of these cards are secured credit card, the bank demands a credible security. These secured credit card usually have low annual fees as compared to premium credit cards but the applicable interest rate is slightly higher.

Credit Cards with Low Interest Rates


HDFC Bank Infinia Card

HDFC Infinia Credit Card comes with low interest rate of 1.99% per month. It is a premium card, offered by-invitation to select hdfc credit card holders to only high net-worth individuals maintaining premium banking relationship. The card comes with exclusive benefits like premium airport lounge access, complimentary golf games, travel insurance cover and high reward rate.

The annual charges applicable to avail the card is Rs.10,000. However, you earn bonus membership points worth the equal amount at the start of membership year. Being one of the best card hdfc bank has to offer, it is still inaccessible to most of the card holders due to very high eligibility criteria.

JetPrivilege HDFC Diners Club Card

It is one of the best co-branded credit card hdfc bank has to offer, which returns a great value on travel expenses. Similar to HDFC Infinia Card, it comes with high annual fee of Rs. 10,000 and comes with low interest rate of 1.99% per month.

The card offers 24 JPMiles against each Rs. 150 spend on travel related transactions and 8 JPMiles on regular retail transaction, except the purchase of fuel products.

HDFC Diners Club Black Card

HDFC diners club black card is one of the elite credit card available for frequent travelers which can be held with just half the annual fee of Infinia and JetPrivilege HDFC Diners Club Card (Rs. 5,000 to be exactly) but offers same interest rate of 1.99% per month.

It comes with premium benefits such as access to diners club premium airport lounges across the globe, low foreign currency markup, free golf games at popular domestic and international golf courses, and a welcome bonus reward worth equal to the joining fee of Rs. 10,000. Apart from it, incremental reward points as high as upto 50 points against each Rs. 150 spent at partner brands, travel expenses and utility bill payment.

Indusind Bank Indulge Card

Being an elite premium card offered by Indusind Bank, induldge credit card is accessible to only high net-worth individuals. The card comes with low annual percentage rate equal to 21.48% but high annual fee of Rs. 10,000. However, it comes in two variants, variant 1 which comes with high joining fee of Rs. 1 Lac and annual fee of Rs. 10,000 from 2nd and consecutive membership years. And, variant 2 which comes with zero annual fee for 2nd and consecutive membership year but have a very high joining fee of Rs. 2 Lacs, making it one of the costlier card available to for a newly card members.

However, in exchange of high annual charges, you receive premium lifestyle benefits such as free golf games at premium golf courses worldwide, VIP access to art fairs and museums, dining experiences with celebrity chefs along with annual movie benefits equal to Rs. 7200 and premium airport lounge access. Although, the reward value against each eligible expense is pretty low as compared to hdfc credit cards mentioned above.

HSBC Smart Value Card

HSBC Bank’s Smart Value Credit Card comes with a low APR of 23.88% against low annual fee of Rs. 499 if you maintain a clean repayment track whereas you carry the card free of cost for the first year. However, the downfall of the card is the high APR of 39.60% on cash transaction.

The card offers great value on dining, utility bill payments and online shopping along with travel benefits worth Rs. 2,000 on joining, and is most suitable for you if you swipe the card for most of your purchases.

The income criteria to own this card is pretty average with Rs. 3 Lacs per annum. However, the only downfall of the card is that if you not good at maintaining a good repayment track and make defaults, then you’ll be charged high APR of 35.88% on your purchases against low APR of 23.88% with healthy banking relationship.

Axis Bank Insta Easy Card

Insta Easy Credit Card offered by Axis Bank is a secured credit card which can be availed against a fixed deposit of minimum Rs. 20,000 whereas the maximum amount of the fixed deposit should not be more than Rs. 25 Lacs. Moreover, the fixed deposit should not be a Tax Saver FDs, Flexi-Deposits (Auto-sweep Fixed Deposits) or a Fixed Deposits in the name of HUF/society/trust/companies.

The card comes with low interest rate of 2.50% per month and offers reward value of Rs. 1.5 on domestic transactions and Rs. 3 on international transactions. Apart from it, you receive high credit limit equal to upto 80% of principal fixed deposit amount. However, there are no any other exclusive benefit offered on the card such as welcome bonus reward and cashback on retail transactions other than fuel.

YES Bank Prosperity Rewards Plus Card (Against FD)

It is a secured credit card offered by yes bank which comes with low interest rate of 2.59% per month and offers good reward value on international transactions and online shopping. However, the card holder must have a minimum fixed deposit account of Rs. 50,000 with YES Bank which is pretty high as compared to Axis Bank Insta Easy Card. Whereas the annual fee is just Rs. 325.

The card offers reward value of upto Rs. 1.25 on birthday related expenses and international transactions as well as saves you 0.50% on foreign currency conversions.

Tata Secured Credit Cards

Although, the tata credit cards come with high APR of 40.2%, the secured credit card offered by TATA have comparatively low APR of 30% only. One can avail any tata credit card as a secured credit card, be it tata star platinum credit card, tata platinum card, tata croma platinum credit card, tata star titanium card, tata titanium credit card or tata croma titanium credit card. The platinum credit cards offers reward value of upto Rs. 3 on transactions related to dining, departmental stores, grocery stores as well as international transactions whereas the titanium credit card offers reward value of upto Rs. 3 only against the purchases made at departmental and grocery stores.

PNB Credit Cards

All of the credit cards offered by punjab national bank, be it global platinum credit card, global gold credit card or global classic credit card, comes with low monthly interest rate of only 2.45%. Whereas the platinum credit card comes with annual fee of Rs. 500, the other two credit cards are free of cost.

The global platinum credit card offers reward value of upto Rs. 0.50 as compared to global gold and global classic credit card which offers only Rs. 0.25 reward benefits on each eligible transactions.

However, all of these cards have pretty average benefits as compared to credit cards offered by other leading banks/FIs such as hdfc Bank, icici bank, axis bank and state bank of india etc.

IDBI Royale Signature Card

The royal signature credit card offered by IDBI Bank comes with low annual percentage rate of 30% and zero joining fee whereas the annual fee from 2nd and consecutive card membership years is equal to Rs. 1499. The card holder earns reward value of Rs. 0.75 on every Rs.150 spent on retail purchases except fuel transactions, cash transactions, and EMI transactions.

The card delivers welcome benefit of worth Rs. 187.50 in the first card membership month. As for the privileges available on the card, you get complimentary access to domestic airport lounges and accidental death cover.

However, there is it is costly to carry from 2nd card membership year due to no provision of annual fee waiver. The card seems pretty average as compared to SBI Card PRIME which comes with same annual charges but offers great reward value and benefits.

Canara Bank Credit Cards Card

All of the four credit cards offered by canara bank comes with low APR of 30% and zero annual charges regardless of any canara bank credit card you hold, be it canara visa classic credit card, canara mastercard standard card, canara visa gold credit card or mastercard gold credit card.

Being a canara bank credit card holder, you earn reward value of Rs. 0.50 on every Rs. 100 you spent on your card which is quite better than what PNB credit cards offers.

Moreover, you save 0.50% on all of your international transactions. Apart from it, you receive perks like easy annual fee waiver, personal accidental insurance cover and travel protection plan. Although, you must know that the annual percentage rate on visa classic credit card and mastercard standard card increases to upto 35.4% if you miss your credit card bill payment.

Indian Bank Credit Cards

Credit cards offered by indian bank comes with low interest rate as compared to PNB and Canara Bank. The Platinum credit card offered by Indian Bank comes with interest rate of only 1.66% per month whereas the Bharat Credit card comes with interest rate equal to 1.79% per month. The other three credit cards including visa business card comes with interest rate equal to 1.99% per month. However, the interest rate applicable on cash advance transactions is slightly higher with 2.25% per month as than retail purchases made on the card except Bharat Credit card which have 1.99% monthly interest rate on cash advances.

Although, indian bank credit cards are better than canara bank credit cards in term of interest rate, the reward value earned on these cards is comparatively lower whereas Bharat card doesn’t offer any reward value at all. The card holder earn reward value of only Rs. 0.25 on all these card against every Rs. 200 spent on the card except bharat card.

Things to be considered before applying for Low Interest Credit Cards


Good Credit Score is Essential

Low interest credit card usually offered to card holders who are maintaining a good credit history and have a healthy banking relationship with the financial institution.

High Annual Charges

Since, some of the these cards are premium credit cards which usually comes with high annual charges ranging as high as Rs. 10,000 to Rs. 20,000, the card holder must be careful when applying for these lifestyle cards. However, most of the banks offers conditional annual fee waiver so the card holders can retain their annual fee if they have crossed a certain annual threshold on the card in a card membership year.

High Eligibility Criteria

Most of these low interest credit cards are being offered to high net-worth individuals, the eligibility criteria to avail these cards is pretty high. This may include six figures monthly income and credit score above good.

Need of Security

Since, some of these cards are secured credit cards, the bank demands a credible security (usually issued against fixed deposits. These secured credit card usually have low annual fees as compared to premium credit cards but the applicable interest rate is slightly higher.

Credit Limit

When applying for cards with low interest rate, the credit limit being offered on the card is one of the most essential thing you should check before submitting the application. Since, these cards includes premium cards with high credit limit and secured credit card which comes with credit limit equal to upto deposit amount, you must choose the credit card carefully.

Annual Charges & Other Charges

Since, low APR credit cards includes both premium credit card which usually have high annual charges and secured credit card which comes with low annual charges, you must take a look on the annual charges as well as joining fee. Whereas, most of the banks/FIs waive off some of the additional charges applicable on premium credit card, but the secured credit card are usually excluded from this privilege. However, it mostly depends on the credit card itself and the bank since public sector bank usually charges less additional charges as compared to private sector banks/FIs.