A shopping credit card can be an excellent way to earn rewards, cashback, and discounts. Before applying for a shopping credit card, it’s crucial to understand how they work, their benefits, and potential pitfalls. Here are some important factors to consider when applying for a shopping credit card. Amazon Pay ICICI Bank Credit Card and Flipkart Axis Bank Credit Card, are both popular options in India.
What is a Shopping Credit Card?
A shopping credit card is a type of credit card that offers rewards and benefits for shopping-related transactions. These cards are often partnered with a specific retailer or online marketplace, like Amazon or Flipkart. They provide more reward points, cashback, or discounts when used for purchases at those particular stores or websites. Some shopping credit cards also come with additional perks, such as access to exclusive sales or free shipping.
Things to Consider Before Getting a Shopping Credit Card
Interest Rates and Fees:
As with any credit card, it’s important to understand the interest rates and fees associated with a shopping credit card. Some shopping credit cards may have higher interest rates or annual fees compared to other types of credit cards. It’s important to do your research and compare different options to find a card that fits your financial needs.
Most shopping credit cards come with a rewards program that offers benefits such as cashback, discounts, or rewards points. Understand the rewards program by knowing the eligible transactions and how to redeem rewards. For instance, the Amazon Pay ICICI Bank Credit Card gives 5% cashback on Amazon purchases and 2% cash back on dining, entertainment, and other categories. On the other hand, the Flipkart Axis Bank Credit Card provides cashback on Flipkart purchases, fuel, dining, and entertainment.
Before applying for a shopping credit card, it’s important to understand the eligibility criteria. Some credit cards may have specific requirements, such as a minimum income or credit score, that must be met in order to be approved for the card.
Credit Score Impact:
Applying for a credit card can cause a temporary decrease in your credit score. Try to use the card responsibly and make on-time payments, this will help to improve your credit score over time. It’s important to consider how the shopping credit card may impact your credit score before applying.
Shopping credit cards may provide extra benefits, such as extended warranties, travel insurance, or exclusive sales access. Be sure to read the fine print and understand what benefits are available to you.
Social Media Presence:
Many shopping credit card companies have a social media presence on platforms such as Twitter. Follow the company’s Twitter account to keep informed about promotions, rewards programs, and changes to the card’s terms and conditions. This can help you make informed decisions about your shopping credit card and maximize its benefits.
Amazon Pay ICICI Bank Credit Card
The Amazon Pay ICICI Bank Credit Card is a popular option for frequent Amazon shoppers. The card provides 5% cashback on Amazon purchases and 2% on dining, entertainment, and more. Also, it has no joining or annual fee, making it an ideal choice to save on shopping expenses. It is crucial to note that the card has a high annual interest rate of up to 42%. As a result, it is essential to pay the balance in full each month to prevent accruing interest charges.
Flipkart Axis Bank Credit Card
Another popular shopping credit card in India is the Flipkart Axis Bank Credit Card. This card offers cashback on Flipkart purchases as well as other categories such as fuel, dining, and entertainment. The card also comes with complimentary airport lounge access and a discount on annual membership fees for select gyms. However, it does have an annual fee of Rs. 500, so it’s important to consider this cost before applying.
Getting a shopping credit card can be a great way to earn rewards and discounts on your shopping expenses. However, it’s important to do your research and understand the terms and conditions of the card before applying. Consider factors such as interest rates, rewards programs, eligibility criteria, and additional perks before making a decision. And don’t forget to stay informed by following the credit card company on social media platforms such as Twitter. Consider these factors to select a shopping credit card that suits your financial needs and shopping habits.