Credit card companies and banks prefer to roll out cards only to those people who have a good credit score. However, the problem is that not all users have a 750+ CIBIL score. There are people who are trying to rebuild their credit scores or are first-time credit card users who don’t have any credit scores. If you are looking to build your credit score and are confused as to which credit card you should apply for, this article will help you in choosing the best credit builder card.
After thorough research and detailed analysis, the Card Insider team presents the top credit-building cards in India. From lifetime-free to secured cards, we will explore the perks, reward rates, benefits, and important features that make these cards preferred by many.
Tata Neu Plus HDFC Bank Credit Card
The Tata Neu Plus HDFC Bank is a co-branded card that mainly targets people who prefer to shop from Tata brands and are loyal HDFC Bank customers. This is the basic card in the Tata Neu series and comes with a joining fee of ₹499 plus taxes. This card offers a pretty beneficial reward rate system where users earn 2% cashback as NeuCoins on spending at Tata brands, 1% cashback as NeuCoins at partner non-Tata brands, and 5% cashback on the Tata Neu app and website. Even though this card does not offer any dining or entertainment perks, it offers other benefits like a welcome bonus of 499 NeuCoins, complimentary domestic airport lounge access once every quarter, and a fuel surcharge waiver. People who make transactions with their credit cards almost every day can receive a spend-based waiver if they spend more than a lakh in the previous year. This is one of the top choices among users who have just begun their card journey.
OneCard
FPL Technologies Pvt. Ltd. has introduced OneCard in partnership with various banks, including Federal Bank, Bank of Baroda, CSB Bank, Indian Bank, SBM Bank, and South Indian Bank. It is available as both a secured and unsecured credit card. With OneCard, you earn Reward Points for every purchase you make, and you can even earn fractional Reward Points for your spending. The card also offers 5x Reward Points on your top two spending categories each month. Since it is a lifetime-free credit card with no hidden charges, you can easily activate the digital card and receive the physical card within 3-5 business days after approval. The foreign currency markup fee is just 1%, making it a great option for international transactions. This card is best to build your credit history for first-time credit card users.
SuperCard
The SuperCard, launched by Flipkart’s fintech company super.money, is a unique secured credit card designed to help many Indians gain access to credit for the first time. It offers a credit limit that ranges from as low as ₹90 to as high as ₹10 lakh, making it very accessible. This lifetime-free card provides attractive benefits, including cashback on purchases—5% on Myntra, 3% on Cleartrip, 2% on Flipkart, and 0.5% on other eligible spends. It has a low starting interest rate of 10.49% and can be easily linked with UPI. The goal of the superCard is to promote financial inclusion, allowing users to build their credit histories easily.
Magnet FD Backed Credit Card
To build your credit score, the Magnet FD Backed Credit Card is a top choice. You need to make a fixed deposit of at least ₹5,000 with SBM Bank, which earns an interest rate of up to 7% per year. This card gives you a credit limit of up to 90% of your deposit, so you can use it for purchases while also earning rewards. A great feature is that there are no joining or annual fees, making it an affordable option for first-time credit card users. When you apply, you get 5,000 ZET Coins worth ₹500, which you can spend on vouchers for popular brands like Amazon and Flipkart. The card also has a low foreign exchange fee of 2.49%, which is better than many other credit cards. With the Magnet Credit Card, you can improve your credit history, access credit easily, and benefit from attractive interest rates, making it a useful tool for anyone starting their credit journey.
IDFC FIRST WoW Credit Card
The IDFC FIRST WoW Credit Card is a lifetime-free card with no joining or renewal fee, making it one of the most preferred cards in the Indian credit card market. This card is backed by a fixed deposit of a minimum amount of ₹10,000 to avail this card. One of the most attractive features of this card is that it has zero forex markup charges, which means if you make international transactions with this card, then you don’t have to pay any fees for those transactions. The reward rate of this card is also quite beneficial, where users earn 4x Reward Points for every ₹150 spent on eligible transactions, excluding fuel, EMI, and cash withdrawal. Users even get a 50% discount of up to ₹300 on movie tickets through BookMyShow, a fuel surcharge waiver, and insurance benefits.
AU NOMO Credit Card
For people who are first-time credit card applicants or want to improve their credit score, the AU NOMO Credit Card is the best choice for them. This card comes with a low joining fee of ₹199 plus taxes and can be easily issued against a fixed deposit. All the Reward Points earned through this card can be easily redeemed at AU Rewardz, where the value of 1 Reward Point = ₹0.25. Users get a welcome benefit of 500 Reward Points and two domestic airport lounge access every quarter on spending ₹30,000 in the previous quarter, and free railway lounge access twice every quarter. One of the most interesting features of this card is the low forex markup fee of 0.99%, which makes international transactions affordable.
Tata Neu Infinity HDFC Bank Credit Card
The Tata Neu Infinity HDFC Bank Credit Card is a co-branded card designed for shoppers and travelers. It comes with a joining fee of ₹1,499 along with taxes. Cardholders can earn exciting rewards, including 10% cashback in the form of NeuCoins when used on the Tata Neu app, 5% on Tata partner brands, and 1.5% on other purchases. This card offers complimentary access to domestic and international airport lounges, with 8 domestic visits and 4 international visits allowed each year. The card also offers generous insurance benefits, including ₹1 crore coverage for air accidents and ₹15 lakhs for emergency hospitalization. To waive the annual fee, you need to spend ₹3 lakhs or more in a year. Other perks include a low foreign currency markup fee of 2% and a 1% fuel surcharge waiver on fuel purchases between ₹400 and ₹5,000.
Comparing the Credit Builder Cards
| Features | AU NOMO Credit Card | OneCard | Tata Neu Plus HDFC Credit Card |
| Joining Fee | ₹199 + GST | Nil | ₹499 + GST |
| Reward Rate |
|
|
|
| Reward Redemption | RP can be redeemed at AU Rewardz | RP can be redeemed for cashback | RP can be redeemed through the Tata Neu app |
| Welcome Benefits | 500 RP worth ₹125 on making a transaction within 30 days of card issuance | N/A | On making a successful first transaction, 499 NeuCoins will be credited |
| Forex Markup Charges | 0.99% | 1% | 3.5% |
| Travel Benefits |
|
N/A | Complimentary domestic airport lounge access once every quarter |
Bottom Line
While many used to be skeptical of credit cards in the past, the situation has greatly improved for the better. Cards are not only trending, but they have also proven their worth and usefulness to the masses. To avail yourself of a good, rewarding credit card, it’s very important to have a decent credit score and credit history. While those of us with multiple cards just have to act fiscally responsible, it’s difficult for newcomers to get a good credit card. That is why in our article, we have covered some of the best credit score builder cards with which one can easily start their credit journey. Not only are these cards available against a fixed deposit, but they are also considered to be highly rewarding.