Is there a point to getting credit cards if your spending is less than 20k per month?
Title is self explanatory. I rarely spend or shop much. Just travel every few months. Used to have a credit card but got it cancelled. Thinking about getting a new one.
290 Votes
The rewards, lounge access, etc is an extra. Don’t consider them if you don’t want to. A decent spending on the credit card (even if it’s ₹5k) helps maintain a credit history. This is useful when applying for loans.
Another way I see Credit Cards is a source of emergency money. If I have money locked in Mutual Funds or Stocks, it takes time to redeem those. Some funds like Liquid ones have instant redemption, but mostly takes a day or two for other funds to give your money.
Having a credit card is like having an emergency fund. You can swipe now and pay 20-25 days later. I have two credit cards (both free) with a sizeable limit. If something happens and I need money instantly, I can swipe the card.
Obviously, I should always have the money that I swipe in assets I can liquidate before the billing cycle is over. But helps me take more risks by investing in sources that don’t have instant redemption.
Specially in case of a health issue where I’m not in a position to take a decision and withdraw funds, my family can swipe the card. Once I’m in a better position, I can guide my family on what investments they can liquidate and how.
Anise Carmden
Stealth
4 months ago
Fair points, is there a minimum fee no frills card you can recommend?
I got the Amazon Pay ICICI card. Not the best card w.r.t rewards. But I did not want to solve complicated math to maximize rewards. I get a simple 1% cashback as Amazon Pay balance every month. (Some transactions have more)
Aaron Denver
Stealth
4 months ago
Lounge access
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Even if you're just spending 1000 rupees every month, use the credit card (if you have it). You'll maintain a decent credit history in case you want to take loan in future.
Amex Gold Charge is the card to go for if you've less than ₹20k spends in a month. I'd advice to spend ₹72k in an entire year to reap maximum benefits. Feel free to DM to know more about it or check my post on the same
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