Over 55% of young adults in India aged 18-25 don’t have a credit card? This shows the need for easy-to-use credit cards for young people. Whether you’re in college, just graduated, or a young professional, building a good credit history is key for your financial future.
This guide looks at 9 Top Credit Cards for Young Adults. They offer low or no annual fees, great cashback and rewards, and tools to build credit. From starter cards to premium ones with travel perks, we’ve got you covered. Start your financial journey with the right credit card.
Key Takeaways: 9 Top Credit Cards for Young Adults
- Discover the importance of building credit history early as a young adult
- Explore the benefits of using a credit card, including cashback, rewards, and credit-building features
- Learn about the key criteria for selecting the best credit cards for young adults, such as low or no annual fees and robust rewards programs
- Discover 9 top-rated credit cards that cater to the unique needs of young consumers in India
- Understand the features and benefits of each credit card option to make an informed decision
Introduction to Credit Cards for Young Adults
Young adults need a strong credit history as they start their financial journey. Credit cards are key for building credit and opening doors to better financial options later on.
Importance of Establishing Credit History Early
A good credit history brings many benefits. It can lead to lower interest rates on loans and access to top financial products. By using credit cards wisely and paying on time, young adults can boost their credit scores.
Benefits of Having Credit Cards for Young Adults
- Convenient Cashless Transactions: Credit cards make shopping easy without needing cash.
- Rewards and Cashback Programs: Many cards offer rewards and cashback, helping young adults earn points or cash on their purchases.
- Building Positive Credit History: Using credit cards responsibly can help young adults build a strong credit profile.
Understanding credit history and credit card benefits is key. Young adults can make smart choices and build a strong financial base for their future.
Criteria for Selecting the Best Credit Cards for Young Adults
Choosing the right credit card as a young adult is important. Look for cards with low or no annual fees. This helps avoid extra costs, especially when starting to build credit.
Rewards and cashback programs are key. They let young adults earn benefits on daily spending. For example, the IDFC FIRST Bank Power+ Card saves up to ₹18,500 a year on fuel, which is like buying 175+ litres of fuel.
It’s also important to focus on credit-building features. Cards that report to all three major credit bureaus are best. They help increase your credit limit over time. This is crucial for improving your credit score and future financial success.
| Criteria | Importance | Example |
|---|---|---|
| Low or No Annual Fees | Helps young adults avoid unnecessary costs | IDFC FIRST Bank Power+ Card has a dynamic interest rate starting at just 9% APR |
| Rewards and Cashback Programs | Allows young adults to earn valuable benefits on everyday spending | IDFC FIRST Select Card provides up to 10X never-expiring rewards points on card expenses |
| Credit-Building Features | Helps young adults establish and improve their credit scores | IDFC FIRST WOW! Credit Card has a credit limit of at least 100% of the FD value and 100% ATM cash withdrawal limit |
By looking at these criteria, young adults can find great credit cards. These cards help build a strong financial base for the future.
9 Top Credit Cards for Young Adults
Choosing the right credit card as a young adult can be tough. But, there are many options out there. You can find a card that fits your financial needs and lifestyle. Here are 9 top credit cards for young adults in India:
- HDFC Bank Diners Club Rewards Card
- SimplyCLICK SBI Card
- Axis Bank Neo Credit Card
- AmazonPay ICICI Bank Credit Card
- Citibank Cashback Credit Card
- American Express Membership Rewards Credit Card
- Standard Chartered Super Value Titanium Credit Card
- HSBC Visa Platinum Card
- Milestone Benefits and Lounge Access Credit Card
These credit cards have different features. They include low or no annual fees, cashback and points programs, and help with building credit. Whether you want to start building your credit, earn rewards, or enjoy special perks, there’s a card for you.
When picking a credit card, think about your spending, financial goals, and what you qualify for. Knowing what each card offers helps you choose wisely. This choice can help you financially succeed as a young adult.
Citibank Cashback Credit Card
The Citibank Cashback Credit Card is great for young adults who want to earn cashback on daily purchases. It offers a flexible cashback program. This helps users save money while building their credit score.
Cashback Rewards on Various Spending Categories
The Citibank Cashback Credit Card gives 5% cashback on certain spending categories. These include online shopping, dining, and groceries, up to a monthly limit. This way, cardholders earn more on their frequent purchases.
Additional Savings and Discounts
Aside from cashback, the card also offers exclusive savings and discounts at certain merchants. This makes it easier for young adults to save money. It’s a good choice for those who want to save while using a credit card.
| Feature | Details |
|---|---|
| Cashback Rate | Assured cashback of 0.5% on all spending, with accelerated cashback of 5% on movie ticket bookings, telephone bill payments, and utility bill payments. |
| Dining Discount | Up to 20% off on dining bills at partner restaurants. |
| Foreign Currency Markup | 3.5% of the transaction amount. |
| Interest Rate | 3.75% per month. |
| Fuel Surcharge Waiver | 1% fuel surcharge waived off at IndianOil Corporation outlets. |
| Cash Advance Charges | 2.5% of the cash withdrawn, or Rs. 500, whichever is higher. |
| Joining and Renewal Fees | Rs. 500 + GST for both joining and renewal. |
| Age Eligibility | Applicants should be between 23 years to 60 years old. |
| Cashback Redemption | Automatically credited to the account in multiples of Rs. 500. |
| Reward Points Redemption | Cashback adjusted against the card’s statement balance in multiples of Rs. 500. |
American Express Membership Rewards Credit Card
The American Express Membership Rewards Credit Card is a top pick for young adults. It earns 2 Membership Rewards points for every dollar spent. You can use these points for travel, gift cards, or statement credits.
It also gives access to special Amex Offers. This adds more value for young people.
This card has a great reward system. Centurion Cardmembers get 6 points and 114 Bonus points for every INR 200 spent. Platinum Cardmembers get 1 point and 19 Bonus points for every INR 40 spent at certain places.
This means young adults can earn points fast. They can then use these points for many benefits.
The card also has other perks for young people. There are no annual or renewal fees for the first year. Plus, you can earn 2,000 Membership Rewards points each month by meeting certain spending goals.
It also offers exclusive discounts and offers. This makes it a great choice for young adults.
In summary, the American Express Membership Rewards Credit Card is perfect for young adults. It helps build credit and rewards everyday spending. Its generous rewards and extra benefits make it a top choice in the rewards credit card for young adults market.
Standard Chartered Super Value Titanium Credit Card
The Standard Chartered Super Value Titanium Credit Card is a top pick for young adults. It helps them save money on daily costs. You get 5% cashback on fuel, utility bills, and phone recharges.
Cashback on Fuel, Utility Bills, and Phone Recharges
This credit card offers big savings on everyday needs. The 5% cashback on fuel, utility bills, and phone recharges is a big help. It’s perfect for those starting to build their credit.
Exclusive Offers and Benefits
- Get special discounts and offers at many partner merchants. This means more savings on dining, shopping, and fun.
- Accumulate reward points on your daily buys. Use them for gift cards, travel, and more.
- Enjoy a dedicated concierge service. They’ll help with your lifestyle and travel needs.
The Standard Chartered Super Value Titanium Credit Card is great for young adults. It helps them build a good credit history and rewards them for daily spending. With its high cashback rates and special offers, it’s a wise choice for young people in India.
HSBC Visa Platinum Card
The HSBC Visa Platinum Card is perfect for young adults. It has no annual or renewal fees. You can earn points on your purchases and use them for many benefits. Plus, it offers dining discounts at certain restaurants.
No Annual or Renewal Fees
This card stands out because it doesn’t have any fees. Young adults can enjoy its premium benefits without extra costs. It’s a smart choice for those starting to build their credit or manage their money.
Reward Points and Dining Discounts
- The HSBC Visa Platinum Card has a points program. You earn points on your purchases.
- You can use these points for gifts, travel, and more.
- It also gives you dining discounts at some restaurants. This lets young people enjoy meals at good prices.
The HSBC Visa Platinum Card is great for young adults. It offers no fees, points for purchases, and dining discounts. This card helps young people build their credit and manage their money well.
HDFC Bank Diners Club Rewards Card
The HDFC Bank Diners Club Rewards Card is perfect for young adults who travel a lot. It gives more reward points for spending abroad. Plus, it offers travel perks like free lounge access, making it great for those who love to explore the world.
Increased Rewards on International Spends
With this card, you get 5 Reward Points for every ₹150 spent abroad. You also get 10,000 Bonus Reward Points for spending ₹4 lakhs in a quarter. And, you earn 2X Reward Points on weekend dining, helping you earn more rewards.
Travel Benefits and Lounge Access
This card offers many travel perks. You get unlimited access to 1000+ lounges worldwide for you and your add-on card members. It also gives you a fast-track airport experience for a smoother travel. Plus, there are special dining and spa offers for a luxurious travel experience.
| Key Features | Benefits |
|---|---|
| Reward Points Earning |
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| Travel Benefits |
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| Insurance and Covers |
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| Other Benefits |
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Simply CLICK SBI Card
The Simply CLICK SBI Card is perfect for young adults who love online shopping. It’s from State Bank of India (SBI). It gives lots of bonus reward points for online buys, helping you earn more on e-commerce and digital deals.
This card gives 10X reward points for shopping on partner sites like Amazon and BookMyShow. You also get special discounts and gift vouchers at these places. This makes your online shopping even more rewarding.
Bonus Reward Points on Online Spends
The Simply CLICK SBI Card has a great bonus reward points system for online buys. You get 10X reward points for every ₹100 spent on partner sites. It’s a great deal for those who shop online a lot.
Gift Vouchers and Additional Discounts
There’s more to the Simply CLICK SBI Card than just points. It also offers lots of gift vouchers and special discounts at partner merchants. You can get:
- ₹500 Amazon Voucher as a welcome gift
- ₹100 instant cashback on the first movie ticket booked through Book My Show
- ₹700 instant cashback on domestic roundtrip flights worth ₹5,000 or more booked through Clear Trip
- ₹600 off on booking a Self-Drive Zoom car worth ₹2,500 or more
These extra offers and discounts make the Simply CLICK SBI Card a great choice for young adults. It helps you get more value from your online shopping.
Axis Bank Neo Credit Card
The Axis Bank Neo Credit Card is perfect for young adults. It helps you make the most of your spending. You get rewards for different types of purchases, fitting the lifestyle of today’s consumers.
Rewards on Various Spending Categories
With this card, you earn points on dining, entertainment, and daily expenses. It offers a 0.2% reward rate. This means you can collect points for great benefits.
Exclusive Discounts and Offers
The card also gives you special discounts and offers. You can get 40% off on Zomato, twice a month, with a 200 INR spend. Plus, you get 5% off on utility bills via Amazon Pay, up to 150 INR monthly. It’s a smart choice for saving money.
This card is great for young adults. It offers rewards and discounts that match their lifestyle and financial needs.
| Feature | Details |
|---|---|
| Reward Rate | 0.2% |
| Annual Fee | 250 INR+GST (Often issued as Lifetime FREE) |
| Joining Fee | 250 INR+GST (Lifetime FREE at times) |
| Welcome Benefit | 100% cashback up to Rs 300 on first utility bill pay |
| Renewal Fee | 250 INR+GST (Lifetime FREE at times) |
| Reward Points | 1 RP for every 200 INR spend (Reward Rate = 0.10%) |
| Zomato Offer | 40% off on Zomato, up to twice a month |
| Min Spend for Zomato Offer | 200 INR |
| Max Discount for Zomato Offer | 120 INR |
| Additional Benefit | 5% off on Utility bill payments via Amazon Pay (up to 150 INR, once a month) |
| Card expert Rating | 3.8/5 |
Amazon Pay ICICI Bank Credit Card
The Amazon Pay ICICI Bank Credit Card is perfect for young adults who love shopping on Amazon. It offers great cashback on Amazon purchases, helping you save money. It also comes with extra rewards and benefits, making it ideal for those who shop on Amazon a lot.
Cashback on Amazon Purchases
This credit card gives you amazing cashback on Amazon. Prime members get 5% cashback, while non-Prime members get 3% cashback on most items. This makes it a great choice for frequent Amazon shoppers.
Additional Rewards and Benefits
- 2% cashback on over 100 Amazon Pay merchant websites
- 1% cashback on other payments, including e-books, gift cards, bill payments, and mobile and DTH recharges
- 1% surcharge waiver on fuel purchases
- Automatic conversion of earnings into Amazon Pay balance at the end of every billing cycle
The Amazon Pay ICICI Bank Credit Card also offers more rewards and benefits for young adults. It includes exclusive discounts and offers, making it a great choice for those who value convenience and savings.
| Credit Card | Annual Fee | Joining Fee | Cashback on Amazon |
|---|---|---|---|
| Amazon Pay ICICI Bank Credit Card | Nil | Nil | 5% for Prime members, 3% for non-Prime members |
| ICICI Bank Sapphire Credit Card | Rs 3,500 + GST | Rs 6,500 + GST | N/A |
| MakeMyTrip ICICI Bank Signature Credit Card | Nil | Rs 2,500 + GST | N/A |
| ICICI Bank Emeralda Credit Card | Rs 12,000 + GST | Rs 12,000 + GST | N/A |
Milestone Benefits and Lounge Access: 9 Top Credit Cards for Young Adults
Young adults have many credit cards to choose from. These cards offer special benefits and lounge access. They provide perks that make using a credit card more enjoyable.
For example, some cards give you free access to airport lounges. This is great for those who travel a lot. It offers a place to relax and recharge.
Some cards also give you a higher credit limit as you spend more. This encourages young people to manage their money well. It helps them reach financial goals and improve their credit score.
Reward Redemption Options
Young adults look for credit cards with easy reward redemption. The best cards offer many ways to use your rewards. This meets the different needs and preferences of young people.
- Statement credits: You can use rewards to pay off your monthly bills. This is a direct and immediate benefit.
- Travel rewards: Cards like the Chase Sapphire Preferred® Card let you book travel. You can use points or miles for flights, hotels, and more.
- Gift cards and merchandise: Some cards, like the Capital One Quicksilver Cash Rewards Credit Card, let you redeem rewards for gift cards or merchandise. This gives you flexibility to choose rewards that interest you.
The variety and ease of redeeming rewards are key. Young adults want to get the most value from their rewards.
Conclusion: 9 Top Credit Cards for Young Adults
In conclusion, the 9 credit cards mentioned in this article cater to young adults’ needs. They offer various features and benefits. From no-annual-fee cards with cashback rewards to travel cards with special perks, there’s something for everyone.
Young adults in India can find the right credit card by looking at fees, rewards, and how they build credit. This choice is key to starting their financial journey and building a strong credit score.
The global credit card market is expected to hit $1.12 trillion by 2032. This shows how important credit cards are becoming. The cards we talked about have no annual fees, cashback, reward points, and travel benefits.
These features make them great for young adults wanting to build their credit and spend wisely. Whether you want cashback, reward points, or travel perks, these cards have you covered.
By comparing each card’s pros and cons, you can choose the best one for you. This choice will help you on your path to financial success.
FAQs: 9 Top Credit Cards for Young Adults
What are the key criteria to consider when selecting the best credit cards for young adults?
When picking credit cards for young adults, look for low or no annual fees. Also, find cards with good rewards and cashback programs. It’s key to have cards that help build credit, like reporting to all three major credit bureaus and offering credit limit increases.
What are the benefits of having a credit card as a young adult?
Credit cards help young adults build a good credit history. This is important for getting better interest rates on loans and other financial products. They also offer cashless transactions, rewards on purchases, and a chance to build a positive credit profile.
Why is it important for young adults to establish their credit history early on?
Building a strong credit history early is key for young adults. It opens doors to better financial opportunities and stability later. A good credit profile can lead to more favorable terms on loans and credit cards.
What are some of the top credit cards for young adults that offer cashback rewards?
The Citibank Cashback Credit Card and the Standard Chartered Super Value Titanium Credit Card are top picks for cashback. They offer high reward rates on spending like online shopping, dining, and utility bills.
Which credit cards for young adults provide valuable travel benefits and lounge access?
The HDFC Bank Diners Club Rewards Card is perfect for young travelers. It gives more reward points on international buys and offers free airport lounge access. Other cards with travel perks and lounge access are also good options.
Are there any credit cards specifically designed for young adults who make a significant portion of their purchases online?
Yes, the Simply CLICK SBI Card is made for online shoppers. It gives bonus reward points on online buys, helping cardholders earn more on e-commerce and digital purchases.
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