Best Entry-Level Credit Cards in India : Know The Key Highlights

Entry-level credit cards are an exceptional financial tool for novice/entry-level earners. Not only do they provide the convenience of borrowing money in a jiffy, but they also facilitate building a good credit score and offer various benefits simultaneously. These benefits typically include lower credit limits, rewards, cashback, lounge access, exclusive discount, etc.

At present, the Indian market is teeming with numerous Banks/NBFCs vying to proffer appealing credit cards with exciting benefits. And opting for the best among many can seem challenging. By doing so, we have meticulously analysed 50 + prevailing entry-level credit cards in India and curated a list of the best options available. Moreover, this comprehensive guide will discuss the features, benefits, required documents, and eligibility criteria — or how to meet the eligibility criteria if you fall slightly shorter from the minimum requirements. 

What is an Entry-Level Credit Card?

An entry-level credit card is a type of credit card exclusively crafted for beginners who are new to income or have a low income. These cards are easily obtainable, as they have low or no joining fees, modest eligibility criteria, and minimal document requirements. Generally, these cards’ minimum income requirement ranges from Rs. 3  to Rs. 4.2 lakhs per annum; I.e., around 25,000 to 35,000 per month. 

Best Entry-Level Credit Cards in India 

Here we have listed the best entry-level credit cards in India across different categories such as shopping, travel, fuel, rewards, cashback, and cards with premium features.

Credit Card	Annual Fee	Reward Rate
Axis Ace Credit Card	Rs. 499 (waived on Rs. 2 lakh spent)	2% – 5% cashback
HSBC Cashback Credit Card	Rs. 750 (waived on Rs. 1 lakh spent)	1% – 1.5% cashback
SBI SimplyCLICK Credit Card	Rs. 499 (reversed on Rs. 1 lakh spent)	0.25% – 2.5% reward points
HDFC MoneyBack Credit Card	Rs. 500 (waived on Rs. 50,000 spent)	0.2% – 0.4% reward points
Amazon Pay ICICI Credit Card	Nill	1% – 5% cashback

Axis Ace Credit Card

The Axis Ace Credit Card is known as a cashback credit card. This offers a variety of benefits on online payments, dining, travel, and fuel. The joining fee for this card is Rs. 499, while the interest rate is 3.6% per month or 52.86% annually. This rate only applies if you cannot clear all your outstanding amounts by the due date.

Here are the key benefits of the Axis Ace Credit Card:

• You get 5% cashback on bill payments and mobile recharges via the Google Pay app.
• You get 4% cashback on Swiggy, Zomato, and Ola transactions.
• You get 2% cash back on all other transitions/spends.
• You get 1% fuel surcharge waiver on fuel purchases at all fuel stations across India.
• You get 4 complimentary lounge visits per year at select domestic airports.
• You get up to 20% off at 4000+ partner restaurants under the Axis Bank Dining Delights program.
• You can convert your purchases of Rs. 2,500 or more into EMI with flexible tenure options.
• You can get your joining fee of Rs. 499 reversed if you spend Rs. 10,000 within 45 days of card setup. You can also get your annual fee of Rs. 499 waived off if you spend Rs. 2 lacks in the preceding year.

Key Highlights

Suitability	Cashback
Joining Fee	Rs. 499
Main Benefits	Up to 5% cashback on Google Pay, Zomato, Swiggy, and Ola.

HSBC Cashback Credit Card

HSBC Cashback Credit Card is one of the finest entry-level credit cards in India that offer decent cashback on all of your online transactions. Besides, it lets you avail of exciting offers on brands like Amazon, Myntra, BookMyShow, and more, making this card a great option for both shopping and saving. Notably, this card requires no joining fees, and the interest rate is 3.49% per month or 41.88% annually. This rate only applies if you cannot clear all your outstanding amounts by the due date.

Here are the key benefits of the HSBC Cashback Credit Card:

• You get 1% to 1.5% cashback on all your spending. 
• Zero joining fees and get your annual membership fee of Rs. 750 reversed if your total annual spend exceeds Rs. 1 lakh.
• You get a free Amazon gift card worth Rs. 500 as a welcome benefit. You can also get other welcome privileges, such as vouchers from Swiggy, Myntra, Ajio, SonyLIV, etc. on a single transaction of a minimum of Rs. 2,500 within 30 days of card issuance.
• You can get Cleartrip e-vouchers worth Rs. 2,000 each on annual online spends of Rs. 1 Lakh and Rs. 2 Lakh.
• You get 1% fuel surcharge waiver on fuel purchases at all fuel stations across India.
• You get up to 20% off at over 4,000 partner restaurants under the HSBC Dining Delights program.
• You can get a 5% discount on spending Rs. 1,000 or above on Amazon (maximum discount of Rs. 250 per month).
• You can convert your purchases of Rs. 2,500 or more into EMI with flexible tenure options.
• You can enjoy contactless technology that allows you to pay by just waving your card at a secured reader.

Key Highlights

Suitability	Cashback & e-Shopping Rewards
Joining Fee	Nil
Main Benefits	Up to 1.5% cashback on all spending. Reward points on Amazon, Swiggy, Myntra, Ajio, SonyLIV, etc.

SBI SimplyCLICK Credit Card

SBI SimplyCLICK Credit Card has caught the eyes of every credit card applicant as it is typically crafted for online purchases. The joining fee for this card is Rs. 499, while the interest rate is up to 3.50% per month or 42% per annum. The interest rate only applies if you cannot clear all the outstanding amounts by the due date. 

Here are the key benefits of the SBI SimplyCLICK Credit Card:

• You get 10X reward points on online shopping with SBI exclusive partners. These typically entail Amazon, Myntra, BookMyShow, Dominos, Eazydiner, Netmeds, Lenskart, UrbanClap, Cleartrip,  Yatra, Zoomcar, etc.
• You get 5X reward points on all other online spends.
• You get a free Amazon gift card worth Rs. 500 as a welcome benefit.
• You get Cleartrip e-vouchers worth Rs.2,000 each on annual online spends of Rs.1 lakh and Rs.2 lakh.
• You get 1% fuel surcharge waiver on fuel purchases at all fuel stations across India.
• You get your annual fee of Rs. 499 reversed if you spend Rs. 1 Lakh in the preceding year.
• You can enjoy contactless technology that allows you to pay by just waving your card at a secured reader.

Key Highlights

Suitability	e-Shopping Rewards
Joining Fee	Rs. 499
Main Benefits	Reward points on Amazon, Myntra, BookMyShow, Dominos, Eazydiner, Netmeds, Lenskart, UrbanClap, Cleartrip,  Yatra, and Zoomcar.

HDFC MoneyBack Credit Card

The HDFC MoneyBack card is a premium credit card that offers reward points on every transaction, with even greater benefits on all your online spending. The joining fee for this card is Rs. 500, while the interest rate is 3.49% per month or 41.88% annually. The interest rate is applicable only if you cannot clear all your outstanding amounts by the due date. 

Here are the key benefits of the HDFC MoneyBack Credit Card:

• You can earn 2 reward points for every Rs. 150 spent on your card (excluding fuel, wallet loads, prepaid card loads and voucher purchases).
• You can earn 4 reward points for every Rs. 150 spent online (excluding the transfer of funds to online wallets)
• You can redeem your reward points as cashback against the outstanding amount on your card. Each reward point is equivalent to Rs. 0.30.
• You can get a free welcome benefit of 500 cash points.
• You can get a quarterly spend-based benefit of a gift voucher worth Rs. 500 on spending Rs. 50,000 or more each calendar quarter.
• You can get your annual fee of Rs. 500 reversed if you spend Rs. 50,000 or more in the preceding year.
• You get 1% fuel surcharge waiver on fuel purchases at all fuel stations across India.
• You can get up to 20% off at over 4,000 partner restaurants under the HDFC Bank Dining Delights program.
• You can convert your purchases of Rs. 2,500 or more into EMI with flexible tenure options.
• You can enjoy contactless technology that allows you to pay by just waving your card at a secured reader.

Key Highlights

Suitability	Reward points on all spending
Joining Fee	Rs. 500
Main Benefits	Reward points on all spends.

Amazon Pay ICICI Credit Card

ICICI Bank, in association with Amazon, offers an array of benefits that encompass both cashback and rewards on Amazon and its partner merchants. Notably, it requires no joining or annual fees, making it a lifetime-free credit card. The interest rate of this card is 3.5% to 3.8% per month (or 42% to 45.6% annually) if you cannot clear all your outstanding amounts by the due date. 

Here are the key benefits of the Amazon Pay ICICI Credit Card:

• Free from joining fee and annual fee
• You get 5% cash back on every purchase made at Amazon for Amazon Prime members, and 3% cash back for non-Prime members. Besides, you get 2% cash back on transactions made at over 100 Amazon Pay merchant partners, and 1% on all other payments. The cashback will be an Amazon Pay balance, and there is no limit or expiry date on the rewards earned using this card.
• You get an Amazon gift card worth Rs. 500 as a welcome benefit. 
• You can also get other welcome privileges, such as vouchers from Swiggy, Myntra, Ajio, SonyLIV, etc., on a single transaction of a minimum of Rs. 2,500 within 30 days of card issuance.
• You get a 1% fuel surcharge waiver on fuel purchases at all fuel stations across India.
• You can get up to 20% off at over 4,000 partner restaurants under the ICICI Bank Dining Delights program.
• You can convert your purchases of Rs. 2,500 or more into EMI with flexible tenure options.
• You can enjoy contactless technology that allows you to pay by just waving your card at a secured reader.

Key Highlights

Suitability	Cashback & e-Shopping Rewards
Joining Fee	Nil
Main Benefits	Cashback and rewards on Amazon and its partner merchants

What are the Requirements to Qualify for an Entry-Level Credit Card?

To qualify for an entry-level credit card in India, you must meet the following requirements:

• You must be at least 18 years old.
• You must be an Indian resident.
• You must have a stable monthly or annual income. The minimum income requirement varies from card to card but usually ranges from Rs. 25,000 to Rs. 35,000 per month.
• You must have a satisfactory credit history. Typically, a credit score of 750 and above consider as favourable.

How Can I Improve My Chances of Getting Approved for an Entry-Level Credit Card?

Suppose you have a low income or a limited credit history; there are certain steps you can take to improve your chances of getting approved for an entry-level credit card in India.

Build a good credit report: Repay your bills and EMIs on time, as well as check your credit report regularly to ensure that whether any errors or discrepancies may occur or not, you can exhibit a positive credit report. Typically, banks consider a credit score of 700 and above as favourable.

Apply credit card that matches your profile: In general, credit cards with more features and benefits typically require higher credit scores, so don’t expect to be approved for a premium card with a credit score in the low 600s. Hence, it is crucial to ensure that you meet all criteria set by the card issuer before proceeding with your application. 

Minimal your debt-to-income ratio: You shout maintain your debt-to-income ratio below 30%. Namely, the debt-to-income ratio depicts how much your monthly income goes towards paying your debts. A higher debt-to-income ratio indicates that you rely too much on credit and may have trouble paying it back, potentially leading the card issuer to reject your loan application. Ideally, one can reduce his/her DTI ratio by either increasing their income or reducing their debts. 

Avoid applying for multiple credit cards at once: Avoid applying for multiple card applications as each application will be recorded on your credit report and can temporarily lower your credit score. Moreover, it may raise concerns for the card issuer as it indicates that you are credit-hungry and may have difficulty repaying your debts.

What are the Benefits of Using an Entry-Level Credit Card?

Some key benefits of using an entry-level credit card in India are:

• You can earn rewards and cashback for spending with credit card rewards programs. Subsequently, you can redeem these rewards and cashback for various products or services, such as shopping, dining, travel, and more.
• You can enjoy additional features and services such as fuel surcharge waivers, dining discounts, lounge access, insurance, protection, concierge services, etc., depending on your chosen card.
• You can build a better credit score by using your card responsibly and paying your bills/EMIs without default. A good credit score can help you get better loans and credit cards in the future.
• You can defend yourself from fraud and theft using your card instead of cash or debit cards. Most credit cards come equipped with security measures to prevent unauthorized transactions and provide reimbursement in case fraud may occur.

How to Choose the Best Entry-Level Credit Card?

You can follow these three simple steps to choose the best entry-level credit card in India:

Step 1: Checking your credit score might be an ideal step you can take at first. Because the first thing the card issuer considers when they see your credit card application is how positive your credit score is.  

Step 2: Decide what type of credit card you want. In general, three types of credit cards are cashback, rewards, and low interest. Cashback cards offer a percentage of your spending as cash, while rewards cards provide points or vouchers you can redeem for various purchases. On the other hand, low-interest cards offer lower interest rates than other cards.

Step 3: Compare the features and charges of different cards within your chosen card type. 

Step 4: Pick the card that offers the highest overall value in terms of benefits, rewards, savings, and convenience.

How to Upgrade My Entry-Level Credit Card to a Higher-Tier Card in the Future?

• Calling your existing card issuer is the best way to make your request. Use the number on the back of your card to contact the issuer and inquire about your upgrade options and the upgrade process. 
• When possible, make an effort to negotiate. Namely, it is always worth asking your issuer what other benefits you may receive or if better options are available than their initial offer. Doing so can ensure you get the most favourable terms and benefits available for your credit card.
• After considering all the details and finding the right upgrade, you can move forward with the process.
• Wait for your issuer to send you a targeted upgrade offer. Once you receive it, read the instructions carefully before accepting it.

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Bottom Line

We live in a world where everything is just a tap away. This convenience extends to your credit activities as well. Entry-level credit cards in India offer a viable option for individuals who want to make purchases without immediate payment and settle their bills later. Besides, you can enjoy various benefits, rewards, and the feasibility of building a robust credit score simultaneously. However, it is important to note that different banks offer various rates and terms for the same services. So, before applying for your new credit card, it is prudent to ensure that you have thoroughly compared features such as interest rates, annual fees, credit limit, etc., and then ultimately pick the one that suits your needs and lifestyle.