For middle-class people, the credit card is a best friend if used wisely.
Until a year ago I was rarely using my HDFC credit card, I never know the difference between VISA and MasterCard. I was least bothered about which credit card I was holding and what is the terms and conditions in it. The reason for not paying attention was because my father once cut his credit card into pieces. I didn’t even ask him why did he do so but I cultivated a habit of never be loaned.
All my transactions were on my Digibank by DBS debit card, not even on my savings account debit card.
I had my company’s current account with IndusInd Bank because they offered zero balance current account for the private limited company. I don’t even remember how I ended up coming to know about IndusInd bank then, but I wish to thank whoever introduced me to IndusInd Bank now.
The relationship manager was nudging me to get a credit card. I said to him I already have HDFC Regalia credit card, my credit limit is more than enough and I do not want my CIBIL score to be affected by opting for another credit card. He was persistent and tried to sell me IndusInd Signature Legend credit card at a 24,000 rupees + GST.
Just to avoid his calls and maintain a relationship one fine day I said fine, let me get it based on card-to-card process. By this way, he proclaimed it won’t affect the CIBIL score I don’t if it really works that way.
I did a detailed study on the card and that’s when I figured out I was so dumb and didn’t know about free airport lounge access the credit cards where providing. I got the card just before my trip to Leh and Ladakh and used the plaza premium lounge at Bangalore Airport for the first time. It was so smooth. Loved it.
After a month I also received four free air tickets from Jet Airways as a welcome gift for that ~28K INR I paid for the lifetime fee of the card.
All I did after getting the card was,
- Moved all my day-to-day transactions to the credit card
- Got 4 add-on card for my family members and asked them to use the credit card instead of debit card where ever possible
Summary of spending by all the card members
After completing the first financial year with the credit card, IndusInd Bank send a summary that’s when I realized I had saved more than 36,418 rupees last year. One Reward point is equal to one rupee as the cash credit. 1 RP = 1 Re INR.
Not only this, after completing one billing year I also got additional 4,000 reward points as one-time milestone benefit.
In my math,
- I paid to join
- 28,320 rupees
- Reward points collected
- 36418+4000 = 40,418
- 28,320-(36,418+4,000) =12,098 INR (cash credit to pay my credit card bills)
- Four Jet Airways flight tickets which I used for around 20K to book a trip to Andaman
- Lifetime no renewal charges
- Lifetime access to VISA Signature airport lounges
- Free add-on cards for my family
- Free BookMyShow tickets every month
- Reward points for adding money to wallet like PayTM and PhonePe
Anyway, as I have used my card to the extent I wanted to, I feel it’s worth spending that joining fee.
What do you think? Please leave your thoughts in the comments section.