What Is a Retail Credit Card?
A retail credit card is one that rewards you for spending at retail establishments. There are a variety of retail credit cards to choose from, depending on your spending pattern and the kind of stores that you usually shop at. Some cards offer cash back, reward points, air miles and other benefits. These points can be redeemed for various exciting premium merchandise, flight tickets, discounts, etc. A retail card rewards you for shopping – other cards include fuel cards ( that reward you for fuel spends), lifestyle cards ( that reward you for spending on dining and leisure activities) or airline cards ( that reward you for buying airline tickets).
There are several benefits to using a retail credit card. It also depends on how well you utilize your credit card. It helps you keep track of your retail spends. The credit card statements come in handy to help you track your expenses. It helps you build a credit history, even as you are rewarded for making every day retail purchases.
For instance, HSBC Spencer's Happy Ties Card offers a complimentary welcome voucher from Spencer’s Retail and gives higher reward points for shopping at Spencer’s Retail (since it is a co-branded card). The more you spend, the more you save on your expenses, and the reward points accumulated can be redeemed for exciting vouchers. For every Rs. 100 spent at Spencer’s Retail stores using the HSBC Spencer's Happy Ties Card, you receive up to 14 reward points. For every Rs. 100 spent on other retail spends, dining spends, travel spends etc., you receive up to 4 reward points.
Shopping with HDFC Bank Solitaire card gives you 3 reward points for every Rs. 150 spent. Get 50% more Reward Points on dining and grocery spends. You can redeem your points for gifts/vouchers from the exclusive HDFC reward catalogue. Only retail purchases qualify for reward points.
How to Get the Best Retail Credit Card:
Here are a few suggestions on finding the right retail credit card.
- There is no such thing as a ‘best’ retail credit card. You need to decide which one suits your needs the best.
- Study your spending pattern and which stores you spend the most money at. See if there are any co-branded cards of the store.
- Even if your favourite store does not have a co-branded card with a bank, you can opt for a generic retail credit card that rewards retail spending.
- Research online and check which credit card you qualify for in terms of income and other criteria.
Once you choose a card, you can apply to your desired card issuer along with the mandatory documents, like address and ID proof. You can also apply online with the requisite documents. It can take a maximum f 3 weeks or 21working days for your credit card application to be processed.
Need help? Alternatively, if you think you need help with your credit card application process and advice on eligibility, CreditMantri can guide you and match you with the credit card that suits your needs the best.