The Best Credit Cards for Investment Purposes
Using a credit card to manage your monthly expenses is common, but did you know that it can also support your investment goals? Many credit cards in India today come with benefits like cashback, reward points, and low-interest EMI options that can be useful if you make regular investments online.
These cards can help you earn extra value on spends related to mutual funds, insurance premiums, SIPs, and even stock trading platforms. In this blog, we will talk about the best credit cards for investment purposes and how they can help you save more while managing your money better.
Credit Cards for Investment Purposes: Helping You Earn More on Your Spending
Some credit cards allow you to make payments for investments like SIPs, mutual funds, insurance premiums, and online stock trading. These transactions can give you reward points or cashback depending on the card’s benefits. Let’s look at a few cards that are useful if you’re investing regularly.
HDFC Millennia Credit Card
The HDFC Millennia Credit Card is a popular choice for people who spend on online platforms. If you use investment apps or websites for SIPs or stock purchases, this card gives you cashback that adds up over time.
Key Benefits:
- 5% cashback on Amazon, Flipkart, and other partner brands.
- 1% cashback on other spends, including investment-related platforms.
- Zero lost card liability and fuel surcharge waiver.
- Annual fee: ₹1,000 (reversed on annual spend of ₹1 lakh).
This card is useful for investors who make regular online payments.
SBI SimplyCLICK Credit Card
The SBI SimplyCLICK card is made for online users and can also work well for investment spends. Many online mutual fund or trading platforms are eligible for cashback or reward points with this card.
Key Benefits:
- 1.25% reward rate on online spends.
- 5X rewards on brands like Cleartrip and Apollo.
- Annual fee: ₹499 (reversed on spend of ₹1 lakh).
- Great choice for those investing digitally.
This is one of the best credit cards for investment purposes, especially if you invest using online tools.
Axis Bank ACE Credit Card
The Axis ACE Credit Card is a top pick for people who like getting cashback. It works well for UPI transactions and bill payments, which can include insurance premiums and other financial spends.
Key Benefits:
- 5% cashback on Google Pay bill payments (including investments).
- 2% cashback on other transactions.
- Annual fee: ₹499.
- Useful for users of investment apps that accept credit card payments.
This card is great for those who want to earn cashback while investing monthly.
Amazon Pay ICICI Credit Card
If you’re investing through platforms that accept payments via Amazon Pay or a wallet, this card can help you save more.
Key Benefits:
- 5% cashback for Prime users, 3% for non-Prime.
- Cashback can be used on future purchases.
- No annual or joining fees.
- Great for those who use Amazon or Amazon Pay for investment-related purchases.
The cashback adds up fast, making this one of the smart credit cards for investment purposes.
Standard Chartered Smart Credit Card
This card offers direct cashback on all transactions, including investment-related ones. If you make insurance or SIP payments using this card, you get a flat cashback.
Key Benefits:
- 2% cashback on all online spends.
- 1% cashback on other spends.
- Annual fee: ₹499 (waived on spend of ₹1.2 lakh).
- Simple and easy to use for basic investment payments.
This card is best for those who want a fixed cashback with no extra conditions.
Why Choose Credit Cards for Investment Purposes?
People use credit cards for investment purposes mainly because of the benefits they provide. Let’s take a look at why it makes sense:
- Cashback on Regular Spends: If you’re paying monthly SIPs or insurance premiums, using a credit card that gives cashback means you earn a little every month.
- Reward Points: Cards with reward points help you collect points that can be used for vouchers or discounts.
- Better Money Management: Instead of using your savings directly, you can pay with your credit card and manage your cash flow better.
- EMI Options: Some credit cards allow you to convert large investment-related spends into easy EMIs.
However, not all platforms accept credit cards for investment. It’s important to check if your investment app or provider allows this method before proceeding.
Tips for Using Credit Cards for Investment Purposes
Here are a few simple tips to help you make the most of credit cards for investment purposes:
- Check Platform Acceptance: Make sure your mutual fund platform, SIP provider, or insurance company accepts credit card payments.
- Pay Full Amount on Time: Never delay your credit card payment. Pay the full amount each month to avoid interest charges.
- Choose the Right Card: Pick a card that suits your investment pattern. For example, if you use UPI apps, go for a card that supports UPI cashback.
- Track Your Rewards or Cashback: Don’t let your points or cashback go to waste. Use them regularly.
- Don’t Overuse the Card: Investment is about growing your money, not getting into debt. Use credit cards only if you’re confident in managing the bill every month.
Also Read:- How to Use Credit Cards to Build an International Credit History
Final Thoughts
Using credit cards for investment purposes is a smart way to earn rewards on your financial habits. Whether you are investing in mutual funds, paying SIPs, or buying insurance, certain credit cards can give you cashback, reward points, or EMI options.
The key is to choose the right credit card based on your investment habits. Always pay on time, keep track of your spends, and make sure the investment platforms you use accept credit card payments. By picking the best card and using it wisely, you can make your money work harder for you, without putting in extra effort.
