Whenever we speak of private banks in India, HDFC Bank is one name that comes to the forefront.
With world-class customer service, HDFC has built its way into gaining the trust of a country that has been obsessed with public sector banks like the State Bank of India and the Punjab National Bank.
Incorporated in 1994, HDFC gained a customer base in India by servicing the elitist section of the country with its premium banking needs.
However, the bank has slowly made its foray into the middle market through its savings and current account options, and more importantly, through its credit card facilities. One such innovative card offering from HDFC is the MoneyBack Credit Card.
We all know the obsession of banks with credit scores when it comes to issuing credit cards, right?
But HDFC seems to have scanned the market really well and decided to come up with a card that does not obsess with a credit score. It rather stresses the income potential of the individual.
This has resulted in the HDFC MoneyBack Credit Card tapping into the huge millennial population of India that is just beginning to grow their credit score.
Add to it a low annual maintenance fee and Rewards to Cashback feature, and you have a ‘gem of a credit card’ made just for Gen Z and the millennial demographics.
|A credit score is a denomination of a person’s credibility as a buyer and loan repayer. Your credibility as a buyer is built on the number of financial accounts you own, how well you spend, whether your bills are paid on time, your loan taking and loan repayment history, and other such factors that determine the health of your credit handling. The credit score values are between 300-850. The higher, the better.
There are many key features of this card, and before we pass our verdict on the desirability score of this card, let us take a look at the benefits, features, and fees of this card.
Benefits of HDFC MoneyBack Credit Card
500 Cash Points, subject to payment of membership fee.
FUEL SURCHARGE BENEFIT
1% fuel surcharge waiver on minimum transaction of Rs. 400 at all fuel stations across India.
The maximum cashback per statement cycle is Rs. 250.
The initial or first-year membership fee of Rs. 500 gets waived on a minimum spend of Rs. 20,000 in the first 3 months after card activation.
From 2nd year onwards, a minimum spends of Rs. 50,000 ensures that your upcoming annual renewal fee of Rs. 500 gets waived off.
A quarterly spend of minimum Rs. 50,000 gets you Rs. 500 gift vouchers every quarter. That makes it a total of Rs. 2000 worth of gift vouchers you can avail in a year.
- You can withdraw money from ATM using your HDFC Moneyback credit card, commonly known as Revolving Credit, as per the credit limit of your card. It is usually 40% of the credit limit of the card and there is an interest rate of 3.6% per month or 43.2 % annually. The new interest rate is effective from September 2020.
- You can avail up to 40% or more discounts on premium dining outlets (in select cities) under the HDFC Good Food Trail Dining Program.
- Upon losing your credit card accidentally, and reporting it immediately to the HDFC call center, there is no liability on any fraudulent transactions.
- There is a 50 days interest-free period on the HDFC MoneyBack Credit Card. The interest-free period starts from the date of purchase.
- You can also convert your bigger purchases into monthly installments using the Smart EMI option. The Smart EMI interest rate is 1% of the purchase amount or Rs. 350 (excluding tax), whichever is higher.
Special Mention: Contactless Payment (available on cards with the contactless logo on them)
The HDFC Credit Card enables contactless payment for select customers upon request for transactions up to Rs. 1999 at a time. The contactless version of the card can be used at retail outlets that have contactless payment-enabled. Definitely a plus during COVID times.
The Rewards point structure of the HDFC MoneyBack Credit Card is pretty simple, and straightforward. It has only a few exclusions.
2X Reward Points
On online spending, you receive 2X reward points or 4 reward points on every Rs. 150 spent.
1X Reward Point
You earn 1X reward points or 2 reward points on every Rs. 150 spent offline.
Reward points are valid for 2 years from the date of accumulation. It is advisable to use reward points within 2 years’ time.
Reward points can be redeemed for :
- Monthly statement balance at a 20 paise per reward point rate. Accumulated reward points should be 2500 RP for monthly statement redemption.
- Flight and hotel bookings. The reward redemption rate is 1 Reward = 25 paise or 100 Reward points = Rs. 25 for flight and hotel bookings.
100 Reward Points is equal to Rs. 20 i.e. 1 Reward Point is valued at 20 paise.
For Hotel and Flight bookings, the value of the Reward points is higher – 1 Reward point equals 25 paise or 100 Reward points equals Rs. 25.
|Cashback VS Rewards
A Rewards Credit Card is one where the points or rewards you earn can be accumulated and used to redeem items from the Rewards Catalogue. A Rewards Credit Card usually has more Rewards point value than Cashback cards.
A Cashback Credit Card offers redeemable cash against the points earned on purchases. A Cashback Credit Card offers more flexibility in terms of where you intend to spend the points, or if you want them adjusted to pay your monthly statement.
Another popular type is the Miles Card where you are rewarded with miles for spending on the card. The Miles Credit Card is most suitable for frequent flyer.
Fees & Charges
500 + taxes
ANNUAL FEE/RENEWAL FEE
500, waived off on annual spend of Rs. 50,000.
ATM WITHDRAWAL CHARGES
5% of the amount withdrawn or Rs. 500, whichever is higher.
25 for cheque value up to Rs. 500.
Rs. 50 for cheque value above Rs. 5000.
RE-ISSUANCE of LOST, STOLEN OR DAMAGED CARD
STATEMENT RETRIEVAL CHARGE
10 for each duplicate physical statement (from September 2020 onward).
LATE PAYMENT CHARGES
The late payment charges, post the 50 days interest-free period are as follows (effective September 2020) :
|Late Payment Charges
|< Rs. 100
|Rs. 100 – Rs. 500
|Rs. 501 – Rs. 5,000
|Rs. 5,001 – Rs. 10,000
|Rs. 10,001 – Rs. 25,000
|Rs. 25,001 – Rs. 50,000
|More than Rs. 50,000
OVER LIMIT FEE
5 % of the over-limit amount or Rs. 500, whichever is higher.
Over Limit Fee
An over-limit in credit card spending is reached when you make a transaction beyond your credit limit. Say, your credit limit is Rs. 50,000, but your total expenditure on the card for a given monthly statement cycle is Rs. 55,000. This means that you have an over-limit of Rs. 5000, and will accrue an interest rate on the over-limit amount.
The Cards that do not facilitate over-limit decline transactions beyond the credit limit.
1% of the transaction amount plus taxes.
|Looking for a Credit Card that gives maximum benefits on online shopping? Check out the SBI SimplyCLICK Credit Card review.
Eligibility for HDFC MoneyBack Credit Card
21 – 60 years
For Salaried individuals : 3 lakh per annum or Rs. 25,000 monthly income.
For Self-Employed/Entrepreneurs: Rs. 6 lakh per annum (as per Income Tax Return document)
PLACE OF RESIDENCE
Metro Cities and Bigger Towns and Townships are preferred. Since the bank has a wide network in 2,768 cities all over India, the MoneyBack Credit card has a wider reach than most other cards from private banks.
HDFC gives preference to its account holders when it comes to issuing credit cards. Also, as specified right in the beginning, the HDFC MoneyBack Credit Card is not very credit score specific.
Therefore, even if you do not have a substantial credit history regarding owning a credit card, you can still apply for the card directly on the HDFC website.
Our Verdict on the HDFC MoneyBack Credit Card
We recommend the HDFC MoneyBack Credit Card if you :
- Are considering getting a credit card for yourself for the first time
- Are not a fan of bank reward catalog portals and prefer Cashback when it comes to savings on your online and offline spend
- Do not have frequent flying needs
- Have limited vehicle fuel consumption per month
- You are interested in growing your credit score so you can get a card with better features.
If you fulfill any or some or even all of the conditions listed above, this card would suit you to the core.
We know that the suitability of a card differs from person to person even with the same demographics of age, location, or even paycheck.
So, before you consider getting a credit card, it is always advisable to check with your specific card needs, and which areas of your spending you want your credit card to take care of.