US Credit Cards For Indians
What are the Credits Cards in USA suitable for Indians to apply as F1, H-1B or L1 visa holder? And Why is it important to have at least 2+ credit cards in USA?
After pursuing your dream and passion to make a career in USA as a student or professional, you have now arrived in USA. Whether you are student pursuing MS or MBA or a professional who have come on H-1B visa or L-1 visa, you realize that you want to get a credit card for local expenses and daily running life.
So what’s the need to apply for credit card early part of your American dream and life? Here are the top five reasons why you should apply credit card:
1. Build Credit History: When you land in this country from India, you don’t have any credit score or credit history. In order to secure an auto (car) loan or mortgage (housing) loan later in your American life, you need to have long history of credit score along with a good to excellent score. Many people realize this only 1-3 years later after they start their career in USA. Getting a credit card is the first step to building a good credit history. This is important in the U.S. because it helps you get loans, rental apartments, car loads, personal loans and other financial services easily.
2. Setting up the Background for Home Mortgage: If you want to buy a house in the future, using a credit card wisely can help. It shows banks that you’re good at managing money, which can help you get a mortgage. Like the first stroke of a brush on a blank canvas, applying for a credit card is the inaugural step towards painting your credit history. It’s essential in the U.S. financial system, where a robust credit history can be the gateway to favorable loan terms and credit opportunities.
3. Being Ready for Financial Emergency: Credit cards can be a safety net for unexpected expenses. If something comes up and you need money right away, a credit card can help you pay without disrupting your budget. A credit card stands as a ready reserve, a financial lifeline that can be drawn upon in emergencies. It ensures that when unforeseen expenses arise, you’re prepared to face them without derailing your financial stability.
4. Getting Cash Back: Each swipe of a credit card can be a brushstroke that adds to a rewarding masterpiece. Cash back rewards are the tangible benefits that accrue from everyday purchases, offering a rebate that enriches your financial palette.
5. Earning Travel Rewards: For those with wanderlust, credit cards can be the compass that points towards rewarding journeys. Travel rewards, ranging from airline miles to hotel stays, transform spending into a conduit for exploring new horizons, making the world a canvas awaiting your footprint.
6. Savings on Groceries and Gas: The mundane yet essential strokes of daily life, such as groceries and gas, are transformed into opportunities for savings. Credit cards tailored to offer rewards on these expenditures ensure that the routine act of refueling or grocery shopping contributes to your canvas of financial rewards.
In the grand scheme of financial strategy for Indians in the USA, a credit card is not merely a tool of transaction but a brush that paints a future of financial freedom and reward. Each swipe, a commitment to building a brighter financial tomorrow.
Why it is important to make your purchase with credit card? A simple answer, cash back which you would otherwise not get if it were paid in cash or debit card equivalent. It can vary from anywhere from 1% to 6% depending on the card and the spending category.
What are the top 3 credit cards should I apply as an Indian in USA?
1. Discover (Cash Back) – Indians in USA
When you apply using the link above, you get $100 as joining bonus after activating and using the card for the first three months. The Discover it® Cash Back card offers several appealing features for cardholders, including:
- 5% Cash Back: Discover cardholders earn 5% cash back on everyday purchases at different places each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. This provides an opportunity to earn significant rewards in rotating categories that can include common spending areas. Please make sure that your activate and wisely use the card to get the 5% rewards. A common one is during October to December is that 5% rewards you get on ECommerce websites like Amazon.com, Walmart.com and Target.com.
- Intro 0% APR Offer for 12-15 months: Discover often provides introductory APR offers for new cardholders, which could include 0% APR on purchases and balance transfers for a specified period. This can be particularly useful for those looking to make a large purchase or transfer a balance from another credit card to save on interest charges.
- No Annual Fee: The Discover it® Cash Back card comes with no annual fee, making it a cost-effective choice for consumers looking to earn cash back rewards without having to pay for the privilege of carrying the card.
- 1% Cash Back on All Other Purchases: For purchases outside of the quarterly bonus categories, cardholders automatically earn 1% cash back. This ensures that all spending on the card earns rewards, regardless of the category.
- Cashback Match: Discover has a unique introductory offer for new cardmembers called Cashback Match. This means that Discover will automatically match all the cash back you’ve earned at the end of your first year with the card. There is no limit to how much is matched, making this an exceptionally valuable offer for the first year.
- Flexibility in Redeeming Cash Back: Discover allows flexibility in how you redeem your cash back. You can use it to pay at Amazon.com checkout, for gift cards or eCertificates, as a credit to your account, or direct deposit into any account. This flexibility makes it easy to use your rewards in a way that best suits your needs.
These features make the Discover it® Cash Back card a competitive option for those looking to maximize their rewards through strategic spending in the card’s rotating bonus categories, alongside enjoying the benefits of cash back match and no annual fee.
An example of Discovery cash back categories from the year 2023, which mostly stays the same for the upcoming years.
5% cash back in rotating categories
It would be rare to find a credit card in the US with no annual fee that earns more than 5% cash back in bonus categories, which for the Discover it® Cash Back have recently included things like gas stations, grocery stores, restaurants and more.
If you max out the 5% rotating quarterly category rewards each year on this card — that is, if you activated and spent up to $1,500 in those categories each quarter all year — you would earn $300 in bonus cash back, plus 1% back on every other purchase. For many shoppers, those lucrative ongoing rewards make this card a retainer.
2. American Express Credit Card – Indians in USA
When should I apply? Recommended to apply after 9 months of US credit history having at least one credit card
American Express Blue Cash Preferred is a very good card for using in Groceries as you get 6% cash back on groceries and streaming services upto $6000 per year. This primarily helps in buying in Indian grocery store
Apply for an American Express Card with this link. You would also get a referral bonus of $250 and more importantly, 0% APR for 12 months which will be very helpful in your initial stages as you encounter high capital expenses for house and family set up, with the need for savings.
Link: https://americanexpress.com/en-us/referral/VALLIPnVnp?xl=cp10a1
Rewards:
- 6% cash back at U.S. supermarkets, on up to $6,000 in spending per year.
- 6% cash back on select U.S. streaming subscriptions.
- 3% cash back at U.S. gas stations.
- 3% cash back on transit.
- 1% cash back on other purchases.
- Terms apply.
Interest rate: 0% intro APR for 12 months on purchases and balance transfers, and then the ongoing APR of 19.24%-29.99% Variable APR.
Advantages and Benefits: The Blue Cash Preferred® Card from American Express carries an annual fee that is justified by its substantial rewards program. If your expenses frequently include substantial amounts at grocery stores, gas stations, or for transit, the fee becomes easily manageable. Additionally, the introductory offer for new members effectively reduces the first year’s costs to zero. Highlighted benefits of the card include:
Superior Grocery Cash Back: Earning an unmatched cash-back percentage on grocery purchases is a standout benefit of this card. It offers 6% cash back at U.S. grocery stores on up to $6,000 in purchases annually. Beyond this limit, the cash back rate adjusts to 1%. Conditions are applied.
Assuming your annual grocery spending reaches $6,000, you could earn $360 in rewards from this category alone. However, it’s important to note that the 6% cash back rate applies strictly to U.S. grocery stores, excluding bulk purchase clubs like Sam’s Club, major retailers such as Target and Walmart, specialty food shops, and other similar stores.
Therefore, when considering this card, it’s vital to think about both your grocery spending and where you shop. The great news is that 6% cash back applies to Indian stores like Patel Brothers, Lotte, India Bazaar and any other Indian grocery stores that you would shop across the US in any state.
Transit Benefits: Earning 3% cash back at U.S. gas stations places this card among the top options for fuel purchases, without any limits on the rewards you can accumulate. This feature is especially beneficial for individuals who drive frequently or own vehicles with high fuel consumption. Yet, there are specific conditions to keep in mind.
The enhanced fuel rewards are exclusively available at stand-alone gas stations. Purchases at gas stations located within warehouse clubs, superstores, or supermarkets are not eligible for the 3% cash back, as per American Express guidelines. Conditions are applied.
To further enhance the value for those who commute, American Express includes an additional 3% cash-back category for transit expenses. This covers a wide array of transportation costs such as rideshares, tolls, taxis, buses, trains, and parking fees. This addition makes the card exceptionally valuable for individuals who frequently use public transportation or other commuting methods besides driving. Conditions are applied.
3. Citi Costco Credit Card – Indians in USA
A Costco store is a large membership-only warehouse club that offers a wide variety of merchandise at bulk quantities and discounted prices. Founded in 1983 in Seattle, Washington, Costco has grown to become one of the largest retailers in the world, operating in several countries. The store’s inventory includes groceries, electronics, appliances, clothing, and more, with an emphasis on providing high-quality products at low prices for its members.
Costco is known for its unique business model that focuses on selling products at high volume and low margins, which is why it requires a membership to shop. The store also offers services such as optical, pharmacy, photo processing, and gas stations in some locations. Costco’s business strategy and membership model have made it a favorite among consumers seeking value and savings on bulk purchases.
First get your Costco gold/executive membership and then apply for Costco Wholesale credit card with Citi Bank. Before applying for this Costco Anywhere Visa Citi credit card, please make sure that there is a Costco nearby the place your live.
Annual fee: $0 for the card, but you have to be a Costco member to apply for this credit card. A baseline Gold Star membership costs $60 per year, while the higher-tier Executive membership is $120 per year.
It requires excellent credit for approval
Simply being a Costco member is not enough to qualify for the Costco Anywhere Visa® Card by Citi. Excellent credit is generally defined as a credit score of 720 or better. Keep in mind, though, that credit scores alone do not guarantee approval for any credit card.
Rewards:
- 4% cash back on gas and EV charging purchases (both at Costco and other gas stations) on up to $7,000 of spending a year, then 1% back.
- 3% cash back on restaurants and most travel purchases.
- 2% cash back at Costco and Costco.com.
- 1% cash back on all other purchases.
No foreign transaction fees
Unlike many other cash-back credit cards, the Costco Anywhere Visa® Card by Citi charges no extra fee on purchases abroad. If you travel internationally, you’ll continue earning rewards without facing a 3% penalty on every purchase you make