Compare & Apply Best Credit Cards Online

Know All About Credit Cards

• Guide to Credit Card
• Benefits of Credit Cards
• Features of Credit Cards
• How to find the right Credit Card
• Eligibility Criteria for Credit Cards
• Documents to Apply Credit Card
• How to Apply Credit Card Online
• Apply Credit Card on Bankbazaar
• Know more about Credit Card

A Guide to Credit Cards

Although most of us are quite familiar with credit cards and use them on a regular basis, there're many aspects of the cards, most of which are quite basic, about which we are quite ignorant about. This section discusses all such things every credit card user must know.

Why is a Credit Card Important?

• To manage your short-term financial needs - your salary won't be sufficient always.
• To enjoy interest-free credit - You pay interest on a credit card only when the due amount is not repaid on time.
• Ease of use - Ready cash for sudden expenses.
• And the perks that come along - Reward points, discounts,cash-backs, offers air miles and lot more.

Benefits of a Credit Card

Welcome Gift – Many banks offer a welcome gift to new credit card applicants once the card is issued to them. This gift can be in the form of bonus points, gift vouchers, discounts, etc. The welcome gift differs depending on the card and the bank.

Rewards Program – All credit cards generally have a reward program, which allows cardholders to earn reward points on every transaction they make using their cards. The amount of points that cardholders can earn per transaction is fixed and differs from card to card. The points that card members collect can be redeemed for various gifts that are listed in the rewards catalogue of the cards. These gifts can be discounts, product, services, cashback offers, etc. Some credit cards allow card members to redeem their points against air miles and cash as well.

Fuel Surcharge Waiver – Many banks offer fuel surcharge waiver to credit cardholders when they spend specific amount of money on fuel every month. This offer is available on fuel transactions made at all Indian petrol bunks.

Cashback Benefits – There are certain credit cards that offer cashback benefits to the customers. The amount of cashback that will be offered depends on the provider.

Lifestyle Benefits – Cardholders can enjoy various lifestyle benefits on their credit cards. Lifestyle benefits include dining, shopping, golf, wellness, entertainment, etc. privileges.

Travel Benefits – This is one of the major reasons for credit cards being so popular among people. There are some credit cards that offer amazing travel benefits to the customers. Travel benefits include air miles, airport lounge access, travel insurance, airline offers, hotel offers, etc.

Airport Lounge Access – Some credit cards offer complimentary airport lounge access to the cardholders. The offer varies from one bank to another. Some banks put a limit on the number of visits, while some others allow access only to Indian airport lounges.

Exclusive Privileges from Visa/American Express/MasterCard – Visa, MasterCard and American Express are three popular and recognized credit card variants. Depending on the variant of your card, you can enjoy exclusive lifestyle, travel, etc. offers from MasterCard/Visa/American Express.

Add-on Cards – Many banks allow their credit cardholders to apply for add-on cards for their immediate family members. Most card issuers offer add-on cards for free, but some of them limit the amount of add-on cards that one can apply for. Cardholders can enjoy all the privileges of their primary cards on their add-on cards.

Air Miles – Cardholders can collect these miles and redeem them to avail flight tickets and other travel benefits.

Features of a Credit Card

Banks offer amazing features on their credit cards. These features vary depending on the card provider and the type of credit card that people purchase. Some of them are as follows:

Reward Points Program: Most credit cards offer a reward points program, which allows cardholders to earn reward points on every transaction they make using their cards. A few exceptions to it is that fuel transactions, insurance payments, gold or gold jewellery purchases, utility bill payments, cash and EMI transactions are typically not eligible for reward points.

The accrued reward points can be redeemed for various options offered in exclusive rewards catalogues provided by the issuers. However, card members need to earn minimum reward points before going for redemption.

Airport Lounge Access: Complimentary airport lounge access and membership to Priority Pass Program are one of the most common features offered on most credit cards. Though you may not find the features on a basic credit card, most next to basic credit card offers complimentary lounge access with a limited number of visits per year, free membership to airport priority pass programs and others. With such a feature on credit card, members can enjoy free lounge visits to both domestic and international airports.

Fuel Surcharge Waiver: Another common aspect offered on most credit cards is the fuel surcharge waiver facility that waives off the 1% surcharge that is typically charged on all card transactions conducted at petrol stations.

Insurance Coverage: While some premier cards provide a comprehensive insurance policy that provides coverage against air accident, life, lost baggage, lost card, outstanding, etc. On other cards, the cover is limited to a few aspects.

Global Acceptance: Today, most credit cards that are issued in India are international cards and are accepted by various merchants all over the world.

Balance Transfer: Credit cardholders can transfer the outstanding balance of their existing cards issued by one bank to the credit card account of another bank. Doing so helps them in saving money and repaying the amount at a low rate of interest. Banks offer various balance transfer options to their cardholders allowing them to repay the amount on a monthly basis within a tenure of their choice.

EMI Conversion: The feature allows the credit card members to convert their credit card transaction into easy monthly instalments (EMI). They can either choose to convert the total outstanding on their card into EMI, a specific transaction, especially big-ticket purchases into EMI and can also convert merchant transactions into EMI.Generally, these plans have very attractive interest rates and different repayment tenures. The EMI conversion will be done with no other documentation and most of the times instant.

Lifestyle Benefits: By partnering with various merchants, credit card issuers provide attractive discounts and offers on various lifestyle categories including dining, shopping, travel, wellness, entertainment, etc.

Travel Benefits: Frequent travellers can make the best use of the travel credit cards that provide travel-related benefits to the cardholders. Some of the common benefits offered on travel credit cards include air miles accrual and redemption for air tickets, free travel insurance, discount offers on domestic and international flights, complimentary lounge visits, discounts on hotel booking, and concierge services.

Credit Card Eligibility

Wondering if you are eligible for a credit card? Check out the eligibility criteria for credit cards. Do keep in mind though that depending on the type of card you are applying for and the issuing bank, the criteria may differ.

In general, here are the eligibility criteria:

• Nationality: You should be a citizen of India or a non-resident Indian (some banks extend credit cards to NRIs).
• Age: You should be at least 18 years old. In some cases, the minimum age to apply for a credit card is 21 years.
• Employment status: You have to either be salaried or self-employed and have a steady source of income.
• Income: Most banks will require you to meet their minimum income requirement before they approve your card application.
• Credit score: A good CIBIL score, with no history if default goes a long way in making sure that your credit card application is approved.

Documents Required to Apply for a Credit Card

Applicants can submit any one of the ID proof, address proof and income proof documents listed below

How to Find the Right Credit Card

So, how do you go about finding a credit card that is just right for you? Here's a handy list:

• Your spending pattern: Do you spend more on groceries each month and less on dining? Then get a card that rewards your grocery spends. If a major portion of your income goes towards online transactions, get a card that rewards those transactions.
• The reward type: Credit cards offer rewards in terms of cashback (which you can use to offset your bill), rewards points (which can be used to redeem lifestyle, travel, retail, and dining vouchers), and air miles (which can be transferred to your preferred airline's frequent flyer programme and help fund the tickets for your next holiday).
• Fees and charges: Compare the interest rate on different cards and the fees and charges apply. Look for a card whose joining fee and the annual fee you can afford. Also, see if there are any hidden charges.
• Offers on the card: Some cards have great offers and discounts when you use the card to shop on a particular website or when you use it at a particular store. Some offer great dining discounts and others are better suited for travel. Make sure you go through the offers available on the card before making your decision.
• Welcome bonus or gift: To get you to apply for their card, banks offer welcome gifts and bonuses. This could be the latest gadget or bonus points and miles. If you are looking to earn rewards at an accelerated pace, look for a card that offers a considerably large welcome bonus.
• Payment options: Most cards will allow you to make payments via multiple channels. In general, if you tend to forget to make payments by the due date, you should consider having your credit card payments automatically debited from your account.

If you keep these points in mind, getting the right credit card shouldn't be too much of a problem.

Apply for a Credit Card

Gone are the days where you had to trudge to the bank to apply for a credit card. Today, applying for one is extremely simple. All you need is an internet connection. If you have that, you can apply for a credit card online.

How to Apply for Credit Card Online?

Applying for a credit card online is as easy as booking a movie ticket online. Here are the steps:

• Visit the bank's website.
• Take a look at the credit cards offered by the bank.
• If the bank has a comparison tool, use it to see how each card compares to the other.
• Select the credit card that is the right one for you and hit the 'Apply' button.
• Fill in the required details and upload all necessary documents.
• Submit your form.

And that's it. It really is that simple.

Note: Each bank may have a different application procedure. Visit the bank's website for more details regarding how to apply for their credit card online.

Compare & Apply Credit Card on BankBazaar by Following 4 Simple Steps:

Step 1 - Compare credit card offers

Step 2 - Select from the top credit cards offered by leading Indian banks

Step 3 - Check your eligibility by entering a few personal details

Step 4 - Enjoy instant approval online after filling out your application form

Different Types of Credit Cards Offered by Bankbazaar

Not everyone needs a same credit card. While some consider it as a line of credit, a few consider it as an instrument to track their expenses and for some others it's a way to get best deals on every purchase.
Today's customer-centric market has thus come with a solution for all - A credit card for every need. The partnership between card issuers and retailers made the categorization even simpler. From shopping to travel to dining to rewards, there are cards for each category.

Make Life Easier with Lifestyle Credit Cards

A lifestyle credit card is an "All-in-one" credit card that provides privileges across categories. From shopping to travel, rewards to cashback, entertainment to dining, you can enjoy special offers and discounts on most of them.
The Lifestyle Credit Cards typically come with a high annual fee and joining fee, which of course, is worth spending for the privileges offered by the cards. Some Lifestyle Credit Cards also have low or no annual fee and are designed for low-income group individuals.

Shopping Credit Cards:

The name says it all - Shopping Credit Cards are designed for shopaholics or frequent shoppers. While some cards provide deals and discounts for shopping online, others are designed for in-store shopping. Further, there are co-branded Shopping credit cards that provide offers and rewards on specific brands or stores.
Shopping Credit Cards are typically affordable with a starting annual fee of Rs.500. The benefits offered on the cards including the welcome gifts, reward points, deals and discounts, etc., revolve round the shopping category.

Travel Credit Cards – Make your Holidays Budget-friendly:

Mostly providing air travel benefits, the Airline Credit Cards are best suited for frequent travelers. The features and benefits offered on the cards revolve around the air travel. Reward points to air mile conversion, free flight tickets, complimentary airport lounge access, and accelerated rewards on air ticket booking, among others are some common features offered by Travel Credit Cards.
Most of the Travel Credit Cards are co-branded cards offered in collaboration of the card issuer and an Air Carrier or Travel Website. The annual fee of the cards ranges from Rs.500 to Rs.5,000 depending on the benefits they offer.

Reward Credit Cards - Get Rewarded while you Shop:

Rewards Credit Cards offer accelerated rewards on most of the spending categories. Credit Card issuers are providing a wide variety of redemption options ranging from gifts to air miles to cashback. Reward Credit Card also provide welcome rewards, bonus rewards, milestone rewards, etc., in terms of reward points. Most of the cards offer reward points with unlimited validity.

Cashback credit cards (Earn while you spend):

Cashback credit cards offer cash back, cash rebates, and other money-saving benefits on most of the credit card spends. While some care offer cashback in the form of reward points others offer direct cashback to the credit card account which can be used to pay off the card outstanding.

Fuel isn’t Expensive with Fuel Credit Cards:

Partnered with major industry players like Hindustan Petroleum (HP), Bharat Petroleum (BPCL), Indian Oil, etc., credit card issuers are offering Fuel credit cards loaded with partner-specific benefits. Fuel credit cards provide accelerated reward points on fuel spends, fuel surcharge waiver facility, reward points redemption against fuel purchases, and other value back benefits, enabling the users to keep the fuel costs under check.

Things to know before Applying for Credit Card

Credit Card Statement

Credit card statement (or credit card bill) is generated every 30/31 days. The bill generation date depends on the date on which the credit card is first issued, and the same date will be followed for the subsequent months.

Besides the bill amount which is also called the outstanding amount on the card, the statement also provides a detailed history of all the transactions conducted during the billing period.

It also reflects the total credit limit, available credit limit, cash limit, due date and other related information.

The statement is typically mailed to the cardholder’s registered e-mail every month. However, if the total outstanding balance is less than a certain cut-off, say Rs.200, no statement will be generated.

What is Credit Card Limit

Your credit card comes with a pre-assigned credit limit. This limit is the total amount you can charge to your card. For example, if your credit card provider says that the credit limit on your card is Rs.25,000, it means that you can make transactions up to a total of Rs.25,000 using your card.

Each time you swipe your card, the amount is deducted from the total credit limit and each time you pay your bill, your credit limit increases by that amount.

Here's what affects your credit limit:

• Income: Your monthly or annual income will be taken into consideration while determining your credit card limit. Based on the type of credit card you apply for, the income requirement will differ.
• Type of card: Premium cards tend to come with a higher credit limit when compared to entry-level cards.
• Debt-to-income ratio: This ratio compares the total amount of debt you currently have to your total income. The higher the ratio, the more debt you currently have, lower the credit limit, and vice versa.
• Limit on other cards: If you already own a credit card, the credit limit on your new card may be the same amount.
• Credit history: Good credit history means you are financially responsible. As such, the credit limit on your card will be higher when compared to those with poor credit history.

Credit Card Interest Rates

When you don’t pay the total outstanding amount on a credit card by the due date, you’re automatically opting for the revolving credit facility. This means the borrowed amount which is not repaid on time attracts interest or finance charge.

The interest charge is also applicable when you pay only the minimum amount due or anything less than the total amount due.

Further, cash withdrawals attract interest from the date of the transaction till the amount is repaid in full.

The interest rate is charged at a monthly percentage rate or an annual percentage rate (APR) and varies from card to card. The issuer will communicate the rate of interest at the time of card issuance.

Interest rates charged by top banks are listed below.

Zero Interest Credit with Interest-Free Period

When managed properly, a credit card acts as an interest-free credit line. This means you don’t have to pay any interest if the borrowed amount is repaid in the stipulated time.

The period between a transaction date and the credit card bill payment due date is called the ‘Interest-Free Period’.

If you pay the transaction amount on or before the due date, you don’t have to pay any interest, hence the in-between period is termed as Interest-free period or grace period.

The grace period varies for each credit card transaction and the typical period ranges from 30 to 45 days. Transactions carried out at the beginning of your credit card billing cycle would provide you with a longer grace-period.

However, the grace period is not applicable if the previous month's due has not been paid in full.

Also, cash withdrawals using a credit card are not eligible for grace period. Interest on such transactions would be levied from the withdrawal date itself.

The interest-free period offered by top banks is as follows

How to Convert Credit Card Transactions into EMI

Credit card EMI is one of the useful features offered on credit cards. There are various options to use the EMI facility.

1. Opt for EMI while transacting
2. Convert to EMI after the transaction

Credit cardholders with the first option can convert their purchases instantly into EMI while carrying out a transaction. However, the product/service or the retailer should have partnered with the card issuer.

The second option allows the users to convert any of the transactions or the total outstanding on the card into easy monthly installments (EMI).

However, the request for conversion should be made within a specific period from the date of the transaction, say 20-30 days.

While availing the facility, cardholders have the option to choose the repayment period which typically ranges from 3 to 24 months.

Some issuers offer 0% interest while the others charge a low or normal interest rate. Furthermore, a processing fee of 1-2% of the converted amount may also be levied.

Once you opt for the facility, you need to repay the EMI amount every month. The associated principal amount and the interest charge, if applicable, will be added to the minimum amount due on the card.

Credit Card FAQ's (Frequently Asked Questions)

1. What is the difference between a debit and a credit card?

   A debit card draws money from your account immediately when you make a purchase. Whereas a credit card enables you to borrow the money required against credit and you will have to pay the bank when you receive your credit card bill.

2. How do credit cards work?

   A credit card gives you a line of credit and you can use this to make balance transfers, all kinds of purchases, and cash advances. You will have to pay back the amount by the date specified by the bank. When you use a credit card, you have to keep in mind the minimum payment to made every month by the due date.

3. Can I get a credit card online?

   Yes, You can apply for a credit card online, once you go to the website of your preferred bank.

4. How can I get a credit card for the first time?

   If you already have a credit history, you can check your eligibility, choose a card that suits your lifestyle needs and apply for it on Bankbazaar. If you do not have a credit history, you can opt for a secure credit card usually offered against fixed deposits.

5. Is it better to apply online or in person for a credit card?

   It is much easier to apply for a credit card online. If you are applying for a retail credit card, it is better to go in person and apply for the same.

6. What is the minimum salary required to apply for a credit card?

   The minimum salary requirement to be able to have a credit card is different for every bank. The figure varies for salaried and self-employed individuals.

7. Can I get a credit card without a job?

   Even if you do not have a job and have a pretty substantial inflow into your account every month or so, you are eligible for a credit card.

8. Do credit cards require proof of income?

   As your income does not show up on any of the credit reports, many credit card issuers do not verify your income source. However, proof of income could increase the chance of your credit card application being approved.

9. What is the minimum credit score for a credit card?

   A credit score above 650 is ideal to be able to get a credit card

10. Can we get a credit card with bad credit score?

    A credit score between 300 and 650 is considered a bad credit score by most banks. In most cases, banks will not consider this score to be ideal to offer you a credit card. However, if you have a credit score between 550 and 650, it might be considered poor credit. In these situations, if banks deem you as a responsible borrower, you might be qualified for an unsecured credit card.

11. Can I get a credit card in one day?

    Yes, Due to the online application system, your credit card application will be approved in one day. However, you will not get the physical credit card in one day.

12. Which is the best and easiest way to apply for a credit card?

    The best and the easiest way to get a credit card is to apply for it on a platform like Bankbazaar. You can compare the features, benefits, fees, interest rates etc. and then choose a card that best suits your needs. You will also benefit from exclusive offers available only on Bankbazaar. Alternately, you can directly visit the bank’s website to apply for a card.

13. How long does it take to get a credit card approved?

    The banks typically state that they would take 21 days to disburse a credit card. However, depending on the applicant's profile, availability of documents, verification checks, etc., it might also take a little longer than the stipulated time.

14. Can I use my credit card in other countries?

    It depends on your card type. If your credit card is accepted globally, you can use it in other countries as mentioned by your creditor. However, a certain fee known as the foreign transaction fee will be charged for all the purchases made abroad.

15. Do credit cards come with any airport lounge benefits?

    Yes, a lot of credit cards come with access to domestic and international lounges at airports.

16. Are there any benefits of having a credit card?

    Yes, most credit cards come with a reward point system, where you earn a point every time you spend a said amount of money. You can then redeem these points.

17. Do credit cards offer protection against fraud?

    Not all credit cards do, but there are quite a few credit cards that come with fraud liability protection cover.If your card offers the protection, most of the fraudulent transactions that might happen on the card when it's either lost or stolen will be covered. However, you need to intimate about the loss of the card immediately to the respective creditor.

18. Should I pay interest on all the purchases I make using a credit card?

    No, you don't have to pay interest on all the transactions. However, if you're not repaying the due amount within the stipulated time, the unpaid due would attract interest along with all the new transactions, till the due amount is repaid in full.

19. What are the different types of credit cards?

    There are many different kinds of credit cards in India. They are:

    • Secured Credit Cards
    • Business Credit Cards
    • Student Credit Cards
    • Balance Transfer Credit Cards
    • Prepaid Cards
    • Kisan Credit Cards
    • Rewards Credit Cards
20. Should I get a charge card or credit card?

    Having a credit card would mean that you will get small and quick loans while you make your everyday purchases and it offers payment flexibility. If you are a charge cardholder, you will have to pay back the whole amount that you borrow every month on the due date and failure will lead to a heavy fee being charged.

21. How many credit cards should I have?

    The number, one should own is not fixed. It depends on your financial ability and your spending behavior. However, ensure to manage all the cards properly. Use them responsibly, repay the outstanding on time and make sure none of them is affecting your credit score.

22. What is credit card limit?

    This is the maximum amount that one can spend on their card. When you have a high limit for the credit card, it allows you to spend more and this will help your credit scores.

23. What does 'minimum due' mean on a credit card statement?

    The minimum amount due is the minimum amount a credit cardholder needs to pay in case he/she is not able to pay the total outstanding. It is typically 5% of the total outstanding amount on the card. Paying the minimum amount would save you from the late payment fee.

24. If I make a late payment on my credit card, will it affect my credit score?

    It depends on various factors - the number of days late, the number of instances and the amount due. Based on all this your credit card issuer would take a call about whether or not to report the same to the credit agencies. But once reported, it would certainly affect your credit score.

25. Do I need to pay processing fee for a loan against credit card?

    Yes, banks do charge processing fee for loans against credit card. However, you need to pay a very nominal amount as processing fee.

26. Which credit card has highest limit in the world?

    Chase Sapphire Preferred® Card has the highest limit of $100,000.