Credit Cards
Credit Card
Credit Cards are a boon for anyone who does not love to carry cash around. Earlier, for every transaction that you made, you had to pay for it in cash. The case is not the same after the invention of plastic money such as credit and debit cards. A credit card allows people to pay for goods and services at merchant stores around the world.
There are many banks and financial institutions in India that offer different types of credit cards such as travel credit card, entertainment credit card, lifestyle credit card, co-branded credit card, etc. Providers generally classify these cards based on the annual income of the cardholders. Different cards offer different rewards so cardholders can choose a card depending on their requirements. For example – if someone shops regularly, a shopping rewards credit card will benefit them more compared to other types of cards.
Super Duper Deal by BankBazaar:
- Apply for a credit card to avail Amazon gift voucher worth Rs.750
- The voucher will be given on approval of the card application
- Cut-off date for approval is Sep 15, 2017
- Offer valid from July 1, 2017 to July 31, 2017
American Express Gold Card:
- No Annual fee for the first year
- This is applicable to special corporates
- The offer is valid till further notice
American Express MakeMyTrip Card:
- No Annual fee for the first year
- This is applicable to special corporates
- The offer is valid till further notice
American Express Platinum Travel Card:
- No Annual fee for the first year
- This is applicable for all the customers
- The offer is valid till further notice
American Express Platinum Reserve Credit Card:
- No Annual fee for the first year
- This is applicable to special corporates
- The offer is valid till further notice
Axis Bank Privilege Credit Card:
- 50% waiver on Joining Fee
- This is applicable for all the customers
- The offer is valid till further notice
HDFC Bank Regalia Card:
- No Annual Fee
- This is applicable for special corporate customers
- The offer is valid till further notice
HDFC Bank Regalia First Card:
- No Annual Fee
- This offer is applicable for special corporate customers
- The offer is valid till further notice
HDFC Bank Diners Premium Card:
- No Annual Fee
- The offer is applicable for special corporate customers
- The offer is valid till further notice
HDFC Bank Diners Rewardz Card:
- No Annual Fee
- The offer is applicable for special corporate customers
- The offer is valid till further notice
HDFC Bank Money Back Card:
- No Annual Fee
- This is applicable for special corporate customers
- The offer is valid till further notice
Standard Chartered Manhattan Platinum Credit Card:
- No Annual fee for the first year
- This is applicable for all the customers
- The offer is valid till further notice
IndusInd Bank Credit Card
- No joining fee charged on spending Rs.25,000 within 3 months of card issue date
- Fees charged will be credited to the card within the 5th month
- The offer is valid till further notice
A credit card is a plastic card issued by a bank that allows you to borrow money from the bank so that you can purchase whatever you want. May it be buying a meal from McDonald’s or a flight ticket to Switzerland, you can use your credit for anything that you like. As long as you repay the amount you borrow before the next billing cycle starts, you will not have pay any excess amount. In case you do not pay the entire amount and decide pay in instalments, you will also have to pay the interest associated with it.
A Credit Card for Every Need
A Credit Card is the perfect way to go cashless. It can easily eliminate your cash crunch. Read on to find out how. You would rather check out our Credit Card offers? Go on…
Food
Eat out every day? With HDFC Bank Platinum Times Credit Card, you get 10 points for every Rs. 150 you spend on dining on weekdays.
Travel
Short of cash for fuel? The IndianOil Citi Platinum Card can help you save over 5% on the fuel cost if you fill fuel at IndianOil outlets.
Paying Utility Bills
Skip that queue for your power bills! Citi Cashback Card gives you 5% cash back on all your utility bill payments made online through Citibank’s Online Bill Pay service.
Buying Groceries
Go grocery shopping online. Get 10 points for every Rs. 100 you spend on grocery shopping with the SBI Simply Save Credit Card. The best part? It applies to all departmental store shopping trips too.
Use both your e-wallet and your Credit Card to save big!
Understanding Credit Card Numbers
There are 16 digits on every credit card. The very first digit present on a credit card signifies its system. 3 stands for travel or entertainment car, 4 stands for Visa card, 5 stands for MasterCard and 6 stands for Discover Card.
The card number structure varies by the system. For example a Diners Club card will start with 38, whereas, the American Express cards will start with 37.
American Express – The third and fourth digit specify the type and currency. Starting from the fifth digit till the eleventh digit is the account number. From the twelfth digit till the fourteenth digit is the card number within the account. The fifteenth digit is a check digit.
Visa – From the second digit till the sixth digit is the bank number. From the seventh digit till the twelfth digit or from the seventh digit till the fifteenth digit is the account number. The thirteenth digit or the sixteenth digit is the check digit.
MasterCard – The second and third digit, the second digit up to the fourth digit, the second digit up to the fifth digit or the second digit up to the sixth digit is the bank number. This depends if the second digit is 1,2,3 or anything other than that. The digits after bank number up to the fifteenth digit are the account number. The sixteenth digit is a check digit.
How to use a credit card?
It is very easy to use a credit card. When banks issue a credit card, they create a revolving account for that card. Once the customers receive their credit cards, they can use it to make purchases on credit. This credit is actually the amount that cardholders have borrowed from the card issuer. They have to repay the outstanding amount at the end of every billing cycle. There is a limit on the amount of credit that one can use and cardholders should make sure they don’t exceed this limit.
To make payments using their credit cards, cardholders have to simply get their cards swiped at merchant stores and authenticate the transaction by entering their PIN number. Some credit cards do not require you to enter a PIN number. If you are using your card to make online payment, make sure the website is a secure one. Enter your credit card details on the checkout section and authenticate the payment by entering the PIN or OTP (One Time Password).
Compare Credit Cards from Top Banks in India:
CitiBank |
Ranges between 37.2% p.a. and 42% p.a. |
Some cards have no joining fee. For others, the fee will be communicated at the time of application. |
IndusInd Bank |
3.83% per month (46% p.a.) |
Up to Rs.1,00,000 (the fee is different for different cards. Rs.1,00,000 is the joining fee for one card, which does not have an annual fee.) |
Kotak Mahindra Bank |
Up to 3.5% per month |
Up to Rs.19,999 |
HDFC Bank |
Up to 3.4% per month (Maximum charge in case of default is 3.5% per month) |
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Axis Bank |
Up to 3.25% per month |
Up to Rs.30,000 |
American Express |
Up to 3.5% per month (Maximum charge in case of default is 3.99% per month) |
N.A. |
State Bank of India |
Up to 3.35% per month |
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Note – The rates/fees and charges may be changed by the banks at any time.
Fees and Charges for Top Credit Cards
| Card Name |
Joining fee* |
Annual fee*(Year 1) |
| Standard Chartered Manhattan Credit Card |
Rs.499 |
Nil |
| SBI Simply Click Credit Card |
Nil |
Rs.499 |
| Standard Chartered Platinum Rewards Credit Card |
Nil |
Rs.399 |
| Citibank Cashback Credit Card |
Nil |
Rs.500 |
| Standard Chartered Super Value Titanium Credit Card |
Nil |
Rs.499 |
| Amex Gold Card |
Nil |
Rs.1,000 |
| Yatra SBI Credit Card |
Nil |
Rs.499
|
| Amex Platinum Travel Credit Card |
Nil |
Rs.3,500
|
| SBI Signature Credit Card |
Nil |
Rs.4,999
|
| IndianOil Citi Platinum Credit Card |
Nil |
If the annual spend is less than Rs.30,000, an annual fee of Rs.1,000 is charged. |
*Taxes will be levied as applicable on these charges. The charges in the table are subject to change based on future revisions implemented by the banks
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:
Accepted Globally – 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, which allows them to repay the amount on a monthly basis within a tenure of their choice.
Instalment Payment Plan – Many banks offer the instalment payment option to their cardholders. This feature allows cardholders to convert their transactions into monthly instalments. Cardholders can choose the tenure for their EMI plan. Generally, these plans have very attractive interest rates. There are some banks that offer 0% instalment payment plans to their customers.
Loans on Credit Cards – Some credit cards offer pre-approved loans to their holders at low interest rates.
Utility Bill Payment – Credit Cards have made it easy and quick for people to pay their utility bills. Using their cards, cardholders can pay all their utility bills online at one go.
Alerts – Credit cardholders receive bill payment reminders via SMS and e-mail from their banks every month, which helps them in not missing out on their monthly payments.
E-statement – Most banks today provide e-statements to their credit cardholders at the end of every billing cycle. Cardholders can access this statement at any time online.
Joining Fees – When customers apply for a credit card, they have to pay a certain amount for enrolment, known as the joining fee. There are certain cards that do not have any joining fee as well.
Annual Fees – Every credit cardholder have to pay a fixed amount to renew their card every year. This amount is called the annual fee or renewal fee. This amount varies depending on the card that a person opts for. Some banks waive this fee for their customers for a period of minimum 1 year as benefit for achieving certain spends milestone.
Lifetime Free Card – There are some banks that offer lifetime fee credit cards, which means cardholders do not have to pay any annual fee for these cards.
Lost Card Liability – Many banks offer lost card liability coverage to their credit cardholders. This feature protects the cardholders from fraudulent transactions that made using their cards after they have reported its loss to their card provider.
Insurance Coverage – Some banks offer insurance protection on certain credit cards they offer. For example – travel insurance, life insurance, etc.
Cash withdrawal facility – Credit cardholders can use their cards to withdraw money from ATMs. Banks charge a small fee for the service and cardholders can instantly avail money in any part of the world.
24x7 Customer Care Service – Banks offer 24x7 customer care service to all their credit card holders. Some banks have a separate helpline number for their cardholders. Cardholders can contact on this number to get any assistance related to their card. For example – They can contact the department to avail concierge services, make card replacement requests, report loss of cards, etc.
Credit Card Bill Payment – Banks allow their credit cardholders to pay their credit card bills online and offline. Cardholders can use NEFT, Internet Banking, Cash, Cheques, etc. facilities to pay their bills.
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 – Certain credit cards such as travel or Airline cards offer Air Miles to their customers. These miles can be JPMiles, Air India Air Miles, etc. Cardholders can collect these miles and redeem them to avail flight tickets and other travel benefits.
Credit Card Grace Period
Most credit cards provide a grace period to the cardholders. Grace period is the time given to credit cardholders to pay off their credit card bills without incurring any interest on the outstanding amount. Grace period is also known as interest free credit period. The time period varies depending on the banks and the type of card. Generally, banks provide a minimum grace period of 20 days to their cardholders, starting from the day they receive their credit card bills. In India, most banks offer a maximum grace period of 50 days.
Top Credit Cards In India
| Citibank |
Travel Rewards – Up to 10 miles per transaction. Up to 10,000 bonus miles a year.
Reward Points – Up to 10 points per transaction.
First Citizen Points – Up to 7 points per transaction.
Turbo Points – Up to 4 points per transaction
Cashback – Up to 5% cashback on transactions.
|
Up to Rs.20,000 |
| IndusInd Bank |
Reward Points – Up to 4 points per transaction.
SpendMiles and PartnerMiles – Up to 3 per transaction.
JP Miles – Up to 75,000 Miles a year.
FlightMiles – Given based on the percentage of the ticket price.
Savings Point – Up to 4 points per transaction.
|
Up to Rs.4,000 |
| Kotak Mahindra Bank |
Reward Points – Up to 10 points per transaction.
Saving Points – Up to 10 points per transaction.
Dining Points – Up to 10 points per transaction.
|
Up to Rs.5,000 |
| HDFC Bank |
Reward Points – Up to 8 points per transaction. More than 2,880 bonus points a year.
JPMiles – Up to 30,000 Bonus Miles. Up to 18 miles per transaction.
JP Tier Point – 1 point on reaching certain milestone.
Amazing Cashback and Discount offers on certain cards.
|
Up to Rs.10,000 |
| Axis Bank |
Reward points – Up to 20 points on spends.
eDGE Reward Points – Up to 20 points on spends.
CV Points – Up to 6 points on spends.
Award Miles – Up to 6 miles on spends.
|
Up to Rs.30,000 |
| American Express |
Membership Points – 1 points for transactions. Up to 11,000 bonus points on joining.
PAYBACK Points – Up to 5 points on transactions.
JP Miles – Up to 16 miles on transactions.
|
Up to Rs.50,000 |
| State Bank of India |
Reward Points – Up to 20 points on transactions. Up to 1,00,000 bonus points a year.
Empower Points – Up to 500 points on achieving milestone.
|
Up to Rs.4,999 |
Note – The above mentioned fees can be changed at any time by the banks. With regards to the rewards section, only the top rewards have been mentioned in the table. The banks offer other rewards besides these on their cards such as discount offers, cashback offers, etc.
Documents Required to Apply for a Credit Card Online
Proof of Identity/ID proof – Applicants can submit one of the following documents as ID proof:
- Passport.
- PAN Card.
- Ration Card.
- Aadhaar Card.
- Voter’s ID Card.
- Driving License.
Proof of Address - Applicants can submit one of the following documents as address proof:
- Telephone Bill.
- Electricity Bill.
- Passport.
- Ration Card.
- Rent Agreement.
- Aadhaar Card.
Proof of Income – All the applicants have to submit their income proof when they apply for a credit card. Salaried individuals have to submit the following documents as proof:
- Salary Certificate.
- Recent Salary slip.
- Employment Letter.
- Self-Employed Individuals have to submit the following documents as proof:
- Certified Financials.
- Recent ITR (Income Tax Returns) Statement.
- Audited Profit and Loss Statement or Balance Sheet.
- Proof of business continuity.
Apart from the above mentioned documents, banks can ask the applicants to submit other documents, if required.
Credit Card Eligibility
The eligibility criteria for credit cards differs depending on the card you are applying for and the bank providing it. Most banks require the applicants to be at least 18 years old and earn a certain amount of income annually to apply for a card.
Why to Apply for a Credit Card Online through BankBazaar?
BankBazaar has made the process of comparing and applying for personal financial products very easy. The website has a user-friendly interface that allows people to navigate easily without getting confused at all. There are many reasons for applying for a credit card through BankBazaar. Some of them are as follows:
Simplifies the application process – BankBazaar has simplified the credit card application process for Indians. Now, you do not have to visit the bank’s outlet or every bank’s website to compare cards and then apply for them. You just have to make a few clicks and you can get the same done online on BankBazaar website in no time.
Compare – Before buying any personal finance products, it is advisable that you compare them. The process of comparing these products can be tedious and a lot of people tend to avoid it, which leads to them buying products that do not benefit them. To solve this problem, BankBazaar introduced a platform where people can compare credit cards offered by different banks online at one place. This not only helps them in making an informed decision, but also in getting the best credit card available in India.
Apply – After comparing the credit cards, you can easily apply for the card you like on BankBazaar’s website itself. You can find the cards you are eligible for easily and then click on the ‘Instant Apply’ button that is present next to the card of your choice. You can then fill up the application form and submit it online and within 30 minutes you will get a response.
Information – On the website of BankBazaar, you can find every single detail about credit cards. Besides this, the site also provides you with the latest credit card news and keeps you updated about the happenings in the Indian financial market.
24x7 Support – Apart from the above, BankBazaar provides 24x7 support to all its customers throughout the year.
Credit Card Application Checklist (Varies with different banks)
- Credit Card Application Form.
- Identity Proof.
- Residence Proof.
- Income Proof.
- Passport Sized Photographs.
- Bank Account Statement.
- Information about Existing Liabilities and Debts.
How to calculate EMI for Credit Cards?
Credit Cardholders can choose to convert certain transactions of theirs into monthly instalments. Card providers allow customers to choose the repayment period for their EMI (Equated Monthly Instalment) plans. Some banks nowadays offer 0% interest instalment payment plans to their credit cardholders. According to this plan, no interest is charged on the monthly instalments, which means cardholders have to pay the principal amount in parts within the tenure they have chosen.
Some banks charge a low interest rate on the EMI plans of credit cards. In this case, the EMI amount comprises of the principal amount and the interest rate. So, every month cardholders are supposed to repay this amount, until they clear off their debt. They can calculate their instalment amount per month before applying for the plan by using an EMI Calculator online. This calculator will help them in figuring out how much they will be paying every month if they opted for a certain EMI plan. To use the EMI calculator, they have to simply enter details like the interest rate, principal amount and the tenure in it.
Banks charge a particular percentage as the interest rate on the borrowed amount and this is applicable if the monthly outstanding amount has not been repaid by the card holder. The interest rate is calculated as the Annual Percentage Rate (APR) and always depends on the type of credit card held. The applicable finance charges are determined on a monthly interest rate percentage and is generally calculated on the average daily balance basis for credit cards. While picking up a credit card, customer can always compare the APRs offered on each card and then choose according to their requirements. Customers who can make regular monthly repayments, can choose credit cards with rewards programs and travel loyalty programs. These type of credit cards tend to have a slightly higher APR. If a customer is looking for flexibility with regards to payments and mainly for purchases, then a credit card with a lower APR should be taken. The APR is always determined based on the applicant’s credit score by any financial institution. All banks offer an interest free period ranging from 20 to 50 days to credit card holders as an additional feature.
Of course, the million dollar question. While the mechanics of using a credit card on a day-to-day basis isn’t too complicated, the associated back-end process associated with a simple card swipe is too technical for a common individual to comprehend. In actuality, the procedure is very simple and safe-
- Purchase over, you hand the credit card to the retailer to pay for your purchase. He swipes, with an accompanying smile, of course.
- The merchant’s Point of Sale (POS) system is connected to the merchant’s bank via a communication link.
- Thanks to the POS system, your details are verified in real-time using the electronic verification system by the merchant’s bank. The verification is with regards to your credentials, validity of the card and availability of sufficient balance to pay for the purchase.
- Post the verification from the merchant’s bank, the details are forwarded to your bank for payment authorization if all the information is in order.
- When the merchant’s bank receives this authorization, it blocks the requisite amount from your credit limit to account for the purchase later on. Next, it generates an approval code that is transmitted to the merchant.
- At the merchant outlet where you stand for the clearance to affect quickly, the retailer receives this code and must key it in to obtain two charge slip copies from the POS system. One of these slips signifies your agreement with the card issuing bank to pay for the current purchase. You sign on this slip and return it back to the retailer. The other copy is yours to take away from this transaction.
- Safe, comprehensive and fast, all of these steps were affected in less than 2 minutes. Neat, right?
Borrowing from a popular axiom, ‘With great power comes great responsibility’, and the same holds very true in the case of credit cards. While a handy financial help, a source of ready cash and a safe and beneficial way to pay for your purchases, the misuse of this facility could be detrimental to your long term financial health. Credit card debt, defaulting on your monthly repayments or drawing up a massive pile of credit card purchases and consequently, a stiff interest rate are things to be constantly aware of. The best way to enjoy your credit card is responsibly and with caution and tolerance. While the temptation may be high to unleash a shopping spree with your brand new credit card, remember, the money you spend is not your own- it must be returned back, with interest and on time!!
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What is a credit card?
A credit card can be used to purchase services and goods on borrowed credit from the bank that has issued the card. Every credit card comes with various privileges and benefits to suit the lifestyle of a customer.
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What are the key benefits that Premium credit cards offer?
Premier credit cards are signature cards from banks which come with flexible spending limits, lifestyle privileges, travel benefits, cashback offers, VIP lounge access, concierge services emergency assistance and complimentary insurance cover. Most premium credit cards can be procured only through invitation.
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How is redemption done on a cashback credit card?
The cashback that is earned by a customer can be automatically got as statement credit from the bank.
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How is a secured credit card issued by a bank?
A secured credit card is generally issued against a fixed deposit, which has been placed by the customer while availing the card. Any minimum amount due or late payment fee that has to be paid will be taken from the deposit. Secured credit cards help customer build a good credit history
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How does a prepaid credit card work?
A prepaid credit card works like a debit card, where the money is taken from an account associated with the card. Users can load cash on the prepaid credit card and can spend up to the available amount limit on the card.
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What are the features of a Business credit card?
Business credit cards come with features like business savings plans, rewards programs, cash advance facility, lounge access and customers can also get their company name embossed on the card.
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How can a customer select the best suited card for himself?
Any customer should select a credit card according to his everyday needs and lifestyle requirements. The privileges offered with a particular credit card should be beneficial and should add value to a customer.
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Can a credit card be procured by any individual in India?
A credit card can be procured by an individual with a regular income and also having a good credit score. Most banks mandate that applicants should be above a certain age limit and should also meet a stipulated income criteria.
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What is the minimum criteria for applying a credit card in India?
The minimum requirement to be met while applying for a credit card would be the age criteria. According to the bank, the age criteria varies from 18 to 21 years for a credit card approval to be got.
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What are the key benefits of the balance transfer option on a credit card?
Customers can easily consolidate multiple credit card balances onto a single card and repay back with flexible tenure options at low interest rates.
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Do banks levy any balance transfer fees on customers choosing this option on their credit cards?
Yes, most banks generally levy a certain percentage as processing fee, when a balance transfer on a credit card is done. The processing fee varies with different banks and customers have to pay this amount with the first monthly instalment.
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How can users check the available credit on their credit cards?
Credit card holders can refer to their monthly statements to get the available credit limit. The other options offered to customers are via SMS banking or internet banking services. All banks provide these facilities, where customers can check the available credit by sending an SMS and receiving an alert or by accessing the statements on their internet banking accounts.
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What are the highlights of the introductory period of a credit card balance transfer?
When a credit card balance transfer is done, every bank offers an interest free introductory period to the credit card holder. This interest free payment period ranges from 3 to 6 months after which the card holder has to repay the instalments with an additional interest rate.
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What are the type of purchases that can be made using a credit card?
A credit card can be used to purchase goods, book travel tickets, perform online transactions and also make reservations for services.
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Do credit card issuers in India offer co-branded credit cards?
Yes, there are various co-branded credit cards available in the market from different card issuers. The privileges available in a co-branded credit card are generally determined by the issuing bank.
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Can customers increase the predetermined credit limits on their credit cards?
Yes, most banks give the option of increasing the credit limit available based on the usage pattern. Sometimes the banks might automatically increase the credit limit after reviewing the customer’s spending pattern. Otherwise if a cardholder wishes to increment the credit limit, then a special request has to be placed with the concerned bank.
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What is a Purchase introductory rate?
The purchase introductory rate is the low interest rate that is offered during the first few months of the credit card usage. This introductory rate is generally given to customers with good credit scores. These rates might be applied only to purchase transactions or balance transfers done by the card holder.
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Do credit cards come with specific cash withdrawal limits?
Yes, most credit cards come with preset cash withdrawal limits, which is generally communicated by the bank to the customer at the time of approval. Banks might also levy additional withdrawal charges on every transaction done at an ATM within India or abroad.
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How does a credit card work as a cashless payment instrument?
A credit card is a payment card issued by a particular bank for customers looking to avail instant credits to easily purchase goods and services without spending a single penny from their pockets. The bank extends a line of credit with which the user borrows money, to be paid to a merchant. The cardholder is required to pay back the borrowed sum of money subsequently to the lender bank along with extra interest rates.
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How do I own a credit card in India?
Customers need to get in touch with an executive from a bank of their choice and submit a filled-in application form with the required documents. The bank will process your application after appraising your credit history and will then approve the new credit card according to your requirements.
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How important is it to understand the interest rate charged by a bank on a particular credit card?
In India, banks charge the highest rate of interests for credit cards, from 36% to 42% per annum. A bank decides the interest rate for a particular customer based on his credit history, financial capability and also depending on the type of card he chooses. Applicants with good credit scores and regular payment patterns get the best deals on their credit card interest rates.
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What are the different payment networks utilized by banks in India for credit card transactions?
Banks in India have tied up with Visa, MasterCard and American Express (AMEX) to process credit card payments, connecting merchant accounts with the acquiring banks.
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What are the eligibility requirements to be fulfilled while acquiring a credit card?
In India, banks generally offer credit cards to individuals above the age of 21 and with a steady monthly income. As part of their verification process, banks do a deep dive into the customer’s credit history and assess previous payment patterns to understand the customer’s financial situation. Only after ensuring that the applicant has the financial capability to repay the expenses incurred using a credit card, will the bank approve the customer’s application.
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Is there a minimum salary criterion required to be met while applying for credit cards in India?
Yes, in India applicants are required to earn a minimum of Rs 75,000 to 1 Lakh per annum, though this criterion varies depending on the type of the card.
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What does APR refer to with respect to a credit card?
Annual Percentage Rate (APR) or the ‘’cost’’ at which a customer takes credit from a bank, is the simple interest rate charged by a bank on expenses incurred on a credit card for a year.
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Do banks levy any charges for late payment of credit card bills?
The best mantra while managing a credit card is to ‘’Pay as and when you can”. Delaying a credit card payment is not a wise option, as banks tend to impose high late payment fees and gradually increase the interest rates charged. The customer would actually end up paying way more than his original purchase amount.
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Do add-on or supplementary cards carry the same features as their primary credit cards?
Add-on cards can be taken for family members of the primary card holder with extra charges anywhere between Rs 125 to Rs 1000. The credit limit of the primary card gets carried over to the new card with similar features. Also customers can get a comprehensive bill with details of both the cards.
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How do global cards help a frequent traveller?
Global credit cards give a customer the leeway of instantly performing cashless transactions from any corner of the globe. Accepted worldwide, global cards give you the flexibility of spending in any foreign currency and later paying your bills in your local currency. A customer can also avoid the hassle of carrying huge amounts of cash or using traveller’s checks.
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What do credit card reward programs offer?
Credit card reward programs have been introduced by lenders to popularize the various cards they offer by rewarding a customer for transacting using their credit card. The cardholder is awarded points as per his expenditure for purchasing goods and services. The accumulated points can later be redeemed by customers for certain discounts and gifts as per the bank’s guidelines.
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What measures are Indian banks required to take to avoid credit card fraud?
The Reserve Bank of India mandates the provision of multiple levels of authentication from banks, for customers using credit cards to make an online purchases. Additionally, customers are advised by banks to use their credit card credentials only in encrypted internet connections to avoid fraudulent transactions.
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How does the cash advance facility help an Indian credit card holder?
Customers can also use their credit cards as ATM cards and withdraw a stipulated amount of cash, preset by the bank as cash advance. Though this feature gives a customer access to instant cash, the bank charges very high interest rates for credit taken using this facility.
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What are the different online and offline modes available to customers for making credit card bill payments?
A. Customers can make outstanding credit card bill payments using the following online modes - Net Banking, NEFT / RTGS Transfers, Debit Cards, Mobile Applications, Standing Instructions, Visa Money Transfer, Bill Desk, etc. Offline modes include cash, cheques, demand drafts, etc.
Important Notes on Credit Card
Use your Credit Card wisely to positively impact your Credit Score. Paying only the minimum due, maxing out your credit limit, skipping payment due to a dispute and multiple rejected applications affect your Credit Score negatively. Avoid these and your Credit Score will thank you for it. Ready? Check out our Credit Card offers!
After the demonetisation drive, a large number of people have started using their Credit Cards. News reports state that Credit Card usage has gone up by 40%, swipes below Rs. 500 have spiked by 65% and those more than Rs. 500 have gone up by 75%. Banks are seeing an increase in Credit Card applications. To avoid the rush, apply today! We have plenty of cards to choose from.
Going overboard with your Credit Card can dent your wallet. We have some advice for you. Follow a strict budget, pay more than the minimum amount due, try balance transfer and clear high-interest debt first - you're set! Take a look at our amazing Credit Card offers.
Did you know that your payment history plays a big role in determining your Credit Score? Every time you miss a payment or delay one, you're putting your Credit Score at risk. The good news, however, is that you can improve your payment history and rebuild your Credit Score over time with the help of a Credit Card. Don't have one? Take a look at our offers.
Four REASONS to go cashless
Cash remains the preferred choice of payment for most of us. However, going cashless is a better option. We’ll tell you why. If you agree, explore our offers right away.
Goodbye, Queue
Tired of queuing just to withdraw money to pay for your food delivery? How about paying online using your Credit Card, Debit Card or any digital wallet the next time?
Ciao, Cheques
Getting paid via cheques is a headache. In a cashless society, you don’t have to go to the bank to deposit the cheque or wait for cheque to be credited. Quick money, it is!
Au Revoir, Risk
When you go cashless, there is less risk as compared to carrying a lot of currency notes in your wallet or bag.
Adios, Fraud
A cashless mechanism can help plug the loopholes in the public systems, prevent black money, smother grey economy and increase tax compliance.
Don’t you think cashless transactions are better than dealing with cash? Get yourself a Credit Card and make the move now.
17th August, 2017
How a Credit Card can boost your confidence
Did you know that a Credit Card can help you bring back your lost confidence? Here’s how to use your card to boost your self-esteem: (If you would rather check out our offers, you know what to do)
It’s Salon Time
Ladies and gentlemen, an image makeover from head to toe can help boost your self-esteem.
New Clothes. Woohoo!
Well, the beautification part is done. Now, it’s time to change your wardrobe. The clothes you wear reveal a lot about yourself.
Pump Some Iron
A positive body image can boost your confidence. Hit the gym, enrol for Zumba classes or kickboxing, or jog in the park.
Hang Out More Often
No more cash worries to stop you from hanging out with people. Go out, enjoy with your friends and let your Credit Card take care of the bill.
All it takes is a Credit Card to save your dying self-esteem. Apply now and get your confidence back.
Credit Card Benefits
You thought a Credit Card was all about using credit and paying bills? Nah! Credit Cards can actually be rewarding. Already know the benefits of using a Credit Card?
Get Rewarded
Credit Cards give you reward points every time you swipe. Redeem these points for goodies! Cards like SBI Simply Save Card give you 2000 points as joining bonus.
Get It All Back
Cashback Credit Cards can give you cash back on selected purchases. With the Kotak Delight Credit Card, get cash back on all dining and movie spends.
It’s Complimentary
You could get fuel surcharge refunds, shopping coupons and more with your Credit Card. Try the Indusind Platinum Aura Edge VISA Card.
Fly Away
Frequent Flyer? Get free flight tickets using your Credit Card! With the Jet Airways American Express Card, you get one-way complimentary Jet Airways Base Fare waived domestic ticket on your first charge.
Get your Credit Card from us and we will make it even more rewarding for you. Go on and explore!
4 Reasons Why Credit Cards Rule
Some say that Credit Cards are the new way of life. Now that may be a little far-fetched but Credit Cards are definitely becoming everybody’s favourite. Here are the reasons why:
Helps Beat the Rising Cost Of Living
Spendthrifts say Credit Cards lead to debt. The rest are using their cards to earn rewards, cashback and special discounts on purchases, cushioning the pressure arising out of the rising cost of living.
Affords You Luxury
Everything is sold at a marked-up price nowadays and paying in full will definitely burn a big hole in your pocket. Smart Credit Card users break their big buys into affordable EMIs.
Best Form of Instant Loan
Instead of borrowing, wise people pay for small, unexpected expenses with their Credit Card. There is a grace period from your time of purchase to the payment due date in which you can pay it all off without any interest.
Keep Track Of Every Penny
A Credit Card statement is a record all your purchases. Study it every month and you’ll be able to plug the leaks before they become too big.
We’ve always said that Credit Cards make excellent financial friends. Get a card, utilise it wisely and you’ll know it yourself. Go on!
Unlock happiness: Get a Credit Card
‘Money can’t buy happiness.’ We beg to differ. With everyone going cashless, it’s time to join the brigade. Get a Credit Card, mate!
Experiences Matter
Spending on experiences rather than material things tends to make you happier. For example, shopping alone versus a hiking trip with friends. What makes you happier?
A Smile Is Worth Millions
Do something to make someone smile. Being the reason for someone else’s happiness is a great feeling. Every little effort counts.
Buy Time and Use It
We’re not talking about a time machine, duh! Take a vacation with the ones who matter to you or go solo. Travelling can make you happy.
Little Joys > Expensive Stuff
Spend more on the simple joys of life. A long drive, your favourite ice cream and someone you love. It beats shopping for expensive stuff.
See? Money can make you happy if you use it right - with the perfect Credit Card, of course!
4 STEPS to Choose the Right Credit Card
Choosing the right Credit Card is as easy as 1-2-3. We tell you how. Or wait! Do you already know how to choose a Credit Card that suits your needs?
Annual Fee
If you hate charges, choose one with zero annual fees. Annual fees can go as high as Rs. 9,999 but you get a bunch of benefits, unlike free cards.
Rewards
Fuel surcharge waiver - check. Cashback - check. Reward points - check. Free vouchers - check. Choose the card that gives you the rewards that you want.
APR
Annual Percentage Rate (APR) is the interest charged on your Credit Card balance. The lower the APR, the better.
Joining Bonus
Who doesn’t love being pampered? Most cards give you vouchers, reward points or free movie/air tickets as joining bonus. Choose one that works for you.
Got wiser? Then, start exploring our many Credit Cards that offer you a world of benefits that you so deserve.
Effective TIPS to use your Credit Card
Using a Credit Card requires a little more than swiping and punching the PIN. It takes some self-control and some thought. Here are some tips to keep in mind. You could take a look at our offers in the meantime.
Make Small Purchases
Once you get a Credit Card do not let it sit idle. Make small purchases, which can be easily repaid. This will help you build a good credit score.
Balance Control
Using up all your credit every month is not ideal financial behaviour. Stick to utilising 30-35 percent of your credit limit. It’ll enhance your Credit Score.
Take It Easy
You can have as many Credit Cards as you like. Just be mindful to leave a gap of a few months between each application. You don’t want to appear desperate, do you?
Guard It with Your Life
Your Credit Card details are precious. Once you get your card, do not flash it around. Keep it securely in your wallet and do not divulge the PIN to anybody.
With these tips, you should be ready to get a Credit Card. Get started, right away.
4 Credit Card T.I.P.S. for 2017
2016 taught us the value of Credit Cards and a cashless economy. Here are some handy Credit Card tips before you get your plastic mate. Already an expert?
Pay Bills in Full
Don’t eye that ‘Minimum Amount Due’ figure on your Credit Card. Go all out and clear the bill in full.
Opt For Balance Transfer
If you’ve got hefty Credit Card dues, think of opting for a Credit Card balance transfer. Move to a new card issuer offering a lower interest rate on dues.
Research Well
Get the right Credit Card for yourself. A Travel Card for the globetrotter, a Cashback Card for the shopaholic. You get it, don’t you? Make the perfect choice and save big.
Direct Debit
No need to fret about payment due dates any more. Give instructions for a direct debit to your bank and automate your Credit Card bill payments. Easy-peasy.
Always remember, good credit habits mean a good Credit Score. Are you set for a Credit Card now?
How a Credit Card can help start a B.U.S.I.N.E.S.S.
Do you know a Credit Card (or two) can help you start a business? Here are some tips:
Buy a Website
Setting up a website is the best way to tell people about your business. Buying a domain is not too expensive and doing so with your Credit Card can earn you reward points.
Set It Up
You might need some furniture and stationary to set up your office, even if it’s a room in your home. Use your Credit Card to purchase the necessary items and earn cashback.
Flier Miles
Get an Airlines Credit Card if your work demands travelling. The joining bonus in the form of flier miles and discounts on hotels will help you lower the operating cost of your business.
Build a Credit Score
You can beef up your Credit Score by paying your dues on time. A good Credit Score will help you get amazing deals on Business and Personal Loans too.
You can explore our range of Credit Cards and get the one that best fits your business requirements.
Credit Card Tips for Beginners
If demonetisation made you get your first Credit Card, you’re probably still wondering how to use it well. Here are some useful tips for all you beginners. Interested in a second?
Stay Within the Budget
Owning a Credit Card doesn’t mean that you go overboard. Make sure you stop swiping as soon as you cross your budget.
Don’t Cut Corners
Your Credit Card bill will give you the option to pay a minimum amount or the full amount. Pay the full amount. Making part payments will attract interest on the unpaid amount.
Stay Within your Means
Banks consider your finances thoroughly before setting your credit limit. Don’t ask for an increase until there is a marked increase in your income.
Stay Cashless
Credit Cards give you the option to withdraw cash from ATMs. Don’t consider it unless it’s an emergency as the interest on withdrawals is high.
Using a Credit Card is very simple. If you still don’t have one, don’t hesitate. Apply now and you’ll learn the advantages as you go along.
The R.I.G.H.T. Credit Card to make your holiday better
Check out these exquisite yet inexpensive honeymoon destinations in India. However, don’t forget to carry your Credit Card for emergencies. If you don’t have one, you can apply right away.
Kudle Beach, Gokarna, Karnataka
Think beaches, a shack where you can’t escape each other and some fantastic coastal food. Affordable, of course! Start by applying for a Yatra SBI Credit Card and get gift vouchers.
Kovalam, Kerala
If Gokarna is too simple for you, you can head to Kovalam - another beach destination. Think Ayurveda-wellness spa, romantic boat ride and some lip-smacking coastal cuisine. Make it all better with the American Express MakeMyTrip Credit Card to get discounts, cashback and gifts.
Nainital, Uttarakhand
A beautiful valley hill station nestled in the state of Uttarakhand is a perfect getaway for nature lovers. It’s a good option to drive to the location and with an Induslnd Bank Platinum Aura Edge Credit Card - you’ll save a great deal on fuel.
Dal Lake, Jammu and Kashmir
Visiting this place is like a dream come true. Many songs and poems have been written about the beauty of the sprawling valleys of J&K. But we suggest you pack the Kotak Delight Credit Card with your luggage to get 10% cash back on your dining and movie spends.
You can visit all these places and many more at an affordable cost. And, with a Credit Card in your pocket, you can get your sweetheart all that she/he wishes during this getaway.
Credit Cards to match your profile
Haven’t got your Credit Card yet because you think it is unsafe? Allow us to change your views. Or are you looking for the one that best matches your profile? Let’s help.
Set Limits
Banks allow you to set geographic limits to use your card. There is no chance of your card getting used in Timbuctoo by a hacker.
On And Off
Banks provide you with apps that you can use to block and unblock your card. It’s as easy as switching on and switching off your television.
Fix a Number
You can fix a daily transaction limit for your Credit Card. This way, you can lend your card to the most irresponsible of your friends without worrying about misuse.
Place Restrictions
You can choose merchant categories that your card can be used at. Great way to curb that shopping impulse that your spouse has, eh?
Now that security is sorted, shall we take a look at your offers? We have plenty of them!
Why Cashback Credit Cards Are Popular
What’s the fuss all about, huh? Let’s show you why.
Reward #1
You can save up to 10% on your regular expenses including phone bills. Pile it on.
Reward #2
Get free movie tickets by swiping your cashback card regularly. More spending = More movies
Reward #3
Get up to Rs. 10,000 off on hotel bookings. Costless travel? Hell, yes!
Reward #4
Most cashback card issuers offer free joining reward points. More points mean more goodies.
Go on, explore our myriad cashback cards and take home one you love.
Shop Better With a Credit Card
Shopping gets better with a Credit Card. You can get rewards, choose to pay in EMIs, get cashback and save money with great discounts. Still looking for a Credit Card?
Raining Rewards
There are so many Credit Cards that give you amazing rewards when you shop. Why do you need cash?
Smart EMIs
Haven’t got enough cash for that purchase? With a Credit Card, you can choose to pay in installments that are easy on your pocket.
Cashback? Yes!
Credit Cards also give you cashback discounts. Are you still waiting to start shopping?
Discounts
If you shop with a Credit Card, get ready to enjoy discounts on online shopping websites. Shop more, save more.
Credit Card Shopping Checklist
Credit Cards are a convenient financial option if you don’t want to carry too much cash with you on that shopping spree. Here are a few factors to consider when you choose your perfect Credit Card.
Interest Rates
Interest on your Credit Card is charged on a yearly basis. It is a fee that you pay for using the card. It’s a good idea to opt for a card with a fixed interest rate that remains the same every month.
Annual Fees
Credit Cards have an annual fee that is charged to the cardholder. Some charges that are included as a part of the annual fee are late payment charges, cash advances, any requests for increased credit limit and balance transfer.
Grace Period
A grace period is the number of days you will get to pay your Credit Card bill after the due date. The grace period is usually 30-50 days to clear any outstanding dues.
Cash Withdrawal
Credit Cards come with an ATM PIN so that you can get cash through your Credit Card from an ATM. But, remember that cash withdrawals on your Credit Card attract high interest rates.
Have you found a Credit Card that suits you yet?
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