Credit Cards - Apply Online, Compare & Choose the Best

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. Credit Cards are a boon for anyone who does not love to carry cash around.

What is a Credit Card

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.

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The launch of credit cards has revolutionised the entire financial world. These small plastic cards may not look important but they have a significant impact on the economy. Due to the convenience offered by this financial tool along with a plethora of other advantages that it provides, more and more individuals are applying for and procuring credit cards. Unlike debit cards, credit cards work on the principle of credit i.e., individuals borrow funds when they swipe their credit card and repay the same through their monthly bills. However if misused, credit cards can result in a serious dent in the individual’s finances as interest rate will be applicable on late payments.

A multitude of banks and financial institutions today provide credit cards to their customers. The number of credit cards that are provided also vary and each of them come with specific benefits and features to suit the needs and requirements of myriad customers. Customers can apply for credit cards through different ways as long as they meet the eligibility requirement set by the credit card provider. These days, customers can easily get a credit card online as well as offline.

Credit Card-Apply Online

With the coming in of the internet, almost everything today has gone digital and so have banks and financial institutions. In case customers wish to apply for a credit card, they can do so online as online credit card application is highly popular and also convenient. In fact, getting online credit card has become even easier. In order to do so, customers will have to follow the steps given below -

1. Individuals will have to visit the official website of the bank and apply credit card online of their choice, as long as they meet the eligibility criteria.
2. Customers can also e-mail the bank if necessary in order to avail a credit card.

Another convenient online credit card application can be made through financial websites such as BankBazaar.com. In order to do so, the following steps will have to be taken -

• All customers will have to do is to visit the BankBazaar website and choose ‘Credit Cards’ which will be on top of the page.
• They will then be taken to another page wherein they will see a list of available credit cards. Customers also have the option to filter the list based on the name of the bank and other criteria.
• They will then have to click on the card that they wish to procure and select the ‘Check Eligibility’ link.
• The provided questions will have to be answered and if the customer meets the required criteria, they click on the ‘Instant Apply’ button, fill up the form and submit it.

Apply for Credit Card Offline

Another option that can be availed is applying for a credit card offline. In order to do so, the steps given below will have to be followed -

• This can be done by visiting a branch of the bank that the customer wants to avail a credit card from.
• Applicants will be asked to fill the necessary forms and in case they meet the required eligibility criteria, they will be able to avail the said credit card.
• Alternatively, you can also approach the banks by calling their support centres which are typically available 24/7 on all days of the week.

Credit Card Fees and Charges

The joining fee and annual fee on credit card are two important things you need to consider while opting for a credit card. Listed below is the joining fee and annual charged on various credit cards.

*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

Compare Credit Cards from Top Banks in India:

Bank	Interest Rate	Joining Fee
State Bank of India	40.2% per annum	Some cards have no joining fee. Depends on the kind of card one is applying for
HDFC Bank	Ranges between 38-42% per annum	Depends on the card one is applying for
American Express	Ranges between 40-47.88% per annum	Rs.199 onwards
IndusInd Bank	Up to 46% per annum	Up to Rs.5,999
CitiBank	Ranges between 38-42% per annum	Some cards have no joining fee. Depends on the kind of card one is applying for
Axis Bank	Up to 39% per annum	Rs.500 onwards
Kotak Mahindra Bank	Up to 39% per annum	Some cards have no joining fee. Depends on the kind of card one is applying for

Note – The rates/fees and charges may be changed by the banks at any time.

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).

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 phone banking Service – Banks offer 24x7 phone banking 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

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.