What is credit card?
A credit card is a credit facility to card holders individuals which is provided by banks, that allows customers to borrow some money within a pre-approved credit limit. Having a credit card is a great way to manage your finances during a cash crunch. It allows you to access your funds & making purchases and after you can repay this amount to the banks.
Best part of credit cards are it is widely accepted and offer great financial freedom when it is used judiciously. The credit card limit is set by the card issuer based on factors such as income and credit score, which decides the credit limit also.
The best feature of the credit card is, it is not linked to a bank account. So, whenever you swipe your credit card, the amount will be deducted from your credit card limit and not from your bank account.
There are so many benefits to using a credit card to make purchases. That is not to say that there is no purchase of this money. Anyone who uses it gets the following benefits from using a credit card to pay cash or personal finances:
Building a good credit history
Quick cash source through 'absolute' emergencies
|No additional interest if the bill is paid on time and in full every month|
|There is no liability as consumers are not responsible for immediately reported fraud charges|
|Consumer Protection ($50.00) Report fraudulent charges immediately if your card is stolen or lost|
There are many different lenders in India that offer credit cards and different types of credit cards offered. However, some categories have emerged as popular and common credit card categories. Read below to know about the most popular types of credit cards in India.
Travel credit card
Earn eligible Rider Points for travel credit cards, VIP airport lounge access and discounts on airline, bus and train tickets.
Jet Privilege Indus Bank Voyage Credit Card
Citibank Premier Miles Credit Card
Air India SBI Platinum Credit Card
Shopping credit card
Earn cash back and discount vouchers by shopping in online and offline partner stores with shopping credit cards.
Flipkart Axis Bank Credit Card
HSBC Cash back Credit Card
Click on SBI Bus Credit Card
Cash back credit card
Cash back credit cards offer 5-20% cash back on credit card transactions. These cards usually offer waivers for fuel surcharges, bonuses, reversal of annual fees, etc. Some of the best cash back credit cards in India are:
Axis ACE Bank Credit Card
HDFC Millennia Credit Card
Standard Chartered Super Value Titanium Card
Business credit card
Business credit cards are useful for covering the costs of expanding or growing a business. Some of the best business credit cards in India include:
ICICI Bank Business Advantage Black Credit Card
HDFC Business Money Back Credit Card
Axis Bank My Business Credit Card
Fuel credit card
Lower your overall transportation costs by saving on fuel costs year-round and get waivers on fuel surcharges with a fuel credit card.
Indian Oil City Titanium Credit Card
BPCL SBI Octane Card
HDFC Bharat Cash back Credit Card
Credit Card Eligibility Requirements for Getting a Credit Card in India
- The applicant must not be less than 18 years old.
- The minimum income salary should be between 1 to 3 lakh rupees.
- The applicant must be either salaried or self-employed.
HDFC Bank is one of the India's largest credit providers. HDFC bank offers a large range of credit cards from the basic to premium. Best HDFC Bank Credit Cards listed below
|HDFC Regalia Credit Card|
|HDFC Millennia Credit Card|
|HDFC Money Back Credit Card|
|HDFC Bank Easy EMI Credit Card|
|HDFC Diners Club Privilege Credit Card|
|HDFC Bank Diners Club Rewards Credit Card|
|HDFC Diners Club Black Credit Card|
|HDFC Bank Diners Club Black Credit Card|
|HDFC Titanium Times Credit Card|
|HDFC Platinum Times Credit Card|
State Bank of India
SBI Cards is a joint venture of the State Bank of India and Carlyle Group to introduce credit cards in India. These cards are very useful and come with special benefits on travel, shopping, dining, entertainment, etc. The most common SBI credit cards are-
|Simply SAVE SBI Credit Card|
|Simply CLICK SBI Credit Card|
|Air India SBI Platinum Card|
|Air India signature card|
|Air India SBI Signature Card|
|SBI STYLEUP Contactless Credit Card|
|IRCTC SBI Platinum Card|
|SBI Card ELITE|
|Club Vistara SBI Card|
|Yatra SBI Card|
|SBI Card PRIME|
|BPCL SBI Card|
|Club Vistara SBI Card PRIME|
American Express offers premium credit cards loaded with shopping, travel and entertainment benefits. Some popular credit cards by American Express are-
|American Express Platinum Reserve Credit Card|
|American Express Platinum Travel Credit Card|
|The American Express Membership Rewards Credit Card|
ICICI Bank is among the best credit card companies in India and offers some of the amazing credit card options that not only let the users earn rewards and cash back but also help them make big-ticket purchases and pay in easy installments. Following are some popular credit cards by ICICI Bank-
|ICICI Bank Coral Contactless Card|
|ICICI Platinum Chip Card – Visa|
|MakeMyTrip ICICI Bank Platinum Credit Card|
|MakeMyTrip ICICI Bank Signature Credit Card|
|ICICI Bank Ruby Credit Card|
|ICICI Bank Sapphiro Credit Card|
Citibank credit cards are chosen by many people because of the amazing benefits they provide. Premium reward programs, earning airline miles, and significant fuel savings are among the most popular benefits offered by Citibank credit cards. Here are some of the best cards-
|Citi Premier Miles Credit Card|
|Citibank Cash back Credit Card|
|Citibank Rewards Credit Card|
People prefer Yes Bank credit cards as they offer various benefits such as rewards, lounge access, movie vouchers and waiver for fuel surcharge.
|YES Prosperity Rewards Plus Credit Card|
Credit Cards offers by Other Banks & NBFCs in India:
|Allahabad Bank Credit Card|
|Andhra Bank Credit Card|
|Axis Bank Credit Card|
|Bajaj Finserv Credit Card|
|Bank of Baroda Credit Card|
|Bank of India Credit Card|
|Bank of Maharashtra Credit Card|
|Canara Bank Credit Card|
|Central Bank of India Credit Card|
|Corporation Bank Credit Card|
|DCB Bank Credit Card|
|Dhanlaxmi Bank Credit Card|
|Federal Bank Credit Card|
|HSBC Bank Credit Card|
|IDBI Bank Credit Card|
|Indian Bank Credit Card|
|Jammu and Kashmir Bank Credit Card|
|Karur Vysya Bank Credit Card|
|Kotak Mahindra Bank Credit Card|
|Nainital Bank Credit Card|
|Oriental Bank of Commerce Credit Card|
|Punjab National Bank Credit Card|
|Tamilnad Mercantile Bank Credit Card|
|Tata Capital Credit Card|
|UCO Bank Credit Card|
|Union Bank of India Credit Card|
|Vijaya Bank Credit Card|
Application process of credit card is easy because the banks definitely want businesses and profit. Most credit cards allow online applications—but you have to go always to the bank and apply in person or call an agent over the phone. Card applications are expected to require at least the following personal information.
Name: You are required to provide your legal name.
Social Security Number or Individual Taxpayer Identification Number (ITIN): This is required to make a difficult credit withdrawal and is often the most important factor in determining whether or not you will be approved. There are some credit cards that do not have a credit check, but these are rare exceptions.
Address: You are required to have a valid Indian address.
Income: This will help to determine that how much credit you can get.
Living expenses: This fixed cost with your income will help the bank to determine that how much credit to give you compared to what you can afford to pay.
Things to remember before applying for credit card & Where to Apply?
Generally, the best way to applying for a credit card is through the GRD INDIA website. If you apply online, you should get a quick response. Applying through person or over the phone may increase waiting times.
- Think about your needs
Before the application process, always give a little thought to your goals with the card as well. Do you need a card to establish your credit? Or in earning rewards? Or to pay off some debt? Knowing your goals beforehand will help you narrow down the options. For example, if you want an easy-to-use cash back card, a suitable option might be a card that offers the same flat rate on all purchases.
- Be prepared to strike your balance
Almost all of the companies of credit card —except just a few who have very bad credit—will make a rude inquiry or inquiry about your credit report. It means a banking inquiry will appear on your credit report and potentially negatively affect your score. Making too many transactions and withdrawals in a short amount of time will negatively impact your credit score, as it can signal to lenders that you are looking at too much credit at once.
- Your payment strategy
Make a plan to pay on time. One strategy can make you feel free is "set it and forget it" by setting up automatic payments from your bank account every month. You can also make notes on your calendar before the due date to make sure you don't accidentally miss a single payment.