A credit card is a plastic instrument that helps you buy groceries, accessories, travel & movie tickets, besides entitling you to the privileges of airport lounge access, 24x7 concierge assistance, etc. The money spent on the card helps you rake in rewards, discounts, cashback, fuel surcharge waivers, and much more. The rewards earned can be redeemed for exclusive gifts, cashback to the credit card account, etc. These rewards can mostly expire within 2-3 years of their accumulation. A very few cards come with never expiring reward points. Credit cards also reward customers on accomplishing a specific amount of spending to be made on a periodical basis. These benefits can be in the form of gift vouchers or the fee waiver, resulting in enhanced savings.
You can use the card at both online and offline stores. The online purchases would require visiting an e-commerce portal, choosing the product of your choice and picking ‘Credit Card’ as the mode of payment from the scroll. If you don’t it comfortable buying online from credit cards, you can also visit a retail store and swipe the card to buy your needs. You can either go for a straight purchase via credit card or opt for credit card EMI option. If you choose the first option and pay the entire due, there won’t be any interest. Else, the credit card provider would charge interest at the rate of 2.50%-3.50% per month, accumulating to 30%-45% annually. The credit card EMI option comes with an interest rate but at a lower rate of 13%-18% per annum.
You can choose credit cards and make most of the following they are likely to offer.
There are tons of credit cards available these days, especially as India gears for a full-fledged cashless economy. Even as the cards are in abundance, not all can suit you. And so, you need to figure out your requirements properly before choosing a card. Credit cards are broadly categorized into the following
These cards offer cashback and rewards on spends. With cashback, the resultant cost of a purchase comes down, resulting in increased savings. Reward points, on the other hand, can be earned on spends. The rewards can be further redeemed for shopping at several online and offline stores. Here’s a list of top five cashback and rewards card.
An avid traveller? Think of travel cards that offer miles on travel spends while also letting you chill at both domestic and international airport lounges. The miles earned can be redeemed for ticket and hotel booking. Don’t wait, just choose from any of these credit cards and apply for the one you think would be the best in your case.
High fuel prices making it difficult for you to drive on the road? Don’t worry, there are fuel credit cards that earn you points on refilling your vehicle. Even a cashback or discount can also be offered using these cards to fill your vehicle tank. These top five fuel cards are up for grabs.
Paying much more on dining outside than you would like to? Well, dining cards are right for you by letting you enjoy your meals at restaurants replete with great ambience while also offering discounts on your spends. Check out some of the best dining cards on offer below.
So click on the cards, compare them and choose a one for you.
When it comes to selecting the best credit card, you need to do a thorough research on offers, benefits, fees, etc. So, don't forget to compare different cards on the following parameters.
You can thus look at the cards below and see which one is the best for you according to above pointers.
|Credit Cards||Reward Points and Other Offers||Fees and Charges|
|SimplySAVE SBI Card|
|BPCL SBI Card|
|HDFC Moneyback card||Annual Fee - ₹500|
|ICICI Instant Platinum Credit Card|
|Standard Chartered Platinum credit card|
|The American Express Gold Card|
|Citibank Cashback Credit Card|
|RBL Platinum Maxima Card|
Note - The annual and joining fees shown above are exclusive of 18% Goods and Services Tax (GST). The tax would be added to these fees.
Note - The eligibility criteria shown above can vary according to the type of credit card offered.
You should first check with the lender whether the income sought for a credit card is on a gross or net basis. Also, be clear that banks generally consider the fixed income for approving the application. The fixed income does not include the incentives and other variables earned by an individual. So, see whether the fixed income is at par with the amount needed to gain an approval. If so, then you can apply. If not, then look for banks that can offer you a credit card based on your fixed income.
Example - Ravi applies for a credit card at a bank which considers gross fixed income to approve or reject the application. The income requirement to get a credit card is ₹5 lakhs a year. Income partioculars of Ravi for 1-year period is shown below.
Keeping this in mind, Ravi's application would be rejected even as the income including incentives is above the amount of 5 lakhs as sought. He must earn a minimum gross fixed monthly income of ₹41,667 to gain an approval on the grounds of income.
After glancing at the reward points, cashback and other benefits, it's time to apply for your favourite credit card, right? You can thus apply for the card online at Wishfin, a neutral marketplace for loans and other financial products. There are three ways by which you can apply here. All three are described below.
This was all about credit cards apply on WhatsApp. Use this one-of-a-kind service to get your favourite cards.
You can even explore chat option to apply. You just need to answer a few questions. As soon as you are done with those, you would be given a choice of credit cards to apply for.
The online application at Wishfin offers the following benefits.
Ease of Use - You can visit the website of Wishfin and choose from any of Whatsapp, chat or even the conventional application form to apply for your favourite card.
Fast - Online application can be made in a matter of few minutes. You just need to answer or fill relevant personal and professional information to complete the application.
Effective Comparison of Offers - You can compare exciting offers in terms of reward points, travel privileges, fees, etc, as they are explained at Wishfin in a comprehensive manner for you to understand things better. A good comparison helps you choose the best deal on offer that would not only match your needs but also let you live with style.
Credible Information Display - The information displayed is researched thoroughly and get updated on a timely basis, hence ensuring a greater degree of reliability.
Transparency in Information - Not only the offers, you can also get to know the fees & charges applicable to a card. The information is transparent and so you get a complete look of the card before applying for it. This only boosts consumer confidence and has made many apply through Wishfin.
Excellent Track Record - Wishfin has enabled the wishes of more than 18 million customers through a rich vein of financial products including credit cards.
The offline application means you need to apply for a credit card at the bank branch. You can thus visit the nearest branch with the required documents authenticating your identity, residence and income. The documents are already mentioned above. So, you can choose from the list of documents. There, you need to ask for the credit card application form. Fill the details asked in the form correctly before submitting the same along with the documents to the branch official. The bank would check the application form and documents thoroughly and give an approval only when the details are verified successfully.
You can check your credit card application status online in a matter of few minutes. The process entails the following steps.
The reasons for rejections would be mentioned. If you can fill those voids, do so and apply again for an approval.
The statement is a document that shows the payment date, the amount due, minimum due, the list of transactions, rewards summary, etc. The late payment charges, if any, would also be shown in the statement. You can check the statement on your email ID as well as get the same on your registered address.
If you check the statement carefully, you can detect some possible errors. The bank can commit an error to raise the outstanding balance. If you find an error, report the same to the bank at the earliest for correction.
You can pay credit card bills from any of the following modes.
You can make a payment of the credit card using the net banking or mobile banking access of the concerned bank.
If you have the net banking or mobile banking access of other banks. you can follow the steps described below to pay your bills.
You can use the payment gateway to pay the dues. Choose from any of debit card and internet banking options to pay the dues.
If at all you face any problem or have a query regarding a credit card, don't hesitate to ring the 24X7 customer care centre of the concerned card issuer. You can find the number on the website of the lender or even on the card issuance letter. The customer care executives would hear your queries patiently and resolve them at the earliest. They may suggest you certain measures to sort out the issue ASAP.
Below is the table showing the customer care numbers of top credit card issuers in India.
|Credit Card Providers||Customer Care Numbers|
|Citibank||18602102484(for resident Indians) and +912249552484(for people outside of India)|
|Standard Chartered Bank||18003451000 or 18003455000, 011-39404444 or 011-66014444 for people residing in Noida and Gurgaon|
Credit cards are one of the best financial instruments to improve your credit history. All you need to do is to shop with discretion and make payment on or before the due date. Credit cards can last forever even as they get renewed every 2-3 years from the date of their issue. It can thus continue building your credit history, much unlike loans that expire after a certain period. You just need to instill the credit discipline by paying dues on time to get your credit history stronger than before. A strong credit history would empower you to go for a card upgrade or make you eligible for several other exciting credit deals.
The best part with a credit card is that you can shop for almost everything that’s available, be it online or offline. Plus, you can enjoy an interest-free period of 20-50 days as extended by banks across India. You can pay the full amount to get relieved of the interest and tax burden. However, if you pay below the total due or minimum due, the interest and taxes would add on to the bill to take something extra out of your pocket. When it comes to interest rate on credit cards, it ranges from 2.5%-3.5% per month on an average. On the overall interest amount, the GST at 18% is getting charged. Previously, the service tax at 15% was levied on the interest amount. Let’s understand how interest gets calculated on the revolving credit card.
Interest=Outstanding Amount x Rate of Interest x 12 months x number of days/365
Example- Ram Manohar Sharma, an engineer, shops via ICICI credit card for purchasing the goodies. Let’s see how his shopping was a month or two ago in the table below.
|May 10||Purchased shoes worth ₹10,000|
|May 17||Bought sarees costing ₹6,000|
|May 20||Statement Generation Date (Total Dues - ₹16,000, Minimum Due - ₹800|
|June 13||Made a payment of ₹4,000|
|June 16||Bought a mobile costing ₹11,000|
|June 17||Made a payment of ₹3,000|
|June 20||Statement Generation Date|
As you can clearly see in the table, Mr. Sharma has refrained from paying the entire bill and thus would bear interest on the outstanding balance. The interest rate charged by ICICI Bank is 2.49% per month. Let’s calculate the interest now.
Interest on ₹10,000 at 2.49% for 23 days from May 21 to June 12=(10,000 x 2.49% x 12 x 23/365)= ₹188.28
Interest on ₹6,000 (10,000-4,000) at 2.49% for 4 days from June 13 to June 16=(6,000 x 2.49% x 12 x 4/365)=₹19.65
Interest on ₹6,000 at 2.49% for 27 days from May 21 to June 16=(6,000 x 2.49% x 12 x 27/365)=₹132.61
Interest on ₹2,000 (6,000-4,000) for 3 days from June 18 to June 20=(2,000 x 2.49% x 12 x 3/365)=₹4.91
Interest on a fresh expenditure of ₹11,000 for 5 days from June 16 to June 20=(3,000 x 2.49% x 12 x 5/365)=₹12.28
Since the payment of the outstanding balance was not made in full, the late payment charges would be deducted. In this case, it will be ₹750 as the total amount due is 23,000 (10,000+6,000+11,000-4,000). Applying 18% GST on interest rate charged amount of ₹357.73 and late payment fee of ₹750, the tax to be deducted would equal to ₹199.40.
Below are a few questions that many cardholders ask.
A credit limit is a point up to which you can shop via a card. Credit card issuers check your income, repayment potential and credit score before deciding the limit.
You can get the limit raised by giving a call to the customer care centre or place a request at the nearest branch of the concerned lender. After finding your repayment track to be smooth for at least 6 months to a year, the lender can raise the limit.
The unbilled amount refers to the spends made after the bill generation date. You can see the unbilled portion in the next billing cycle.
The credit card statement often shows the minimum due, which gets calculated at about 5% of the total outstanding balance in a billing cycle.
No, if you pay the entire outstanding balance on or before the due date of the payment.
No. The payment of minimum only inflates the bill by inviting interest and taxes. The outstanding balance would keep mounting with constant addition of interest and taxes to the bill if you continue to pay the minimum due.
There won't be any charges if you pay the dues on time and in full. Non-adherence to this can bring interest rates, levied at 2%-3.5% per month, to the picture. So, if a bill worth ₹25,000 comes and you pay ₹15,000 only, the remaining ₹10,000 will be added to the next billing cycle. The interest would thus be charged on the unpaid balance. Plus, on the interest amount, the GST at 18% would also be charged.
The payment delay will negatively impact your credit health by lowering your score. If you are continuously delaying the payment of card dues, not only your score goes down but even the late payment charges, interest and taxes mount, making it a rather difficult situation to be in.
Timely payments would lead to a constant rise in your credit score, increasing the scope for a credit limit enhancement. It would also brighten your future credit prospects.
Debt settlement is an agreement you sign with the lender to reduce the debt to an amount you would find it easy to pay. Normally, lenders agree to reduce the interest liability while discussing a debt settlement deal with customers.
Not at all. Your status will be recorded as debt settled, which clearly means your inability to pay off the dues in full. The score will come down and make it tough to get a loan or card approval in the future.
Yes, you can, by servicing different kinds of debts responsibly. It tells you about your ability to manage debts and raises your creditworthiness, resulting in a pre-approval for credit cards.
Yes, you can by the following ways.
If the credit score is found to be low, you can apply for a credit card against the fixed deposit. Just check with the lender about the minimum amount needed to open a fixed deposit.
Yes, you can, provided you have a good credit score and conform to the requirements with respect to age and income stipulated for the card.
Yes, you can get a credit card. However, banks won't feel comfortable offering you an unsecured credit card in the absence of income proof. You can thus apply for a card against the fixed deposit.
Yes, if the existing card lacks offers that are there in other competing products. You can request for an upgrade at the bank branch and get your card added with exciting features. A card upgrade would eliminate the requirement of applying for a fresh one. With that, you are also relieved of the duty to manage different credit cards which can be the case otherwise.
Mobile companies and other firms display brand new products on e-commerce websites to gain more user traction. When you go to shop these products, you would need to choose from several payment modes such as credit card, debit card, internet banking and even EMIs. You can thus choose the EMI option of credit card to pay over a select tenure of 3,6,9,12, 15,18 or 24 months. The interest rate on EMI transactions comes anywhere between 14%-18% per annum, much unlike 30%-40% on revolving dues.
These cards are offered to spouse, father, mother, son and daughter of the primary cardholders.
Yes, credit cards offer protection through the following.
Immediately call the 24x7 customer care executive of the concerned lender on the occurrence of such an incident. Place a request to block your credit card so as to prevent the unauthorized use. You can check the customer care number on the card issuance letter and even on the website of the lender.
If you’ve got a travel bug then these cards might come in handy for your trips
Stop worrying about soaring fuel prices when you’ve got any of these cards in your wallet