A credit card is a plastic instrument that helps you buy groceries, accessories, travel & movie tickets, besides offering you 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 would mostly expire within 2-3 years of their accumulation. A few cards, though, come with never-expiring reward points. You can also get rewards for spending a specific amount as mentioned by the credit card issuers. These rewards can come in the form of gift vouchers or the fee waiver, resulting in enhanced savings for you.
You can make purchases online in a few clicks. If you don’t find it comfortable buying online, you can also visit a retail store and swipe the card to buy the stuff you want. You can either go for a straight purchase via credit card or choose the 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 EMI option comes with an interest rate but at a lower rate of 13%-18% per annum.
Credit cards will offer you the following benefits -
There are tons of credit cards available these days, especially as India gears for a full-fledged cashless economy. However, not all cards that you see would help meet your needs. So, you need to figure out your requirements properly before choosing a credit 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 for the customers. 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 cards.
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. You can redeem the miles earned for travel ticket and hotel booking. Don’t wait, just choose any of these below you think is the best for you.
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. You can even get discounts or cashbacks on refilling the vehicle at fuel stations. These top five premium credit cards (fuel) 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 below some of the best dining cards on offer.
So click on the cards, compare them and choose a one for you.
Selecting the best credit card would require a thorough research on the following-
You can thus look 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 - INR 500|
|ICICI Instant Platinum Credit Card|
|Standard Chartered Platinum Rewards 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.
So, you must have selected the one you want after looking at the list of premium credit cards.
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, note 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 equals 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 is INR 5 lakh a year. Income particulars 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 INR 5 lakh as sought. He must earn a minimum gross fixed monthly income of INR 41,667 to gain an approval.
After glancing at the reward points, cashback and other benefits, it's time to 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 for you to look at.
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 get a choice of credit cards to apply for.
Applying online at Wishfin has benefits of its own. Some of these include-
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.
Fast - You can apply for the card in a few minutes by answering or filling relevant personal and professional information.
Instant Approval - If you have submitted the details correctly and meet the eligibility criteria, an instant approval will remain a formality!
Effective Comparison of Offers - You can compare exciting offers in terms of reward points, travel privileges, fees, etc. A good comparison helps you choose the best deal 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 applicable fees & charges. The information is transparent, so you can get a complete detail before applying for the card. This only boosts consumer confidence and has made many applying 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.
You can also visit the nearest branch with the required documents to apply for the credit card. The documents are already mentioned above. So, take note of that. There, you need to ask for the credit card application form. Fill the details asked in the form 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 the application status online in a few minutes. The process involves the following steps.
In case you face a rejection, the reasons for the same would be mentioned too. If you can fill those voids, do so and apply again for an approval.
The statement is a document showing 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, and as a result, the outstanding balance will rise erroneously. 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 pay 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 bill. Choose from any of debit card and internet banking options to pay the dues.
If 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 will 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 shop with discretion and make payment on or before the due date. The plastic instrument 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 show the credit discipline by paying dues on time to get your credit history stronger with time. A strong credit history would make you eligible for a card upgrade or several other exciting deals.
Credit cards come with 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 to the bill. The interest rate 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.
Interest=Outstanding Amount x Rate of Interest x 12 months x number of days/365
Example- Ram Manohar Sharma, an engineer, shops via a 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 INR 10,000|
|May 17||Bought sarees costing INR 6,000|
|May 20||Statement Generation Date (Total Dues - INR 16,000, Minimum Due - INR 800|
|June 13||Made a payment of INR 4,000|
|June 16||Bought a mobile costing INR 11,000|
|June 17||Made a payment of INR 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 would thus bear interest on the outstanding balance. The interest rate charged is 2.49% per month. Let’s calculate the interest now.
Interest on INR 10,000 at 2.49% for 23 days from May 21 to June 12=(10,000 x 2.49% x 12 x 23/365)= INR 188.28
Interest on INR 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)=INR 19.65
Interest on INR 6,000 at 2.49% for 27 days from May 21 to June 16=(6,000 x 2.49% x 12 x 27/365)=INR 132.61
Interest on INR 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)=INR 4.91
Interest on a fresh expenditure of INR 11,000 for 5 days from June 16 to June 20=(3,000 x 2.49% x 12 x 5/365)=INR 12.28
Total Interest=INR 188.28+INR 19.65+INR 132.61+INR 4.91+INR 12.28=INR 357.73
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 INR 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 INR 357.73 and late payment fee of INR 750, the tax to be deducted would equal to INR 199.40.
Below are a few questions that many credit cardholders ask.
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. If the repayment track remains good, the lender can raise the limit of the credit card.
The unbilled amount refers to the spends made after the bill generation date. You can see the unbilled portion in the next billing cycle of a credit card.
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 due only inflates the bill by inviting interest and taxes. The subsequent shopping will further pile on the misery if you continue to pay minimum due only.
Yes, there will be charges on revolving card dues at around 2%-3.5% per month. So, if a bill worth INR 25,000 comes and you pay INR 15,000 only, the remaining INR 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 continuously delay the payment of credit card dues, not only your credit score goes down but even the late payment charges, interest and taxes mount.
Timely payments would constantly raise your CIBIL score, hence 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 CIBIL score may not come down but would negatively impact your credit history. As a result, you may find it tough to get a loan or credit card approval in the future.
Yes, you can, by servicing different kinds of debts responsibly. The effective management of debts raises your creditworthiness, resulting in a pre-approval for credit cards.
Yes, you can by the following ways.
Yes, you can transfer your outstanding amount on one credit card to another credit card with the Balance Transfer Facility. This facility allows you to repay the outstanding balance in easy monthly installments at a lower rate of interest. Almost all the banks and financial institutions provide this facility to their customers.
Yes, you can, provided you have a good CIBIL score and conform to the requirements with respect to age and income as stipulated.
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. This is called as secured credit card.
Yes, if the existing card lacks offers that are there in competing products. You can request for an upgrade at the bank branch and get exciting features added to your card. The upgrade would eliminate the requirement of applying for a fresh one. With that, you won't need 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 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 are offered to spouse, father, mother, son and daughter of the primary cardholders.
Yes,credit cards offer protection through the following.
Immediately dial the 24x7 customer care executive of the concerned lender if and when such an incident takes place. Get the credit card blocked immediately to prevent an unauthorized use of the same. 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