What is credit card?
A credit card is a financial tool provided by banks to individuals, granting them access to a pre-approved line of credit. It allows customers to borrow money within this limit, facilitating purchases and managing finances, particularly during cash shortages. Users can repay the borrowed amount to the bank at a later date. Credit cards offer significant financial flexibility when used responsibly and are widely accepted. The credit limit, determined by factors like income and credit score, dictates the amount available for borrowing. Unlike debit cards, credit cards are not directly linked to a bank account; instead, purchases made are deducted from the credit card limit rather than the bank balance.
Benefits of Using a Credit Card:
Building a good credit history: Responsible use of a credit card helps establish and improve your credit score, making it easier to qualify for loans and favorable interest rates in the future.
Quick cash source for emergencies: In urgent situations, a credit card provides immediate access to funds, offering financial relief when needed most.
Interest-free period: By paying the credit card bill in full and on time each month, users can avoid accruing interest charges, effectively borrowing money at no extra cost.
Fraud protection: Consumers are safeguarded against unauthorized charges, with liability limited to $50 if fraudulent activity is reported promptly after the card is lost or stolen.
Consumer protection: Credit cards offer additional protections for purchases, such as extended warranties and dispute resolution services, providing peace of mind when shopping.
Types of Credit Cards and Their Features:
Credit Card Eligibility Requirements in India:
Age Requirement: Applicants must be at least 18 years old to apply for a credit card.
Minimum Income: The minimum income requirement typically ranges from 1 to 3 lakh rupees annually.
Employment Status: Applicants must be either salaried individuals or self-employed.
Our Credit Card Partners:
HDFC Bank:
- 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):
- 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:
- American Express Platinum Reserve Credit Card
- American Express Platinum Travel Credit Card
- The American Express Membership Rewards Credit Card
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 (CITY BANK):
- Citi Premier Miles Credit Card
- Citibank Cashback Credit Card
- Citibank Rewards Credit Card
YES BANK:
- YES Prosperity Rewards Plus Credit Card
Process For Applying a Credit Card
The credit card application process is designed to be straightforward as banks aim for business and profit. While most credit cards allow online applications, you can also apply in person at the bank or over the phone with an agent. The application typically requires the following personal information:
- Name: Provide your legal name.
- Social Security Number or Individual Taxpayer Identification Number (ITIN): This is crucial for credit checks and approval.
- Address: You must have a valid Indian address.
- Income: Helps determine your credit limit.
- Living expenses: Combined with your income, this determines how much credit you can afford.
Before applying, consider your needs and goals with the card. Determine if you want to establish credit, earn rewards, or pay off debt, as this will help narrow down options. Be prepared for a credit inquiry, as most companies will conduct one, potentially affecting your credit score. To minimize impact, avoid making too many inquiries in a short time. Plan to pay on time by setting up automatic payments or reminders to avoid missing payments.