Credit Card

• Choose a card that aligns with your lifestyle. Look for benefits in your major spending category like travel, online shopping, offline shopping, etc.
• Identifying the cards which you are eligible for. Beginners or low-income applicants qualify for entry-level cards, while high-net-worth individuals can get premium options.
• Entry-level credit cards come with lower fees whereas mid-range or premium cards generally charge a higher fee. Decide if you would like a low-fee card with basic benefits or pay a higher amount for better benefits.
• Do a cost-benefit analysis, and review t&c on annual fees, rewards capping, redemption options, and values. Ensure you can maximize spend-based benefits before deciding.
• Avoid applying for multiple credit cards at the same time as it may have a negative impact on your credit score.

Pay your balance in full and on time

The most important rule of credit card usage is to pay your balance in full before the due date to avoid interest and protect your credit score. If you cannot make the full payment, try to pay more than the minimum, which can reduce the interest charges.

Convert large purchases into EMIs

If you make a large purchase, consider converting it to EMIs, which usually comes with a lower interest rate than the standard credit card rate. This way, you can manage the entire expense in smaller and more manageable payments over time.

Avoid cash withdrawals with your credit card

Cash advances do not offer an interest-free period; instead, interest is levied as soon as you withdraw cash. These charges can quickly accumulate debt, so use cash withdrawals only as a last resort.

Keep track of your spending

Monitor your spending to stay within your credit limit and avoid building up a difficult-to-manage balance. Check all SMS alerts and your bank statements carefully about credit card transactions. Besides this, you should also check your credit report at regular intervals to notice and rectify any errors.

Do not apply for multiple credit cards at a time

Applying for too many cards at once can make you look credit-hungry and lower your credit score due to multiple hard inquiries. While a single inquiry may not have significant consequences, multiple inquiries within a short period can negatively impact your credit score. Hence, apply only for cards that truly meet your needs and spending habits.

Here are some do’s and don’ts for using your credit cards wisely:

Some recently launched credit cards are:

• HSBC Taj Credit Card: India’s first hotel co-branded credit card in the super-premium segment, with an annual fee of Rs. 1.10 Lakh. Cardholders can earn exclusive privileges not only at Taj properties but also across other hotel chains within the IHCL Group
• Times Black ICICI Bank Credit Card: A premium metal card co-branded with Times Internet Ltd, tailored to meet lifestyle and travel needsft of the premium segment. At an annual fee of Rs. 20,000, this card offers high-end benefits such as unlimited lounge access, milestone benefits worth up to Rs. 70,000, and other exclusive lifestyle benefits
• BOB Tiara Credit Card: An all-rounder credit card designed to cater to various categories such as travel, lifestyle, dining, and more. This card stands out by offering exclusive health and wellness benefits tailored specifically for women. Additionally, it offers travel benefits like unlimited domestic lounge access and a low forex markup fee of 2%
• MakeMyTrip ICICI Credit Card: Suitable fit for travellers who prefer MakeMyTrip for travel bookings. The card offers up to 6% value-back over and above applicable discounts on MakeMyTrip
• KrisFlyer SBI Credit Card Apex: The premium variant of the co-branded credit cards by SBI Card and Singapore Airlines. In comparison to the base variant this card offers 10 KrisFlyer miles for every Rs 200 spent

From earning reward points to building your credit score, credit cards offer a range of benefits that can enhance your financial life. Here are five major benefits of using a credit card:

Convenience and security

Using a credit card is often safer and more convenient than carrying cash, especially for larger purchases. With features like contactless payments, credit cards make transactions more convenient and easy. Additionally, most credit cards offer fraud protection or lost card liability cover, adding an extra layer of security.

Rewards and cashback

With credit cards, you can earn reward points or cashback on every transaction, which can be redeemed for travel bookings, gift vouchers, product purchases, or even statement credits. This allows you to earn decent value back on your everyday spending categories like groceries, dining, fuel, and more.

Building a credit score

Using a credit card responsibly helps build and improve your credit score, as timely payments and proper usage reflect positively on your credit report. A good credit score can make it easier to get future credit at favourable conditions, like loans at lower interest rates, and can also make you eligible for better credit cards.

Interest-free period

Credit cards come with an interest-free period, typically ranging from 20 to 50 days, during which no interest is charged on your purchases. By planning your purchases within this period and paying the bill in full, you can save yourself from high interest charges.

Access to exclusive deals and discounts

Many credit cards offer exclusive discounts, deals, and access to special events, such as dining discounts, travel upgrades, free movie tickets and more. While these benefits shouldn’t be the only factor in choosing a credit card, they can help you get the maximum value back from your credit card.

While the eligibility criteria may differ across issuers and cards, some general requirements are:

• Age: Minimum 18 years
• Credit Score: Preferably 700 and above
• Employment Type: Salaried or Self-employed

To process your credit card application, you need to submit the following proofs:

• Identity & Signature Proof
• Address Proof
• Age Proof
• Income proof

Some common documents are PAN card, Aadhaar card, employee identity card (in case of Government employees), bank statement, salary slips,  rent agreement, or utility bills. For self-employed applicants income proof requirements may vary. You need to submit ITR documents, Form 16, etc.

Note: Document requirements may vary.

Credit card fees and charges can vary based on the card type and issuer. Some charges, like joining or annual fees, are required to keep your card active, while others - such as finance charges, cash withdrawal fees, and late payment fees - apply depending on your card usage. Here’s a look at some common charges:

Particular	Charges
Annual Fee	Varies from card to card
Finance Charges	9% p.a. to 52.86% p.a.
Interest-free Period	Up to 50 days
Cash Advance Charges	0% to 3.5%
Forex Markup Fee	0% to 3.5%