Credit Card

Want to know which card offers the best rewards? Explore Paisabazaar’s Credit Card Reward Calculator

Paisabazaar Credit Card Reward Calculator is designed to help consumers identify the best credit cards across their diverse spending preferences. Users can compare credit cards with the reward benefits across all lifestyle categories—travel, dining, fuel, groceries, etc. The tool helps users maximize benefits by providing simplified details on:

• Reward earning across spending categories
• List of exclusions from the rewards program, like rent payments, government transactions, and utility bills
• Monthly/quarterly/yearly capping on transactions

The calculator is especially suitable for card users owning multiple credit cards, as they can discover the best value on multiple cards.

Recently Launched Credit Cards

Some recently launched credit cards in 2024 are: 

• MakeMyTrip ICICI Credit Card : Suitable fit for travelers who prefer MakeMyTrip for travel bookings. The card offers up to 6% value-back over and above applicable discounts on MakeMyTrip – know more
• KrisFlyer SBI Credit Card: A co-branded airline credit card with benefits on Singapore airlines. Consumers can earn up to 5 KrisFlyer miles for every Rs. 200 spent and use them for flight ticket bookings at the partnered airline-know more
• 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-know more
• IndianOil RBL Bank XTRA Credit Card: A fuel credit card with benefits on IndianOIL fuel pumps, offering up to 8.5% valueback. Consumers also earn bonus 3,000 fuel points on activation-know more
• IRCTC RBL Bank Credit Card: A low annual fee credit card with benefits on railway travel via co-branded partnership with IRCTC. The card offers rewards on railway spends, 1:1 redemption, complimentary railway lounge access, and UPI-linked credit card benefits-know more

How to Choose the Right Credit Card?

Choosing the right credit card is subjective based on your profile and requirements. To make a smart choice, here are some suggestions:

5 Simple Steps to Apply for a Credit Card Online

You can apply for a credit card with Paisabazaar by following the below-mentioned steps:

Step 1: Enter your mobile number and verify the OTP.
Step 2: Provide personal details like your occupation, monthly income and OTP.
Step 3: Further, choose your preferred lifestyle category from listed options- travel, dining, shopping, etc.
Step 4: Based on your eligibility and preferences, you will be shown pre-qualified offers.
Step 5: To choose the right card, compare features and click on the button ‘Apply Now’.

Eligibility Criteria and Documents Required

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: Salaried or Self-employed
  

List of Documents

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

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:

• 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%

Top Card Issuers Fees & Charges

5 Benefits of Using a Credit Card

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 discount, 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.

Types of Credit Cards in India

Listed below are the different types of credit cards in India to help you find the right one:

Lifetime-Free

Lifetime-free credit cards come without any joining or renewal fees along with relaxed eligibility criteria, making them a suitable choice for new-to-credit individuals. These cards generally provide basic benefits like discounts, cashback, or rewards on your spends.

Rewards

Rewards credit cards allow you to earn reward points on every transaction, which can later be redeemed for various categories such as gift vouchers, products, travel bookings, or even cashback. These cards are well-suited for consumers who prefer the flexibility of redeeming reward points across multiple categories.

Cashback

Cashback credit cards provide a percentage of your spending back as direct cashback/points, which is typically credited to your account or you can redeem them against your statement balance. These cards are ideal for everyday purchases and are well-suited for consumers who prefer direct value back instead of earning and redeeming reward points.

Co-branded

Co-branded credit cards are offered in partnership with a specific brand, like airlines, retail chains, or online platforms, offering accelerated benefits on that brand. Cardholders can earn exclusive benefits, such as accelerated rewards, discounts, and exclusive deals when using the card with the collaborated brand.

Travel

Travel credit cards are designed for frequent flyers and typically offer air miles, airport lounge access, and discounts on flight bookings and hotel stays. Cardholders can earn reward points on every spend, which can be redeemed for travel-related expenses.

Shopping

Shopping credit cards are tailored for individuals who want to earn value back on online or offline shopping. These cards offer benefits like reward points, discounts, and cashback on purchases from popular retail stores and e-commerce brands.

Lounge Access

Lounge access credit cards offer complimentary access to domestic and international airport lounges, providing amenities like free meals, Wi-Fi, and much more. Some premium cards also offer unlimited access to partner lounges worldwide.

Entertainment

Entertainment credit cards cater to those who prefer to earn value back on movies or event ticket bookings. These cards often provide discounts on movie tickets, free movie tickets, ‘buy one, get one free’ deals, complimentary food & beverages, and much more.

Fuel

Fuel credit cards offer accelerated benefits on fuel purchases. These cards typically offer cashback and reward points on fuel spends at partner fuel stations, along with fuel surcharge waiver and basic benefits on other spends.

Super Premium

Super premium credit cards are designed for high-net-worth individuals, offering luxury benefits like concierge services, unlimited complimentary lounge access, a higher reward rate, free golf games, and more. These cards often come with high annual fees and strict eligibility criteria.

Do’s and Don’ts for Credit Cards

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

5 Smart Tips to Manage Your Credit Card Effectively

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 come 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 card 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.

Expert Tips to Maximize Benefits and Avoid Risks

Use your card for essentials, not wants

Think of your credit card as a financial tool for emergencies or essential expenses—not for impulse buys. If you’re tight on cash before payday and need to pay a bill, you can use your card as a short-term solution. Just make sure to repay the balance as quickly as possible to avoid interest.

Maximize benefits by using multiple cards wisely

Having more than one credit card can help you earn better benefits if you know how to leverage them. Different credit cards cater to different needs—some offer better rewards on dining, while others are best for online shopping. To make the most of your cards, use the right credit card for the right purchase.

Keep an eye on the reward expiration date

Usually, credit card reward points come with expiration dates. Set reminders or use apps to track your rewards and ensure you don’t lose out on earned points or cashback. Make sure to redeem the reward points within the given period to maximize your credit card benefits.

Leverage the interest-free period

Credit cards usually come with a 45-day interest-free period. As long as you pay off the balance within this period, no interest charges are accumulated. Hence, make sure to make use of this interest-free period, especially for big ticket purchases.

Don’t miss out on additional perks

Beyond rewards points or cashback, credit cards offer additional benefits that add value. For example, a travel card may offer free lounge access or hotel discounts, but you may need to enroll in these programs to use them. It is important to be aware of such benefits to make the most out of your credit card.

Read Paisabazaar Expert Advice on Credit Cards

With a consumer-centric approach, we try to provide best possible financial solutions to the consumers through our curated products. On our platform, consumers get access to pre-qualified card offers, card comparisons, along with resourceful articles and tips on maximizing rewards and managing spending. With us, you can get valuable insights, trusted guidance and easy application process to find the perfect credit card for your needs.

— Rohit Chhibbar – Chief Business Officer-Credit Cards Head

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FAQs on Credit Card

What is a Credit Card?

A credit card is a type of credit facility, issued through a plastic or a virtual card. Consumers can use it for making transactions within their preset credit limit and repay the spent amount by the due date, which usually falls after every 30-45 days.

How does a Credit Card Work?

Unlike a debit card, where money is directly debited from your bank account when you make a payment, in the case of a credit card, the money is deducted from the assigned credit limit. In a way, you borrow funds from the issuer to make a payment. Based on the total funds used within a month (statement cycle), the issuer then sends a card statement to the user with the total amount due on the card. The total amount due is to be paid by the due date. On bill payment, the amount is added back to the available credit limit.

What are the Benefits of Having a Credit Card?

Some benefits of owning a credit card are increased purchasing power, financial aid in case of emergency, complimentary benefits, rewards, cashback, and lifestyle benefits. Additionally, if used wisely and responsibly, a credit card can also help in improving or building credit score.

What is the Eligibility Criteria for Credit Cards?

The eligibility criteria for a credit card may differ across cards and issuers. But in general, you should be aged above 18, have a good credit score/history, and a stable source of income. The criteria for premium credit cards are more stringent than those on entry-level or mid-range cards.

What Documents are Required to Apply for a Credit Card?

To apply for a credit card, you need to submit age proofs, income proofs, address proofs, signatures, and identification proofs. Some basic documents that suffice are Aadhar card, PAN card, bank statement, salary slips, etc.

What is a Credit Limit and How is it Determined?

A credit limit is the total spend capacity issued on your credit card. It is decided by the issuer based on various factors like credit score, credit history, employment type, monthly salary, TRV (total relationship value), etc. In the case of secured credit cards, it is determined on the basis of the value of the fixed deposit against which it is issued.

Can I Apply for a Credit Card if I have no Credit History?

Credit history is one of the considerations for issuers to issue a credit card. However, users with no credit history can still avail one, based on other parameters like monthly income and credit profile. In such cases, you will most likely be issued an entry-level credit card that comes with easier eligibility requirements. To improve your chance of getting a better card, you can apply with a bank that holds your salary or a current account.

Which is the Best Card to use in India?

The best credit card may vary from one user to another depending on the spend type and lifestyle preferences. But as per the general features, some of the best credit card options across the following categories are:

• Cashback: YES Bank Paisabazaar PaisaSave Credit Card, Cashback SBI Credit Card
• Rewards: HDFC Bank Regalia Gold Credit Card, Axis Bank Select Credit Card
• Travel: Axis Bank ATLAS Credit Card, Axis Bank Horizon Credit Card
• Premium: HDFC Bank Infinia Credit Card, HDFC Bank Diners Club Black Credit Card
• Fuel: IndianOil RBL Bank XTRA Credit Card, SBI BPCL Octane Credit Card

How to Get a Credit Card for the Self-Employed?

To get a credit card as self-employed, you are required to submit your ITR return while applying for a credit card. Additionally, maintaining a good credit score—preferably above 750—and a good repayment history will improve your chances of approval.

What is the APR Rate?

APR (Annual Percentage Rate) is the annual interest charged on an unpaid balance on a credit card. This interest rate is calculated including the nominal interest rate and any additional charges, providing a complete view of the borrowing cost over a year.

How to transfer money from credit card to bank account?

You can transfer money from a credit card to a bank account through various ways, such as net banking or mobile wallets. However, it is not advisable to transfer money from a credit card to a bank account as it incurs high interest charges.

What is the minimum due amount on a credit card?

The minimum due is the minimum amount you have to pay on your credit card bill to avoid late payment fees. This is typically a small percentage of your total outstanding amount. However, it is advisable to pay your credit card bill on time and in full to avoid high interest charges.

How to pay loan EMIs with a credit card?

Some credit card issuers allow you to pay EMIs from your credit card, often through third-party apps or direct payments. However, this may incur additional fees and high interest rates if you don’t repay the card balance in full.

What is a credit card billing cycle and how does it work?

A credit card billing cycle is the time period between two statement dates. The length of the credit card billing cycle usually ranges from 30 to 50 days, depending on the card issuer. At the end of your billing cycle, your statement is generated by your card issuer, and you have until your due date to make the payment.

Can I get a loan against my credit card?

Yes, some credit cards offer a loan facility against your available credit limit, known as a ‘credit card loan.’ This loan typically has a fixed interest rate and repayment term and may not require additional documentation.

How to pay a credit card bill from another credit card?

Paying a credit card bill with another credit card is generally not advised, as it can quickly lead to a cycle of debt. However, in case you want to transfer money from your credit card to an account, you can use net banking or wallets to transfer the funds.

How can I increase my credit score with a credit card?

Improving your credit score with a credit card requires responsible usage. To build a strong credit score, always pay your credit card bills on time and in full. Additionally, keep your credit utilization ratio low to maintain a positive credit profile.

News on Credit Cards