Compare and Apply
for the Best Credit Cards
modified on: April 24, 2024
Unlock endless possibilities and seize the rewards you deserve with our curated selection of the best credit cards!
Trending Credit Cards 2024
paytm HDFC Credit
Card
Joining Fee
Rs. 500 + GST
Annual Fee
Rs. 500 + GST
Flipkart Axis Bank Credit
Card
Joining Fee
Rs. 500 + applicable taxes
Annual Fee
Rs. 500 + applicable taxes
Swiggy HDFC Bank Credit
Card
Joining Fee
Rs.500 + applicable taxes
Annual Fee
Rs.500+ applicable taxes
Suggested Article – Best Credit Cards in India 2024
What is a Credit Card?
- A credit card is a financial tool that allows cardholders to borrow funds from a financial institution, typically a bank, up to a predetermined credit limit. Unlike debit cards, which are linked directly to a bank account and draw on the available balance, credit cards enable users to make purchases or withdraw cash on credit.
- Every credit card comes with a pre-decided credit limit up to which you can spend. You have to repay the amount spent in a billing period – usually a month – on the due date. You can also pay a minimum portion of the bill and roll over the remainder as credit, for which the bank will charge you interest.
- Credit cards can be used for making both offline and online transactions. They also give you benefits like reward points, cash-back offers and many more.
- With a credit card, you can make purchases even if your bank balance is zero. Of course, you have to pay it back by the due date to avoid a penalty.
How Credit Card Works? explained it in 5 simple steps
1. Swipe (Tap, Insert): You present your card or enter details.
2. Authorization: Merchant checks if you have credit and if it’s valid.
3. Approval: Bank approves if everything’s good.
4. Payment: Bank pays the merchant.
5. Statement and Repayment: You receive a statement and pay by the due date (ideally, in full).
Types of Credit Cards
| Type of Credit Card | Description | Benefits |
|---|---|---|
| Basic Credit Cards | The most common type, with lower credit limits and fewer features. | Easy to qualify for, good for building a credit history. |
| Secured Credit Cards | Requires a security deposit, good for building credit history. | Easier to get than unsecured cards, and helps build credit. |
| Rewards Credit Cards | Earn points or cashback on purchases. | Redeem points for travel, merchandise, or statement credits. |
| Cashback Credit Cards | Get a percentage of your spending back as cash. | Simple to understand benefits, good for everyday purchases. |
| Travel Credit Cards | Earn rewards specifically for travel expenses. | Airport lounge access, travel insurance, reward miles for flights and hotels. |
| Premium Credit Cards | High credit limits, exclusive benefits and concierge services. | Airport lounge access, travel insurance, premium rewards programs, golf memberships etc. |
| Co-branded Credit Cards | It is issued in partnership with a specific airline, retailer, or loyalty program. | Earn bonus rewards for spending with the partnered brand. |
| Business Credit Cards | They are designed for business expenses, often with separate credit lines from personal cards. | Cashback on business purchases, rewards programs for office supplies, travel etc. |
Credit Card Interest Rates in India
| Card Type | Interest Rate Range (p.a.) | APR Range (p.a.) |
|---|---|---|
| Regular Cards | 29.88% – 43.20% | 33.88% – 49.20% |
| Travel Cards | 32.88% – 42.20% | 36.88% – 48.20% |
| Premium Cards | 23.88% – 38.20% | 27.88% – 44.20% |
| Cashback Cards | 34.80% – 44.00% | 38.80% – 50.00% |
| EMI Cards | 12.50% – 36.00% | 16.50% – 40.00% |
Credit Card Eligibility Criteria
| Criteria | General Range | Specifics (Vary by Issuer) |
|---|---|---|
| Age | 18+ | Minimum age (often 21-25 for premium cards); Maximum age (often 65-70) |
| Nationality/Residency | Indian Citizen/Resident | Some cards available to NRIs or foreign nationals |
| Employment Status | Salaried/Self-Employed | Minimum income requirements; Proof of income (salary slips, ITR for self-employed) |
| Minimum Income | Rs. 15,000 – Rs. 25,000 per month | Higher income needed for premium cards; Varies based on card type and city |
| Credit Score | 650+ | Minimum score varies by issuer and card type; Higher score = better card options |
| Existing Credit History | Positive Credit History Preferred | No defaults, delinquencies, or high outstanding debt |
| Other Factors | CIBIL Report, Payment History, Debt-to-Income Ratio | Issuers may consider additional factors for risk assessment |
Documents Required for Credit Card Application
| Document Category | Required for Most Cards | May be Required |
|---|---|---|
| Identity Proof: | ||
| – Passport | ✔ | |
| – PAN Card | ✔ | |
| – Driving License | ✔ | |
| – Aadhaar Card | ✔ | |
| – Voter ID Card | ✔ | |
| Address Proof: | ||
| – Utility Bill (electricity, water, phone) | ✔ | |
| – Bank Statement | ✔ | |
| – Rental Agreement | ✔ | |
| Income Proof: | ||
| – Salary Slips (latest 3 months) | ✔ (Salaried) | |
| – ITR Returns (latest 2 years) | ✔ (Self-Employed) | |
| – Business License/Registration | ✔ (Self-Employed) | |
| Additional Documents: | ||
| – Signature Verification Letter from Bank | Sometimes | |
| – NOC from previous employer (if applicable) | Sometimes |
Credit Card Fees and Charges
| Fee/Charge | Description | Typical Range |
|---|---|---|
| Annual Fee | Yearly charge for card membership. | Rs. 0 – Rs. 5,000+ |
| Renewal Fee | Additional charge after initial year (often waived with certain conditions). | Rs. 0 – Rs. 2,000+ |
| Cash Advance Fee: | Charge for withdrawing cash from an ATM or bank using your credit card. | 2.5% – 5% of transaction amount, minimum Rs. 100 – Rs. 500 |
| Foreign Transaction Fee: | Charge for using your card outside of India. | 1% – 3% of transaction amount |
| Late Payment Fee | Charge for making a payment after the due date. | Rs. 100 – Rs. 500 per instance |
| Over-limit Fee | Charge for exceeding your credit limit. | Rs. 250 – Rs. 500 per instance |
| Minimum Payment Charge | Fee for paying less than the minimum required amount on your statement. | 5% of outstanding balance, minimum Rs. 100 |
| Returned Payment Charge | Fee for a payment that is rejected by your bank. | Rs. 250 – Rs. 500 per instance |
| Card Replacement Fee | Fee for replacing a lost or damaged card. | Rs. 100 – Rs. 500 |
| Other Charges | May include charges for additional cardholder, statement duplication, SMS alerts, etc. | Varies depending on the issuer and service |
Building a Healthy Credit Score
Pay Your Bills on Time: Consistent on-time payments are the most significant factor influencing your credit score. Set up auto-pay or calendar reminders to avoid missed payments.
Maintain a Low Credit Utilization Ratio: This ratio indicates how much of your credit limit you’re using. Ideally, keep it below 30% for a good score.
Don’t Apply for Too Many Cards at Once: Every application triggers a hard inquiry on your credit report, which can temporarily lower your score. Apply strategically.
Smart Spending Habits
Budget and Track Expenses: Create and track your spending to avoid overspending. Many credit card apps offer budgeting tools.
Prioritize Needs Over Wants: Use your credit card for planned purchases you can afford to repay. Avoid impulse buys or exceeding your budget.
Pay More Than the Minimum: The minimum payment only covers a small portion of your balance. Pay more to bring down the principal amount and reduce interest charges.
Useful Links
How to apply for credit cards at Fincover?
- Log onto “Fincover.com”
- Select “Credit Cards” and Click Apply now
- Enter the required information
- Upon providing the information, you can see credit card options from multiple banks
- Compare, analyse and apply for the best card that suits your requirements.
- Submit the necessary documents, and the application will be forwarded to the bank concerned. A representative from the bank will call you soon for documentation.
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