#Credit #card #holder
Credit card holder
Credit cards are issued by banks and financial institutions allowing the user to make purchases and pay for various services by borrowing money from them. Apart from providing the much needed alternative to cash, credit cards also offer you benefits in the form of rewards, cashbacks, interest-free period and much more. The demand for credit cards in the Indian market is growing rapidly and hence leading banks have launched plenty of credit card options for the customers to choose from.
There are a host of credit cards available in the market having different features and benefits linked to them. The most popular ones are travel credit cards, shopping credit cards, entertainment credit cards, fuel credit cards, co-branded credit cards, cashback credit cards, lifetime free credit cards, premium credit cards and business credit cards.
Compare Best Credit Cards in India
|Credit Card||Annual Fee||Key Features|
|HSBC Visa Platinum Credit Card||Nil|
|HDFC Bank Regalia Credit Card||₹ 2,500||Complimentary Priority Pass and Taj Epicure Plus Membership.|
|The American Express Membership Rewards®Credit Card||₹ 1500||Earn 1,000 bonus membership reward points on using card 4 times per month on transaction worth Rs.1,000 each.|
|SBI Card PRIME||₹ 2999||Welcome e-gift voucher worth ₹ 3,000 redeemable at Bata/Hush Puppies, Marks and Spencer, Pantaloons, Shoppers Stop and Yatra.com|
|ICICI Bank Platinum Chip Credit Card||Nil||1% fuel surcharge waiver on fuel transactions of maximum ₹ 4,000 at HPCL pumps.|
|American Express Platinum Reserve Credit Card||₹ 5000||Up to ₹ 10,000 cash back on bookings made through MakeMyTrip website.|
|HDFC Regalia First Credit Card||₹ 1000||Complimentary Priority Pass Membership giving access to 850+ international airport lounges.|
|Citi PremierMiles® Credit Card||₹ 3000||10,000 Miles on first spend of ₹ 1,000 or more made within 60 days of card issuance.|
|Standard Chartered Manhattan Platinum Credit Card||₹ 999||5% direct cash back on departmental stores and supermarkets spends.|
Apply for a Credit Card
Due to the rising demand for credit cards in the market, banks and financial institutions have made credit card application quite easy for the customers. You can apply for credit cards both online and offline.
Credit Card- Apply Online
Nowadays, it is very easy to avail a credit card if you meet the eligibility criteria. You do not need to visit your bank branch for the purpose; credit card application can be made online. You can visit the web portal of the bank and apply for a credit card by filling out some basic details like name, email ID, contact number, income, address, etc. You will get a call from a credit card representative of the bank who will guide you through the process. A representative will also come to collect your documents at your doorstep.
Credit Card- Apply Offline
People who are not comfortable with online methods of credit card application can visit the bank branch directly to apply for the same. Just visit the branch and communicate about the type of credit card you need. The representative will tell you about the credit cards that match your needs. Then, you will have to fill the credit card application form and provide some KYC documents such as identity proof, address proof, etc. You will also be required to provide proof of income and two passport sized photographs.
Compare and Apply for Credit Cards at Paisabazaar
For a digitally advanced generation, credit cards mean more than just plastic money. You can earn rewards and cashbacks, travel deals, shopping benefits, dining discounts and the choicest perks. With so many cards available in the market, it is easy to get confused in a sea of options.
Paisabazaar.com is where you can find the right credit card in just 3 simple steps.
Step 1- Compare Offers
Find top credit cards by leading banks. Compare offers and fees on different cards to find one that suits your budget and lifestyle.
Step 2- Check Eligibility
Enter your personal information along with the details of the existing credit cards that you hold to check whether you are eligible.
Step 3- e-Approval
Fill out a basic form to get instant approval on your application.
Credit cards are simply a form of loan. The financial institution or the bank which is issuing these credit cards is normally extending its customers a line of credit i.e. money which an individual may not possess. In exchange for this, the customer or the card holder is required to pay the issuer the amount in monthly instalments with interest along with an annual fee for the card.
Credit card debts are normally unsecured as for any normal credit card an individual is not required to give any collateral or mortgage an asset to receive these funds. The financial institution or the bank which issues an individual any kind of credit card basically judges the creditworthiness of an individual and then decides to issue him a credit card with particular limits and features.
Normally, a credit card comes with the following features-
Alternative to Cash: Having a credit card is a very safe and convenient alternative to carrying a bundle of cash. It can make shopping hassle-free and will also ensure the safety of money.
Emergencies: Whether there is a medical emergency or some other kind of urgent cash requirement, credit cards can provide help by making immediate credit available under such circumstances.
Making Big Purchases: The whole concept of ‘buy now pay later’ makes it rather easier for people to make some big purchases and setting up an EMI pay back method with their banks.
Build Your Credit Score: One of the biggest advantages of owning a credit card is that it is easy to build a credit history through your credit card transactions. Also, repaying all your credit card dues in time will help improve your credit score which, in turn, can help you in getting loans in the future. Many times loan applications are rejected because the applicant doesn’t have a credit history and having a credit card is one of the easiest ways to build your credit history.
Secure Transactions: New credit cards feature the chip and pin system, which adds to their security, hence they are safer than carrying around large amounts of cash and also save you from Credit Card Fraud. In case of online transactions, a two tier authentication system is followed, where apart from the information on the card such as card number, expiry date and CVV, an OTP or secret password is also required to complete the online transaction which is sent to your registered mobile number.
Track Your Purchases: When using cash, it becomes difficult to keep track of the purchases. However, with a credit card, you can easily maintain a track record of the transactions that you have made with the help of the monthly credit card statement.
Components of a Credit Card
A credit card is not all about the number and chip; there is a lot more information on the front and back of a credit card. Before using a credit card, you must know the different parts of it.
Front of a Credit Card
The front side of a credit card contains the following information.
- Credit Card Number– It is a 16-digit number that identifies your credit card account with the bank. In case of Amex Credit Card, the card number will only have 15 digits. You need to provide this number when making online purchases. This number is unique for every card hence you should never share it with anyone else.
- Expiry Date– This is also mentioned on the bottom of your credit card. This is the date through which your card remains valid.
- Bank Logo– This section includes the branding of your bank. It can be on the top right or top left corner of your card.
- Card Name– Banks launch different series of credit cards and the same will be mentioned on the card itself. For example, in case of HDFC MoneyBack Credit Card, HDFC Bank is the lender branding and MoneyBack is the card series name.
- Cardholder’s Name– The primary user’s name is also mentioned on the front side of the card at the bottom.
- Chip– The magnetic strip credit cards have now become outdated and the new cards have a smart chip on the front side. This helps in preventing fraudulent activities like card cloning.
- Network Logo– Your credit card would belong to any of the four payment networks- Visa, MasterCard, American Express or Discover. Logo of the same would be on the front side of your credit card.
- Contactless Sign– If you have a Contactless Credit Card, you would find a sign for the same on the front. You can use a contactless card just by waving it near a NFC-enabled POS machine without having to swipe it.
Back Side of a Credit Card
Following information is available on the back of your card-
- Magnetic Stripe– This stripe contains your card details and plays a major role in making payment at POS Terminals. When you swipe your card, information is sent to the bank through payment network to authorize the transaction.
- CVV– You will also find additional security code CVV on the back-side of your credit card. You are required to mention it at the time of making online payment.
- Signature Panel– There is a small panel given underneath the magnetic stripe where you are required to sign. You must sign your credit card before you start using it.
- Hologram– You will also find a mirror-like hologram on the back side of your credit card. It usually has an image printed on it which is visible when you change the viewing angle. This helps merchants identify valid credit cards.
- Bank Contact Information– The back side of your card also contains some contact information of the bank. It also includes an address to which the card must be returned if found unattended.
- Terms and Conditions- If your card has any important terms and conditions related to its usage, the same would be mentioned on the back. For example- “Not valid for payment in Foreign Exchange in Nepal and Bhutan”.
Credit card holders can enjoy the following benefits-
Welcome Offers: Most banks offer the card holder different types of welcome benefits. These benefits may come in the form of gift vouchers, discounts or bonus rewards points and can be availed by activating the bank credit card within a stipulated time period.
Reward Points or Cash Back: Every time you make a purchase on your credit card, you receive a few reward points or direct cash back credited to your account. The accumulated reward points can be redeemed to avail free gifts and merchandise whereas cash back rewards are directly applied to your card account. If you have a travel credit card, you may earn air miles instead of reward points which can be redeemed at the time of booking flight tickets.
Fuel Surcharge Waiver- This benefit can be availed on almost all credit cards, nowadays. And with fuel-centric credit cards, extra perks may be offered. Whenever you refill your vehicle, the surcharge will be waived off provided that you spend a certain amount.
Airport Lounge Access- Some credit cards also offer a certain number of complimentary lounge visits in a year at domestic airports as well as international airports. Travel-centric credit cards and premium credit cards especially offer these benefits.
Insurance- Credit cards also offer insurance and cover accidents up to a certain amount. it may be an air accident coverage, lost card liability cover or an overseas hospitalization cover.
Cash Advance- You can also withdraw cash directly from an ATM using your credit card. This is quite beneficial in times of emergency when you need some urgent cash.
Given below are the top banks offering credit cards in India-
|Bank/Financial Institution||Top Credit Cards||Annual Fee Range*|
|SBI Card||SimplyCLICK SBI Card
Air India SBI Signature Card
SBI Card ELITE
|Rs. 499 – Rs. 4,999|
|American Express||American Express Platinum Reserve Credit Card
The American Express Platinum Travel Credit Card
The American Express Membership Rewards Credit Card
|Rs. 1,000 – Rs. 10,000|
|HDFC Bank||Regalia HDFC
JetPrivilege HDFC Bank World
|Rs. 500 – Rs. 10,000|
|ICICI Bank||ICICI Bank Coral Contactless Card
ICICI Platinum Chip Card – Visa
Ferrari Platinum Credit Card
|Rs. 0 – Rs. 5,000|
|Axis Bank||Axis Bank Vistara Credit Card
Axis Bank Vistara Infinite Credit Card
Axis Bank Vistara Signature Credit Card
|Rs. 1,500 – Rs. 10,000|
|RBL Bank||RBL Platinum Maxima Card
RBL Platinum Delight Credit Card
RBL Titanium Delight Card
|Rs. 750 – Rs. 2,000|
|Standard Chartered Bank||Standard Chartered Manhattan Platinum Card
Standard Chartered Platinum Rewards Card
Standard Chartered Super Value Titanium Card
|Rs. 250 – Rs. 5,000|
|Citi Bank||Citibank® Rewards Card
Citi PremierMiles® Credit Card
IndianOil Citi® Platinum Credit Card
|Rs. 500 – Rs. 3,000|
|IndusInd Bank||IndusInd Bank Platinum Aura Credit Card
IndusInd Bank Chelsea FC Credit Card
|Rs. 0 – Rs. 1,099|
|YES Bank||YES FIRST Preferred
YES Prosperity Edge
YES Prosperity Rewards Plus
|Bank of Baroda||Bank of Baroda Premier Credit Card
Bank of Baroda Select Credit Card
Bank of Baroda Easy Credit Card
|Rs. 500 – Rs. 1,000|
*Subject to change periodically as per credit card issuer’s policies.
|Travel Credit Cards||Shopping Credit Cards||Fuel Credit Cards|
|Grocery Credit Cards||Entertainment Credit Cards||Co-branded Credit Cards|
|Rewards Credit Cards||Cashback Credit Cards||Student Credit Cards|
|Secured Credit Cards||Balance Transfer Credit Cards||Kisan Credit Cards|
Travel Credit Cards– A number of banks, nowadays, are offering travel-centric credit cards. These credit cards offer all the normal benefits along with extra focus on travel related features such as airport lounge access, air mile earnings, air accident insurance cover, etc. It is wise to put your travel expenses on these cards for earning more rewards and availing direct discounts at partner flight or hotel chains. Some of these cards may also offer low foreign exchange mark-up fee when you use them at international POS terminals or ATMs. To encourage users, travel credit cards may also offer extra reward earnings on travel expenses.
Shopping Credit Cards– These cards are more focused upon lifestyle benefits such as discounts on apparel, footwear, etc. Shopping credit cards are a viable option for frequent shoppers, especially those who would like to put their monthly expenditure on credit cards. Most of the credit cards in the market have been designed to offer shopping benefits to the users as it is the most common reason why people seek credit cards. Along with general shopping benefits, a shopping credit card can also be packed with a few other benefits such as domestic lounge access, milestone benefits, etc.
Fuel Credit Cards– As the name suggests, fuel credit cards offer extra benefits in the form of fuel surcharge waiver and bonus reward point earnings when you use them to refill your vehicle. Some banks have partnership with a brand of petrol pump and you can get benefits only when you refill at those stations whereas some banks offer benefits at all fuel pumps. The amount of surcharge waiver depends on the type of card you have.
Grocery Credit Cards– If you shop for groceries using your credit card, it is better to get a grocery credit card. These cards offer extra reward points or cash back at select supermarkets and departmental stores helping you save more on groceries. Just like shopping credit cards, grocery credit cards can also offer some other privileges like milestone benefits, lounge access, concierge facility, etc. At the same time, there may be other credit cards that offer grocery rewards as additional benefit over and above a focused benefit.
Entertainment Credit Cards– For those who love to go to movies, concerts and events, entertainment credit cards are a great option. These cards offer extra rewards and cash back when you pay for movie ticket booking. Some of these cards are co-branded with platforms like BookMyShow. Usually, the offers on entertainment credit cards keep changing so you must stay updated with the latest offers on your card to make the most of it.
Co-branded Credit Cards– Some credit cards are co-branded with airline, hotel, store or other brands. When you shop at their partner brands, extra rewards and cash back will be offered to the user. An example of co-branded credit card is Air India SBI Signature Credit Card. It gives you extra benefits when you book Air India Flight Tickets. Complimentary access to Air India’s Frequent Flyer Program- Flying Returns adds to the co-branded benefits.
Rewards Credit Cards- Credit cards that offer extra rewards than usual are known as rewards credit cards. Such cards may also offer bonus reward points as milestone benefits when you reach a particular spending level. Bonus rewards may be offered as welcome benefit as well. For example, Citi Bank Rewards Credit Card offers 1 reward point for every ₹ 125 spent on the card. It offers up to 2,500 bonus reward points as welcome benefit and 300 bonus reward points on reaching monthly spends of ₹ 30,000. Such credit cards can be really useful for those who frequently use their cards for shopping, dining, etc.
Cashback Credit Cards- Some leading banks offer cashback credit cards that provide instant cashback on certain types of cards. Citi Bank Cashback Credit Card and HDFC MoneyBack Credit Card are the two most popular cashback credit cards. Cash back can be availed in two forms- either a portion of the amount spent will be directly reversed into your credit card account or you will earn rewards and you can convert it into direct statement credit.
Kisan Credit Cards- A relatively new addition to the types of credit cards offered by leading market players, Kisan credit cards in India are provided to rural farmers in India so that they can get access to credit at preferred interest rates. Mostly, Kisan credit cards are offered by public sector banks to help farmers avail credit at reasonable rates and through organized channels.
Student Credit Cards- The student credit card market in India is still in its nascent stage but banking on the probability of growth in the not so distant future. Some card issuers have started introducing these. These cards are on offer only to students who are 18 or older and enrolled in full time education at an institute.
Balance Transfer Credit Cards- This type of card is generally bought to pay off any outstanding amount on one card with the other. In this category, a number of cards also offer interest-free time periods. Other benefits on these cards may be similar to a regular credit card. Lenders in India usually do not promote their credit cards from balance transfer perspective. They offer a range of credit cards with the balance transfer benefits already on them and the user can get the same for transferring overdue balances on other bank’s credit cards.
Secured Credit Cards- These can be a great option to start your credit journey. Offered against fixed deposits, secured credit cards come with some basic benefits. Banks can close your FD in case you default on bill payments. These FDs, in turn, are lien marked and therefore, you cannot close them as long as you hold the secured credit card issued. Usually, banks provide up to 85% of the FD as the credit limit. Secured credit card works like a normal credit card while you continue to earn interest on your fixed deposit.
Credit cards attract a lot of fees and charges. The two main charges that you are required to pay on your credit card are joining fee and annual fee. Here are joining fee and annual fee on top 10 credit cards in India–
|Credit Card||Joining Fee*||Annual Fee*|
|SBI Card ELITE||Rs. 4,999||Rs. 4,999|
|The American Express Membership Rewards Credit Card||Nil||Rs. 4,500|
|Regalia HDFC||Rs. 2,500||Rs. 2,500|
|Axis Bank Vistara Infinite Credit Card||Rs. 10,000||Rs. 10,000|
|Standard Chartered Manhattan Platinum Card||Rs. 999||Rs. 999|
|ICICI Bank Coral Contactless Card||Rs. 1,000||Rs. 500|
|RBL Platinum Delight Credit Card||Rs. 1,000||Rs. 1,000|
|Citi PremierMiles® Credit Card||Rs. 3,000||Rs. 3,000|
|IndusInd Bank Platinum Aura Credit Card||Rs. 899||Rs. 200|
|YES Prosperity Rewards Plus||Nil||Nil|
*Subject to change periodically as per credit card issuer’s policies.
Apart from these two charges, there are several other charges that credit card users should know about. These include Extended Credit Charges, Cash Advance fee, Overlimit Charges, Late Payment Fee, etc.
- Duplicate Statement Fee- A fixed sum charge that is applicable if the customer asks to receive a duplicate statement in physical form.
- Late Payment Charge- This amount is a penalty that is to be paid over and above the interest charges applicable. This fee is payable if the card holder does not make timely payments.
- Cash Withdrawal Charges- The cash withdrawal interest is an amount that is charged in case the card holder uses their credit card to make cash withdrawals against their card.
- GST- The Goods and Services Tax (GST) is charged on any of the expenses that are made using a credit card. GST depends on the value of the transaction that is inclusive of interest, fees and other charges.
- ECS or Cheque Return Charge- This is a fixed amount that is to be paid by the card holder in case of ECS failure or cheque bounce.
- Foreign Currency Transactions- This fee is a defined percentage of the transaction value for any transactions that are made on a foreign land.
- Over-limit Fee- If the card holders’ fees, purchases or finance charges exceed their credit limit, an over limit fee is charged from the card holder
With a number of credit cards available in the market offering a variety of benefits, choosing the right credit card depends mainly on where your major spending pattern lies. It also depends on how you would want to make your credit card bill payments. There are however, a few features that you should take into account before you compare credit cards and decide which one is the best for you.
- Cashback: Cash back is an option available with a number of credit cards. Under this scheme, your purchases will also give you back some credit on your account. Checking which cards have a cash back option is beneficial in the long run.
- Interest Rates: It is important to check the applicable interest rates of different credit cards. Even though one might have the best intentions, delayed payments are not that uncommon. So, with a lower interest rate, you will lose less if the payments are delayed.
- Discounts: A number of credit card providers offer discounts on various goods and services that are purchased through their own or partner organizations.
- Reward Schemes: Reward schemes are a prevalent benefit of credit cards and different cards offer points or benefits at particular vendors. So choose credit cards with rewards programs that suit your needs and match your spending patterns.
- Card Fees and Charges: It is important that you check all the applicable charges like the annual fees, reward point fees, fees for exceeding credit limit, international transaction fees, cash advance fees, etc., and not just the interest rates before choosing your right card.
- Payments: Another aspect to keep in mind is to take a look at the minimum repayment value required by the card issuing institution, as well as the length of the interest-free period (if any).
Credit Card – Eligibility Criteria
The eligibility for a credit card differs from provider to provider. However, the basic criteria are as follows:
- You should be at least 18 years old.
- Whether salaried or self-employed, you must have a regular source of income to pay back your credit card bills (minimum income bracket differs from one card to another).
- You must not have a bad credit history.
The documentation requirement also varies from issuer to issuer, some of the key documents required to apply for a credit card are as follows:
- Identity and Signature Proof- Passport, PAN card, Driving License, Voter ID card, Aadhaar card, employee identity card in case of government employees.
- Address Proof- Bank statement, Rent Agreement, Voter ID card, Ration card, Passport, Driving License, telephone/ electricity/ water/ credit card bill or Property tax.
- Age Proof- Voter ID card, Secondary School Certificate (class 10), birth certificate, Passport, Aadhaar Card, pension payment order or receipt of LIC policy.
- Income proof for Salaried Individual: Latest 3 months’ salary slips, Salary account bank statement for six months.
- Income proof for Self-employed businessmen/professionals: Latest IT Returns with computation of income and other certified financial documents along with business continuity proof.
A credit card company enters into agreements with various merchants for them to accept their credit cards. The credit card issuer issues a credit card to their customer. When a bank issues a credit card, a revolving credit line is created for the customer and this line of credit may be used by the card user to make purchases or to get cash advances by using their credit cards as ATM cards. The card holder then receives a monthly bill that can be paid off before the due date without incurring any interest for using the credit provided by the card issuer.
When a purchase is made, the cardholder is basically agreeing to pay the card issuer the amount that has been incurred, at a later date. While making a purchase, the card holder has to swipe the magnetic strip of the card on a card machine at the shop. The merchant copy of the receipt generated needs the card holder’s signature for validation. Newer cards feature the more secure chip and pin system, where the chip on the card is read by the merchant’s card machine and a four or six digit pin is required to complete and validate the transaction.
Apart from using the card through physical presentation, as discussed above, the booming online shopping industry has also benefited hugely through the availability of credit cards. Key details required for completing an online transaction using a credit card include the card number, the card expiry date, the CVV number on the back of the card and a special transaction password or one time password sent to the user’s registered mobile number.
There are various factors that can affect the credit card interest rates and interest is applied on any balance you owe on your credit card. Credit card interest rates are the highest among various debt instruments available to the customer. In most cases, credit card interest rates start at 18% and may go up to 45% annually based on various factors such as the type of card, card issuer policies and various other factors.
Interest rates charged on some popular credit cards are given in the table below-
|Credit Card||Interest Rate|
|SBI Card ELITE||Up to 3.45% p.m. (annually 40.2%)|
|The American Express Membership Rewards Credit Card||3.5% p.m. (42% p.a.)|
|Regalia HDFC||3.49% p.m. (annually 41.88%)|
|Axis Bank Vistara Infinite Credit Card||2.95% per month (41.75% per annum)|
|Standard Chartered Manhattan Platinum Card||3.49% p.m. (annually 41.88%)|
|ICICI Bank Coral Contactless Card||1.25% p.m. – 3.50% p.m.|
|RBL Platinum Delight Credit Card||Up to 3.5% p.m. (42.00% p.a.)|
|Citi PremierMiles® Credit Card||37.20% – 42.00% per annum|
|IndusInd Bank Platinum Aura Credit Card||Up to 3.83% p.m. (46% annually)|
|YES Prosperity Rewards Plus||3.22% p.m. (38.64% annually)|
About Credit Cards
When you make a purchase using your credit card, you are essentially taking out a short-term loan. The interest that is applicable on this loan will depend on when you pay it back. If you are able to make payment before the due date, there will be no applicable interest. Credit cards also have a small grace period before the payment is due in any billing cycle, which can be around 30-45 days. Paying before the end of the grace period will help you avoid any interest, while paying less than the total balance will accrue interest on the average daily balance.
Why get a credit card?
With a number of benefits supporting credit cards, the most important one is that it can help you build your credit score. Good credit, in turn, will help you obtain loans much easily in the future and also negotiate for a lower rate of interest. It also helps in getting lower insurance premiums. Apart from this, there are a number of credit cards with rewards programs that can offer card holders with a number of extra benefits like reward points, shopping benefits, etc.
Credit Card Grace Period
Say you have a credit card billing cycle of 5th January through 4th February, and the due date is 1st March, then any purchases that are made within the period will remain interest free until the due date. This is the grace period that is offered for credit cards in India, after which the balance will be subject to interest. Any cash advances that are taken on your credit card do not enjoy the benefit of a grace period.
If the cardholder does not pay the full credit card bill before the due date, the entire outstanding balance will attract the applicable rate of interest for credit cards. Not just the balance, any new spending on the card will also have these interest rates applicable, until the entire balance has been paid off. However, in the case of a cash advance, unless the card holder pays off the entire bill balance each month, there will be no grace period for them. Low interest credit cards are available, and should always be looked into whenever you compare credit cards. When the credit card holder does not pay the credit card bills on time, then interest is applied on it which leads to accumulation of credit card debt. Being late on paying credit card bills is referred to as default. Late penalty fee can also be applied on the accumulated credit card debt.
Understanding Credit Card Numbers
On the front side of your credit card, there are 16 numbers which are unique to your card. American Express and Diner Club cards have 15 digit numbers. These are not just random numbers; you will be surprised to know that every single number carries a specific meaning. Credit card numbers are assigned by the International Standards Organization (ISO). Let us break down these numbers and understand what they mean.
The first six digits of the credit card are a combination of Major Industry Identifier (MII) and the Issuer Identifier Number (IIN). In fact, it is only the first number that defines the major industry, that is, the banking and financial industry. Some other popular MII are-
- 3 for Travel and Entertainment
- 4 for Banking and Financial (VISA)
- 5 for Banking and Financial (Master Card)
- 6 for Merchandising and Banking
The first number (MII) along with the next five numbers represents the exact identifier. These six digits are together known as the Bank Identification Number (BIN).
Next is the account number which identifies the user. Different banks and card issuers may have different lengths and number sequences when it comes to the account number of the user. The next part of your credit card number is the checksum, also known as the ‘Luhn Algorithm’. This algorithm was awarded as a US patent to IBM Scientist Hans Peter Luhn. It is used to confirm the initial digits of a credit card and prevents casual attempts to make up new credit card numbers. This is how you can implement this formula-
Step 1- Double every odd number on credit card starting from the right. Suppose your card number is 4321 4456 9212 7754. 5×2=10, 7×2=14, 1×2=2, 9×2=18, 5×2=10, 4×2=8, 2×2=4, 4×2=8(10, 14, 2, 18, 10, 8, 4, 8) – This is the sequence you get.
Step 2- Now add these digits to the un-doubled numbers. Add the double digit numbers to form a single one. For example, if it’s 14, the single digit will be 1+4=5. So now the sequence is- (1, 5, 2, 9, 1, 8, 4, 8).(1+5+2+9+1+8+4+8) + (3+1+4+6+2+2+7+4) = 67
Step 3- If the number you have got from step 2 is not divisible by 10, the credit card number is fake.
Since the above number is 67 and it is not divisible by 10, this credit card number that we started with in step 1 is a fake number. Apart from these, a CVV and issue and expiration dates are assigned to your card. CVV are security codes for different credit card providers.
Credit Card Bill Payment
When you get a credit card, a billing date will be mentioned on the document provided with the card. This is the date on which your credit card bill will be generated for the given billing cycle which you are required to pay on or before the due date. The outstanding amount on your credit card will be shown as- Minimum amount due and total amount due. The total amount due is what you are required to pay. However, if you cannot afford to pay the total outstanding amount, the bank gives you the option to pay the ‘minimum amount due’. When you pay the minimum due amount, no late payment fee will be levied. However, the bank will charge interest on the remaining balance for as long as it stays in your account. So it is advised to always pay the total amount due on your credit card so you can save on the late payment fee as well as interest charges.
Making late payment on credit cards can also dip your credit score. Your credit report has a section for ‘Days Past Due’ which records the number of days after the due date during which the amount remained outstanding in your credit card account. This leads to a low credit score which in turn makes it difficult for you to get loans in future. Some important terms related to your credit card are-
Total Amount Due– This is the total amount that you have to pay towards your credit card.
Minimum Amount Due– This is minimum amount you must pay in order to avoid any late payment charges.
Billing Date– This is the date on which your credit card statement is generated.
Billing Cycle– This is the period between two billing dates.
Due Date– This is the date on or before which you should clear your credit card dues.
Reward Point Balance– This is total number of reward points in your account
Every time you use your credit card, you earn some reward points. Accumulated reward points can be redeemed against gift vouchers, merchandise or direct statement credit. The rate of rewards differs from one card to another and also on the basis of spending. For example, some cards may offer extra rewards on grocery spend while another card may give you more rewards when you book flight tickets or hotels.
The table below shows reward points offered on top 10 credit cards in India-
|Credit Card||Reward Points|
|SBI Card ELITE||2 Reward Points per Rs. 100
5X Reward Points on Dining, Departmental stores and Grocery Spends
|The American Express Membership Rewards Credit Card||1 Membership Rewards Point for every Rs. 50 spent across all categories except for spends on Fuel, Insurance, Utilities and Cash Transactions|
|Regalia HDFC||4 Reward Points per Rs. 150
9 Club Vistara(CV) points for every INR 100 spent on All Vistara Flights
|Axis Bank Vistara Infinite Credit Card||6 Club Vistara Points per Rs. 200|
|Standard Chartered Manhattan Platinum Card||5% cashback on every Rs. 150 spent at supermarkets and department stores|
|ICICI Bank Coral Contactless Card||2 PAYBACK points per Rs. 100 spent on your card (except fuel)|
|RBL Platinum Delight Credit Card||2 Reward Points per Rs.100
4 Reward Points per Rs.100
|Citi PremierMiles® Credit Card||4 Miles per Rs.100 spent
10 Miles per Rs. 100 spent on all airline transactions
|IndusInd Bank Platinum Aura Credit Card||0.5 savings points per Rs. 100
1.5 savings points per Rs. 100 on books/restaurant bills
2 savings points per Rs. 100 on purchase of consumer durables
2 savings points per Rs. 100 at departmental stores
|YES Prosperity Rewards Plus||2 Reward Points per Rs. 100
3 Reward Points per Rs. 100 on dining
4 Reward Points per Rs. 100 on international spends
Some credit cards offer cashback instead on reward points. These are credited directly into your credit card account unlike reward points which have to be redeemed. Some of the best cashback credit cards in India are HDFC MoneyBack Credit Card, Citi Bank Cashback Credit Card, IndusInd Pinnacle Credit Card and Standard Chartered Manhattan Platinum Credit Card.
Add-on credit cards are issued under a primary credit card and all transactions are directed to a single account for the payment of dues. It is useful for students who are living away from their parents and also for those who cannot have a credit card of their own. Add-on cards (supplementary card) facility is mostly offered on premium credit cards.
Mostly, the credit limit on an add-on credit card is the same as that of the primary credit card, but according to certain bank conditions, the credit limit for supplementary cards is set lower than that of the primary card. If you have been issued more than one add-on card, the sub limit decided will be distributed equally among the add-on cards to match the total limit of the primary card. This sub limit will also be applicable on any ATM withdrawals. The terms and conditions related to add-on credit cards may vary from one bank to another.
The information about all the transactions that will be conducted is recorded on one primary account. So if you hand over the additional card to someone else, you can also keep track of the withdrawals and transactions along with the exact dates.
Benefits of Add-On Credit Card
Add-on cards mostly enjoy the same credit card reward programs as the primary cards. This, however, may vary with each issuing bank, but the basic benefits are:
- Use: Most credit cards allow the card holder to use these cards in India as well as in foreign countries for conducting various transactions like shopping. Supplementary credit cards too offer card holders the same benefits. Both online and offline shopping can be done with add-on credit cards.
- ATM Facilities: The withdrawal limit set on a supplementary card may be the same as the primary card, or it might be less. But supplementary cards too have the option for cash advance. This implies that the card holder can withdraw cash from the ATMs any time of the day.
- Reward Points: Reward or bonus points are added to your account each time you swipe a credit card. After you have accumulated a certain amount of reward points you can avail a benefit or a boost from your bank. All supplementary credit cards also have the same features, the same amount of reward points are given for subsequent swipes, as is the case with the primary card.
- Monitor Usage: Monitoring the usage, spending habits and transactions made via a supplementary card is very easy as all cards are basically under the same account.
- Independence: Supplementary credit cards given to children or even parents provide them with financial freedom. These cards are also very useful in case of emergencies.
- Easy Tracking: All transactions of supplementary cards and primary cards are recorded in the same statement. This can help the card holder in easy tracking.
When it comes to getting your first credit card, it is usually one that is associated with your salary account. Most of the times, the credit card is taken without any research into the features and the benefits, and without much comparison. Of course, all credit cards are not the same, which would make one wonder whether their card is the best card for them. Taking a new credit card, or getting an upgrade seems like the obvious solution to this, so here are the factors that you should consider before you opt for a new credit card:
If you upgrade your present credit card, you will be choosing an increased credit limit. Getting a new card, on the other hand, will raise your overall credit limit. This would imply that you would be able to spend more without putting an undue burden on your credit usage.
This depends on the type of card that you choose. There are a number of benefits that you can avail from the numerous offers and rewards. If you already have a credit card that offers you benefits on fuel, maybe the next card you choose could have rewards on shopping or even fine dining. In other words, do your research and apply for a card that covers benefits on spends that were not previously covered.
It is a fact that if you utilize the credit limit of a card or multiple cards up to 50% of the overall limit, it has an adverse effect on your overall credit score. It is not an uncommon occurrence and if you are one of the people who fall in this category, getting your card upgraded or getting a new card will make sense for you. With this, as long as you are able to keep your expenses under check, you will not have to worry about putting stress on your credit score.
An increased credit limit is able to sway a lot of people into extra expenses. But if you are able to resist that and keep your expenditure in control, it will reduce your risk factor and you will be viewed as a ‘safe’ borrower by the banks. The simple reason behind this is that you show limited card usage and have access to more credit; this will improve your credit score gradually. A good CIBIL score in turn will enable you to get quicker loan approvals. You will also be able to receive negotiated interest rates on loans.
Cash flow management
An additional credit card can actually help you in better managing your cash flow. You can ensure that you are able to manage your monthly budget perfectly with a simple step. Ensure that the new card that you take has a billing cycle that is different from that of your present card. If you have a billing cycle for your present card that is billed at the end of a month, when you apply for a new card, opt for a billing cycle that is billed mid-month. This way you will be able to split your expenses.
Annual fee, penalties and interest rates
One of the main factors that you should consider is that by taking a new card your total annual fee will increase. The same is the case when you upgrade your card. With an upgrade, you will also see a hike in the annual fee that you are already paying. The penalties that are applicable on exceeding the credit limit of credit cards will also increase, along with the charges imposed on ATM withdrawals or purchases made overseas. If you are unable to make the repayments on time, you will also be charged a greater interest rate on the outstanding balance.
Upgrading your credit card or even applying for new cards may seem like a great idea, but it is a decision that must be taken only after due consideration of your needs and capabilities. Frequent upgrading or purchase of new credit cards will make you seem as financially irresponsible and will end up affecting your credit score.
Ineligibility due to income
All credit cards have a varying requirement for the minimum income of an applicant. If you do not meet that minimum requirement, your credit card application may get rejected. It is recommended that you should try to search for cards that are aligned with your income bracket to avoid any rejection on this basis.
Surprising as it may sound, the area where you reside or where your office is located, also plays a role in the acceptance of your credit card application. Banks have a list of areas that are blacklisted and where they do not provide any services.
False or even incomplete information on your application form is also one of the reasons that your application gets rejected. The bank will not call you to supply any missing information, but will straight away reject it. So, it is a good idea to spend some time going over your filled application form and correcting anything that seems out of place, wrong, or incomplete.
Discrepancies in the Credit Report
When a change is to be made in your credit report, it usually takes some time. It is also possible that some previous debt of yours that has been cleared are not updated on your credit report. So before applying, make sure that you go through your CIBIL score and report, and inform the authorities if there is any discrepancy in your report.
Bad credit history
A credit history is what shows your prospective card issuer your risk perception. The following are a few of the situations that would show you as a risky customer:
- Too many loans: If you already have too many loans, the issuer would presume that your finances are already stretched thin and that will cast doubts on your repayment capabilities.
- Too many credit card applications: Applying for a number of credit cards simultaneously will make you come forth as desperate and again cast doubts on your repayment capabilities.
- Excessive credit card usage: If you use your credit card excessively and tend to exhaust your credit limit, or even if you use up to 50% of the credit limit on a number of cards, you will be deemed as financially unstable.
This is one of the most common and obvious reasons for the rejection of a credit card application. You might not have debts presently, but if your payment history reflects that you use your credit card excessively and tend to exhaust your credit limit, or even if you use up to 50% of the credit limit on a number of cards, you will be deemed as financially unstable. This will ultimately affect your credit card applications.
With PaisaBazaar you can apply for a credit card online. Just visit our website and check whether you qualify for a credit card or not. Once you check your eligibility for a credit card online at Paisabazaar, it displays a list of popular credit cards based upon your eligibility. You can then go in for a comparison which helps you to make an informed choice. Post comparison, you can apply for a credit card online at Paisabazaar.
Paisabazaar gives you the leading-edge, here’s how:
- You can Check your credit card eligibility.
- Go for an exhaustive credit card comparison.
- Apply online for a credit card, with reference to your credit card eligibility we offer you the best credit cards in India.
- You can then compare credit cards against different criterion.
- Finally, you can make a choice from the list of best credit cards in India.
The main reason why people wish to take a credit card is so that they can convert their high-value purchases into easy Equated Monthly Instalments (EMI). So, what are these EMIs? EMIs are used to pay off both interest and principal on your borrowing so that over a period of time the entire loan is paid off in full.
Credit card EMIs can be calculated manually or using an excel sheet to cross-check whether your bank is charging you fairly. Credit card EMIs can be calculated manually or using an excel sheet to cross-check whether your bank is charging you fairly
For calculating credit card EMIs, you will need the following information-
R = Rate of Interest (this should be the monthly rate and not the APR)
T = Tenure of the Loan
For calculating the EMIs in Excel Sheet, you should use this formula- PMT (rate,nper,pv). The result will come in negative or red highlight, which indicates that it is cash outflow.
The formula to be used for manual calculation is
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
Here, P stands for the principal loan amount, R is the interest rate per month and N is the number of monthly instalments. Using the above formula, you will get the same result as you got from the excel sheet.
However, both these calculations are lengthy and complicated. A simpler method is to use our EMI calculator to find out the EMI that you would have to pay per month using the above three components- Principal, Rate of Interest and Tenure of Loan.
There are numerous credit card providers in the market offering several benefits and features on their cards. So, it is a difficult task for an individual to find the perfect card. Here at Paisabazaar.com, you can compare the credit cards available in the market and choose the one that best matches your preference.
Here are a few reasons why you must apply for a credit card through Paisabazaar.com-
Compare Credit Cards- You should never choose the first credit card that you come across. Financial decisions need thorough research and comparison. Paisabazaar.com is a platform where you can compare four cards at a time. Know about the net savings that you can make on each card, annual fees you will have to pay, reward points, general and luxury benefits, insurance, etc. Every card has been marked with what it is best for such as shopping, dining, fuel or travel. This will help you find the perfect card for yourself.
Simple Application Process- With Paisabazaar.com, your credit card is just a few clicks away. You do not have to visit different banks website to apply separately. Compare, find and apply online without any hassles.
Customer Support- Paisabazaar.com customer support team is always there to listen to the customer’s queries related to credit cards and resolves them at the earliest.
Q. Do all credit cards feature an annual fee and joining fee?
No, not all cards attract annual fee and/or a joining fee. In case of basic credit cards, there is usually no annual fee; however, cards that have an annual fee often provide more benefits than the zero annual fee cards.
Q. Can I get cash from the ATM using my credit card?
Yes. This facility is known as cash advance. You can withdraw a part of your total credit limit as cash from an ATM. But such cash withdrawals carry additional charges and feature a higher interest rate than your credit card-based purchases.
Q. Can my credit limit increase later on?
Yes. Credit limits are revised from time to time by the card issuer. This usually takes into account your previous payment track record; however, your limit may also be downgraded if you have missed multiple credit card payments on previous bills.
Q. What is a secured credit card?
A secured credit card is one that is issued against an asset say Fixed Deposit. It can be a good beginning for those who are not eligible to get a normal credit card. Leading banks like SBI and HDFC offer secured credit cards against fixed deposits.
Q. What is the difference between rewards and cashback on credit cards?
Rewards can be earned in the form of points which can later be redeemed against gift vouchers or statement credit whereas cashback comes directly into your credit card account. Most of the credit cards offer rewards and only a few provide cashback facility.
Q. What are the basic eligibility criteria for credit cards?
Banks have varied eligibility requirements when it comes to credit cards. The criteria also vary from one credit card to another. However, the basic criteria that an applicant is required to meet include age, income and credit score/history.
Q. What is a premium credit card?
Premium credit cards offer extra benefits on lifestyle, travel, entertainment, dining, etc. and they also charge substantial annual fee. International airport lounge access, concierge service, air accident insurance are some premium credit card features.
Q. What is credit card balance transfer?
Some credit cards offer the facility of transferring outstanding balances on other credit cards, consolidate the debt and pay back in EMIs. Banks also offer low introductory offers to encourage users to transfer credit card balances from other cards.
Q. Are co-branded credit cards available in India?
Yes. A number of banks have collaborated with different brands to offer co-branded credit cards in India. Air India SBI Signature Credit Card, JetPrivilege HDFC Bank World and Ferrari Platinum Credit Card by ICICI Bank are some co-branded credit cards in India.
Q. What are milestone benefits on credit cards?
Banks offer cardholders bonus rewards or shopping vouchers on reaching a particular spending limit within a specific period. This is termed as milestone benefit.
Q. My Credit Report does not show information on my new credit card. Why?
Usually, it takes up to three months for a new loan or credit card to reflect on your credit report. If it does not reflect even after three months, you should contact either your bank or the credit bureau.
Q. What is lost card liability cover?
This is a zero liability benefit offered on most of the credit cards under which the card user will not be liable to pay any amount against the expenses occurred during the period between card loss and the user informing the bank.
Q. Do credit cards come with specific cash withdrawal limits?
Yes. The cash withdrawal/advance limit on your credit card is pre-set and communicated at the time of credit card approval.
Q. How to read credit card statement?
The main components of a credit card statement are statement date, payment due date, total amount due and minimum amount due. These are mentioned usually at the start of the statement. The second part contains detailed information about transactions.
Q. What is the minimum amount due?
If you cannot pay the entire outstanding amount, the bank gives you the option of paying a minimum amount after which you will not have to pay any late fee. However, interest will be charged on the remaining balance.
Q. How can I pay my credit card bill?
There are various ways to pay your credit card bills such as net banking, mobile banking, bill desk, NEFT, cheque, etc. Alternately, you can also walk in to the nearest bank branch and make upfront payment over the counter. However, cash payment attracts certain fee.
Q. What does credit limit mean?
Credit limit is the total amount sanctioned by the bank on your credit card. This is the maximum amount you can use on your card. The bank decides the credit limit on the basis of your credit score, income and maximum limit on your existing credit cards. You can request a limit enhancement after a few years of usage but the approval of it will be at the bank’s discretion.
Q. What is the difference between a credit card and a debit card?
The basic difference between a credit card and a debit card is that debit card is connected to your savings or current account whereas credit card is a type of loan taken from the bank. In case of debit card, the amount is directly deducted from the connected savings/current account and there are no interest charges on its usage. However, in case of credit card, the amount is deducted from your credit limit.
Q. Do credit cards offer protection against fraud?
Credit cards are secured with chip and PIN, thus reducing the chances of fraud. Every time you make an online payment, you receive an OTP on the registered mobile number which you can use to authenticate the transaction.
Most of the credit cards come with zero lost card liability cover which means if your card is lost or stolen and you inform the bank immediately, the card will be blocked. This way, the card holder has limited liability in case of such frauds.
Q. What is credit utilization ratio?
This is ratio of your credit card usage to the total credit limit on your credit card. For example, if the total credit limit is ₹ 1 Lakh and you have used ₹ 30,000 out of it; your credit utilization ratio will be 30%. You should always try and maintain the ideal credit utilization ratio of 30% on all your credit cards.
ICICI Bank Launches Emeralde- a Super-Premium Credit Card- 28th Feb 2019
ICICI Bank is counted among the largest credit card providers in India. The bank has recently launched ICICI Bank Emeralde Credit Card- a super-premium card targeted at people who have a monthly salary of ₹ 3 Lakh and above. The card offers unlimited complimentary international and domestic lounge access and exclusive discounts at VLCC, Kaya Skin Clinic, Gold’s Gym, Richfeel and True Fitt n Hill. The rewards are offered in collaboration with PAYBACK. Lowest foreign currency markup fee of 1.5% makes it a great card for international travels. The Emeralde Card is offered in two variants- Mastercard and American Express.
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