Credit card: Apply online & choose the best credit card

A credit card is a financial tool offered by banks and other financial services that allows the cardholders to purchase goods and services on credit. Basically, the cardholder is borrowing funds from the financial institution to pay for the purchased goods and services.

It looks similar to a debit card. However, unlike the debit card which helps withdraw funds from the cardholder’s own account, the credit card helps the cardholder take a credit from the bank for an immediate purchase. The borrowed amount has to be paid back to the bank within a stipulated timeframe. Some credit cards also allow the user to withdraw cash on credit. Credit cards also offer attractive benefits, points and rewards.

The funds spent on a credit card are a debt on the cardholder. Although it is like a loan, funds spent on a credit card are small instalments of borrowing. This means that unlike a loan where a lump sum amount is borrowed from a financial institution, the credit card allows the holder to borrow smaller amounts at a time, depending on his/ her needs.

 

How credit cards work

If you own a credit card, you can spend money on credit. Much like the debit card, the credit card can be swiped at point of sale machines while buying goods and services. Every credit card holder has a preset credit limit—an upper limit on spending.

You have to pay off your credits every month. If you are able to pay off the entire credit amount every month, no interest will be levied on your borrowings. If you cannot pay the full credit, interest will be levied on your borrowings. Cash withdrawals have a higher rate of interest than that for purchases.

Financial institutions also offer the card holder the option to pay a minimum balance and continue using the card.

 

Apply for a credit card online

Banks and financial institutions offer a host of credit cards with different features and benefits. Before you apply for a credit card, make sure you know which one you want.

Given the demand for credit cards, banks and financial institutions have made application process available on their web portals. Once you have decided on the credit card you want, visit the website of the bank and apply for a credit card. Fill out your basic details in the application. Once you have applied, a credit card representative will get in touch with you.

The representative will help you set up your account. You don’t need to visit the bank to submit documents. They will be collected from you at your doorstep. The card will be couriered to your address.

 

Apply for a credit card offline

You can also apply for a credit card by visiting your nearest bank branch. If you are not sure about which card to apply for, you can ask the representative about the best card options for you. Once you have decided on what you want, you can fill out an application form for a credit card.

Apart from the application form, you will need to provide an income proof, PAN details, address proof and two passport size photographs. After completing the formalities, your request for credit card will be vetted by the bank. Thereafter, you will receive your credit card and your pin through courier.

 

Things to know about credit cards

 

What is a credit card?

Credit cards are plastic cards that let an individual borrow funds for purchasing goods and services. It is a small loan given to the cardholder. He/ she has to repay the loan within the due date. An interest is imposed on the balance amount if the loan is not repaid in time.

 

Bill cycle

Every month, a statement is generated summing up your purchases in previous month. This statement also acts as the bill for your payment. The billing cycle of a credit card is the duration between the dates of two consecutive bills. It is usually a month long.

 

Interest rate on credit card

All banks and financial institutions that issue credit cards impose an interest on the balance that is not paid within the due date. Interest on credit cards is the highest among all credit line tools such as loans. The rate of interest varies from card to card but is added every month to the balance, if the balance is not cleared off before the due date.

 

Due date

The last date by which the cardholder must pay the balance on his/ her credit card is called the due date. The due date is inclusive of the grace period provided by the bank to the cardholder for making the payments.

Grace period

Every bank gives the cardholder a few grace days for making the payment. It varies from bank to bank and is usually between 25 to 50 days. It is the period from the date of issue of your statement for the last month to the due date, by which you have to make the payment. For example, let us assume your credit card period is between January 2 and February 1. Let us assume your due date is March 1. So any purchases until March 1 will be interest free if you pay your entire balance on or before March 1.

Late payment fees

If the cardholder misses the deadline and fails to pay on or before the due date, a late payment fee is added to the balance he/ she owes. The late payment charges are different for every bank and the cards they offer.

Bill

A bill for your month’s expenses is generated every month. The bill gives a breakup of your expenses and shows the balance you owe for your card. It also gives you the available credit. A cardholder can make payment in two ways. The bill mentions a minimum amount due and the total amount due. The total amount due is the sum of all your purchases and any interest if applicable. The cardholder can choose to pay the minimum amount due to avoid any late payment charges. The remaining amount is carried forward and interest is added to it. The cardholder can choose to pay the entire amount due and avoid late payment charges as well as interest.

Credit score

One of the reasons people go for a credit card is because it helps improve their credit score. This is a score that shows whether an individual has the capacity to repay loans. This score is used by banks and lenders to decide whether the individual is eligible for loans. The score is usually between 300 and 900. Making regular and timely payments of balance improves you credit score, which will help you get a loan later.

Rewards

Credit cards offer benefits such as cashbacks, discounts and reward points for using credit cards for purchases. Sometimes they come in form of waiver of surcharge in fuel or discounts in movie tickets. You may also get flying miles for booking flight tickets. All these benefits come as rewards to credit cardholders.

Add-on credit card

Many premium credit cards offer add-on cards for family members of the primary cardholder. Multiple add-on cards can be issued for multiple family members. Transactions made using these add-on cards are linked to the single account held by the primary card holder. More often than not the credit limit of add-on cards is the same as that of the primary card. Many banks do not issue physical add-on cards but allow family members to operate virtual add-on cards. The details of these cards are available online.

Safety

Credit cards are a safe way for making online as well as offline purchases. The cards have a magnetic strip that save all data every time the card is swiped at a point of sale machine. Every card has a unique pin number that has to be punched every time it is used. Without the pin, the card cannot be used. In case of loss of card, it can be reported to the bank immediately through customer care. Cardholders must be careful and should not, in any case, share the pin details with anyone.

For online transactions, there is a two-layered protection enabled with credit cards. For making an online payment using the credit card, one has to key in the three-digit CVV number at the back of the card. A one-time password is generated and received on the cardholder’s registered mobile number. This two-prong process helps avoid credit card frauds.

Types of credit cards

Banks and financial institutions in India offer over a dozen varieties of credit cards. Each has a different benefit and rewards. Each is designed to meet specific needs of people. To know which credit card works best for you, you must know the features of each of these cards.

Here is a short compilation of some of the types of credit cards available in India, although this list is not an exhaustive one:

Classic credit cards

Several banks and financial institutions offer a classic credit card which has a global acceptance. Such cards allow for cash advance and usually offer insurance against loss of the card. This card covers dining, travelling as well as other lifestyle expenses. Some banks also offer interest-free credit period with their classic cards.

Co-branded credit cards

Co-branded credit cards are, as the name suggests, offered by banks and financial institutions in association with a retail brand or an e-commerce website. The cards offer special heavy discounts and privileges for shopping from these brands or websites. The IRCTC SBI Platinum card is one such co-branded card.

Cashback credit cards

As the name suggests, cashback credit cards help earn cashbacks while spending. This helps the cardholder earn money even as he/ she spends money on purchases. Most credit cards come with the cashback features.

Corporate credit cards

Also known as business credit cards, these cards are tailor-made to suit the needs of those working in the corporate sector. Apart from offering deals on accommodation and travel, these cards also offer lucrative savings options.

Travel credit cards

As the name suggests, the travel credit card is designed to meet the needs of frequent travellers. They offer privileges such as air miles, travel insurance and access to airport lounges.

Fuel credit cards

The fuel credit card offers discounts and cashbacks on purchase of petrol and diesel. Many fuel credit cards offer fuel surcharge waiver and offer reward points for every time the cardholder purchases fuel.

Secure credit card

This card is ideal for those with poor credit score and having difficulty getting a credit card. The card is issued against a fixed deposit which serves as the credit limit. So if the cardholder defaults on repaying the credit, it is deducted from the FD.

Prepaid credit cards

It is similar to a debit card. As the name suggests, the cardholder has to make a deposit and can then use this credit card against that deposit. However, every time the credit card is used, funds are not deducted from the deposit. Funds are deducted from the deposit only if the cardholder defaults on payment.

Online shopping credit cards

One of the newest variety of credit cards, these are meant for those of you hooked to online shopping. Apart from the discounts and privileges, these cards also help you purchase goods and services on EMI.

Balance transfer credit cards

As the name suggests, a balance transfer credit card allows you to transfer your balance from one credit card to another. These are useful for those who have huge outstanding dues.

Credit cards for women

These are designed for women. They are primarily used for rewards and benefits on shopping. Some cards for women come with an insurance cover, too.

Entertainment credit cards

If you are someone who spends heavily on movies, theatres, shows and events, an entertainment credit card is just the one for you. Apart from offers on shows, movies and dining, the card offers reward points.

Premium credit cards

These are high-end cards meant for high-income individuals. They offer deals on luxury services, memberships to high-end clubs and other privileges to those who earn and spend lavishly.

Lifestyle credit cards

Lifestyle cards offer benefits on lifestyle services and products. These include shopping, dining, travel, entertainment and other lifestyle services.

Student credit cards

These are credit cards offered to colleges students above the age of 18 years. Few banks offer these cards.

Gold credit cards

As the name suggests, a gold credit card is meant for high income individuals. The credit limit for such cards is higher than the rest. Apart from privileges like reward points, the cards also allow for add-on credit cards for family members. Cards can be used by multiple family members and the primary card holder will hold the account.

Platinum credit card

This is also a premium card type meant for high income individuals. It is much like the gold card but with added benefits such as protection against online fraud. There is no annual fee charged on these cards.

Lifetime free credit card

Lifetime free credit cards are those that do not charge any annual fee. They also offer other benefits such as in travel, dining, entertainment and fuel purchase.

Virtual credit card

These are add-on credit cards issued on a primary credit card. They do not have plastic existence and all details of the card are available online.

Credit card for low income group

Financial institutions and banks in India also offer credit cards for those who belong to low income groups. These are basic cards that do not levy any annual charge. People with income as low as Rs1 to Rs2 lakh per annum are eligible for these credit cards. A nominal charge is levied for opening such an account.

There are many other varieties of cards offered by banks. Before you zero in on the best credit card for you, take into consideration your income and expenses. Compare the key features of the cards, the annual fees charged, the credit limit and the interest levied on borrowings. A credit card must be used properly and overuse could lead to a huge financial burden.

Features of a credit card

Credit cards are not only convenient for shopping but are also a safe payment option for cardholders. All Indian credit cards (except Amex) have a 16-digit number on them. This is the identifier of your account for your bank. Every card has a unique number and this has to be entered while shopping online. The expiry date, which is also required to make online purchases, is at the bottom of the card.

The card looks just like a debit card. In front there is the 16-digit credit card number, the account holder’s name, as well as the expiry dates. At the back, there is magnetic strip that records data of all transactions made. Below it is the CVV number. Some cards are now coming with a magnetic EVM chip instead of the magnetic strip—an upgrade that makes cards safer. Some new cards are also coming up with a contactless mode of payment, where the card can be held above the point of sales machine to make the payment and need not be swiped.

The card makes for a safe mode of payment as it has a two-pronged safety process. An online transaction can be made only if the CVV code is entered and a one-time password is generated. The OTP is sent to your registered mobile number. The OTP adds a second layer of protection. The 16-digit number and the CVV are not to be shared with anyone.

You can pay at any retailer with a point of sale machine using your credit card. It is used just like a debit card. After swiping the card, enter your pin on the machine. Make sure you punch in your pin discreetly and nobody sees your pin number.

Each credit card comes with a credit limit. This means that you can make purchases up to the limit that is allocated to you. This credit limit could be normal or revolving. In the normal limit, the bank or financial institution defines the credit at the time of issuing the credit card. In case of revolving credit, the credit varies based on your financial exposure. If you exhaust this limit, your credit card will max out.

What the credit card does is basically issue a line of credit to the account holder. This line of credit has to be returned by the customer, either in monthly instalments with interest or cleared every month at a go. In case the cardholder clears the due at a go every month, no interest is charged. The interest on cash withdrawals, on the other hand, is much higher.

An annual fee is charged by the bank or financial institution for most cards. An additional charge may be levied if there are add-on cards being used for the primary account. Paying credit card bills on time helps build a good credit score, which is important while getting a loan later. In case there is a delay in the payment of your due, there is a penalty imposed. There is a grace period or a minimum number of additional days within which the cardholder can pay dues without incurring penalty. On any balance carried past the grace period, an annual percentage rate is added.

The total balance you owe to the bank or financial institution is the sum of all the purchases made, the financial charges as well as the fees. The higher your balance, the lower is the credit available to you for making further purchases.

For the benefit of the customer, banks and financial institutions offer to give account statements of the credit card, much like the debit card. You can track your expenses and keep a record of all your transactions made using the credit card. This also helps the cardholder screen for any fraud transactions made using his/ her credit card.

A credit card helps cardholders make large purchases under the ‘buy now, pay later’ policy. This means, you can go ahead and make big purchases such as car, TV, washing machine using your credit card. It is like a loan from the bank or financial institution. You can pay the amount back in instalments over a period of time.

With a credit card in hand, you need not worry about carrying a big wad of cash on you. The card replaces this requirement for cash payment. There is, however, a service tax levied on the cardholder, as specified by the government of India. Many credit cards offer to reverse this service tax if the cardholder purchases fuel. On the other hand, most credit cards are globally accepted, which makes the need for currency conversion redundant. You can simply use your credit card to make payment in any currency in part of the world.

Banks and financial institutions offer a host of benefits for the use of credit cards. Apart from the basic feature of providing a line of credit, most credit cards have different features and are designed to suit the needs of different people. Some of these benefits come in the form of rewards, cashbacks, discounts and flying miles.

Benefits of a credit card

One of the biggest advantages of credit card is that it eliminates the requirement for cash in hand. One can travel the length and breadth of the country, and the world, pay for food, accommodation and travel without having to worry about finding an ATM.

Credit cards have also redefined shopping experiences for people. Without lugging around a wad of cash, one can now buy almost anything with a credit card. The purchaser has the option of buying now and paying later. The buying capacity of the cardholder increases. The buyer also has the option of paying in equal monthly instalments or paying off at one go.

The other big advantage of the credit card is the offers on purchases. Every credit card has some or the other reward or cashback. Many credit cards give the cardholder welcome offers for choosing the particular bank or financial institution. Other than that, purchases made with credit cards help earn reward points or cashbacks. Some credit cards offer discount or deals on dining, shopping, travel and entertainment.

A credit card comes in handy when there is a medical emergency in the family. Instead of worrying about finding funds to pay for the hospital or medical procedure, one can swipe the credit card. This shifts the focus from funds to getting the right treatment. Payment can be made later. Sometimes credit cards also cover the card holder against accidents and banking frauds or loss of credit cards, too.

Why is a credit card important?

A credit card helps the cardholder pay for goods and services on credit. It boosts the cardholder’s buying capacity by allowing him/ her to pay now and buy later. It is like a loan issued to the cardholder. A credit card gives the cardholder the authority to make purchases and pay for the credit either as monthly instalments or as a whole.

Credit card interest rates

All banks and financial institutions charge and interest on credit card purchases. Every credit card comes with and interest-free grace period of 20 to 50 days.

Every bank will issue your previous month’s balance statement on the ‘statement date’. This statement will also have the due date by which you must pay the dues. It is usually 20-25 days away from your statement date. That is your grace period.

So if you pay your outstanding dues before the due date every month, you need not worry about the interest. Interests are added if any balance is carried forward to the next month.

The interest rates are different for every credit card. Interests on credit cards are the highest among all credit line instruments. The interests are usually levied per month. It ranges from 3 to 4 per cent per month depending on the bank or financial institution you have chosen.

For HDFC bank credit cards, interest rates range up to 3.4 per cent per month. For HSBC bank credit cards the interest is up to 3.3 per cent per month. SBI credit card interest rates range between 2.25 per cent per month and 3.35 per cent. For Standard Chartered bank credit cards, the interest rates are as high as 3.49 per cent per month. Annually the rate of interest ranges between 30 and 40 per cent per annum.

Credit card eligibility

The eligibility criteria for each bank and each credit card are different from one another. The basic eligibility criterion for all credit cards is that the applicant must be over 18 years of age. The applicant must have a minimum annual income of Rs1 lakh to Rs 3 lakh, depending on the credit card he/ she is applying. Only salaried and self-employed applicants will be eligible for a credit card.

Applying for a credit card is a very important process. Many applications are rejected as the applicant is found to be not eligible for the card. You need to choose your card carefully and make sure that you qualify for the same.

For instance, HDFC issues credit cards only to people who are above 21 years of age and are not more than 60 years old if they are salaried. For self-employed people, the upper age limit is 65 years. The minimum income varies from card to card.

The SBI is more lenient and issues credit cards to students and pensioners, apart from salaried and self-employed people. The minimum annual income of the cardholder must be up to Rs3 lakh. The bank also allows for add-on cards on a primary account.

The applicant must pay close attention to the eligibility criteria of cards available and compare them to choose the best among them.

Credit card fees and charges

There are various fees and charges that come along with a credit card. The most common one of them is the annual fee. Most banks and financial institutions levy an annual fee on the account, for the benefits provided by the card. The fee is added automatically to your balance once a year. This fee varies from bank to bank and even card to card. There are also lifetime free credit cards that do not charge any annual fee.

Yet another fee that credit cardholders have to be wary of is the late payment fee. If a cardholder is late in paying the dues and has exceeded the grace period, a penalty is imposed on the balance. This penalty fee is levied over and above the interest and hence users must be careful about being late in their payments. Every transaction made by a credit card carries a service tax.

In case the card maxes out and purchases or dues are above the limit, an over limit fee is charged from the cardholder. Apart from this, an interest is levied on any balance that is carried forward to the next month. At times banks and financial institutions also charge a joining fee for getting a new credit card from the bank. However, not all credit cards levy the joining fee. Banks may levy a charge for replacing your card.

Documents required for a credit card

Before applying for a credit card, make sure you have an identity proof, an age proof, an address proof and an income proof.

You must produce a government document as proof of identity. This includes a driving licence, a pan card, a voter identification or a passport. Keep copies of any of these ready while applying for a credit card.

For address proof, you can produce your rent agreement, electricity bill, passport, driving licence, voter Id or ration card. A passport and voter ID will also serve as your age proof.

Now if you are a salaried employee, you have to produce your salary slips for the past three months, along with salary account bank statement for six months. For self-employed individuals, it is mandatory to produce the last IT return. A proof of business continuity, too, has to be submitted. Two passport size photos are also required for submission.

You can either upload these documents online or wait for a credit card representative to collect it from your doorstep.

Reviews on credit card

Before getting a credit card, you must find out the benefits and features of the various cards available in the banks and financial institutions. Choose a card that suits your need and will not end up as a financial liability for you. There are various cards on offer. Here is a review of some popular credit cards.

Yatra SBI card This card is offered by the State Bank of India in association with Yatra.com. This means that you get various discounts on travel and accommodation if you book on the website of Yatra. The card comes with discounts of Rs1,000 on domestic flights and up to Rs4,000 off on international flights. As part of joining perks, you also get Yatra discount coupons. The card charges a nominal annual fee of Rs499, which is low compared to other credit cards.

SBI Simply Save: This card is yet another card offered by the SBI. The annual fee is the same—Rs499 a year. If you withdraw cash from an ATM using this credit card, you will get a cashback of Rs100 for the first transaction. It is not only a globally accepted, it also offers fuel surcharge waiver of 2.5 per cent.

ICICI Coral card: While this card doesn’t charge any annual fees, a joining fee of Rs199 has to be paid to open an account. The card offers cashback on fuel surcharge. There are attractive rewards for online transactions, free movie tickets and offers on dining at select restaurants. A monthly interest of 3.40 per cent is levied on the balance amounts.

SBI Simply Click card: This is yet another popular credit card from the SBI which is ideal for online shoppers. The annual fee is the same at Rs499 a year. This card gives you points for making online transactions. It has a host of partners that offer exclusive points to cardholders. There are also extra points for online transactions at places that are not partners with SBI. You also get a welcome voucher to spend on Amazon as a joining gift.

SBI Student Plus Advantage card: The SBI offers a special credit card to college students. This is designed specifically for students who do not have income sources. Therefore, there is no annual or joining fee for this card if the card is used for a total spending of Rs35,000 and above. It is, however, issued against a fixed deposit in SBI. The card offers a complete waiver of fuel surcharge and rewards on expenses.

HDFC Moneyback card: This is one of the popular credit cards offered by HDFC. There is no annual fee or joining charge for this credit card. This card also provides fuel surcharge waiver of Rs250 for every billing cycle. This card is ideal for online shopping as you will get three times reward points for online transactions. An interest of 3.4 per cent per month is levied on the balance that is not cleared.

IndusInd Platinum card: There are no annual or joining charges on this premium card. It is a high-end card meant for individuals with high income and expenditure. This card is also ideal for shoppers as it provides rewards for making purchases in various bvrands such as Shoppers’ Stop, Aldo, UCB etc. There are also rewards on luxury products in sports, auto and lifestyle segments.

American Express Gold card: This is also a premium card. The bank charges you Rs1,000 as a one-time joining fee and then you have to dole out Rs4,500 as annual charges every year. However, the benefits are many. It doesn’t come with a credit limit. The limit changes according to the financial behaviour of the cardholder. There are discounts MakeMyTrip, offers on dining restaurants and also vouchers for BookMyShow.

HSBC Visa Platinum Card: This card from HSBC doesn’t include any joining or annual charges. There are various introductory offers on travel, dining and other lifestyle products and services. The card is insured against loss. The interest charged on balance is 3.3 per cent per month.

Jet Airways American Express Platinum Card: As the name suggests, the card is offered by American Express and offers benefits on flying Jet Airways. This used to be a popular choice for individuals who travelled frequently. The card offered a welcome gift of 10,000 bonus JP Miles. It also gave members access to airport lounges. There were other exclusive privileges such as baggage weight waiver and 5 per cent discount on base fare. However, with Jet Airways grounded, the rewards and benefits are unclear.

Kotak PVR Platinum credit card: If you are an avid movie watcher, this card is definitely for you. If you spend Rs10,000 a month, you get two PVR movie tickets for free. You are eligible for 24 free tickets a year. The card has add-on cards for your family. You can set the limit on each of the cards. There is no joining fee and an annual fee of Rs999 is imposed on cardholders. The interest on your balance is 3.5 per cent a month.

Indian Oil Titanium Citibank credit card: As the name suggests, this one is a fuel credit card. It does not only offer fuel surcharge waiver up to 1 per cent but also gives you Turbo points for every time you purchase fuel. You can also get up to 71 litres of fuel a year for free. The bank doesn’t charge any annual fee if you spend more than Rs30,000 a year. For purchases less than Rs30,000 a year, an annual fee of Rs1,000 is imposed. The interest rate is 3.25 per cent a month.

Standard Chartered Manhattan credit card: This is a premium credit card offered by the Standard Chartered Bank. The bank charges an annual fee of Rs999 for the card. The interest is competitive at 3.49 per cent per month. Apart from giving rewards and benefits, the card allows you to have supplementary cards for your family members. It also allows you to transfer your credit card balance to another credit card.

FAQs on credit card

What is a credit card?

A credit card is a plastic card, much like the debit card, that helps people buy products or services on a loan. The bank, which issues the credit card to the cardholder, is basically loaning the amount to the cardholder so that he or she can achieve his/ her immediate financial goals. The cardholder is supposed to pay the bank back at the end of every credit cycle. If the cardholder is not able to pay the entire balance by the due date, an interest is levied on the balance amount. If the entire amount is paid within the due date, no interest is charged. In case the payment is late, a late payment charge is imposed.

What is the difference between a credit card and a debit card?

Although both the credit and debit cards look alike, there is a basic difference between the two. When you use your debit card to make any purchase, you are using money from your own account. However, in case of a credit card, the funds are not from your account but are a loan from the bank. In case of a debit card, the expenses are debited from your account. On the contrary, in case of a credit card, every time the card is used, the amount is credited to your account as a loan. You can use a credit card to withdraw cash from an ATM but the transaction will invite a charge, unlike in the debit card.

Why should I get a credit card?

There are various reasons for getting a credit card. Whether you should get a credit card depends on what your immediate financial goals are and whether you want to purchase goods and services on credit. There are several advantages of getting a credit card and the most important of them is the rewards and cashbacks you get on purchases. Credit cards are an alternative to cash. You can also make purchases and pay for them later or as instalments. Credit cards also help improve your credit score, which comes in handy when you apply for loans.

What is the interest rate on a credit card?

Banks and financial institutions impose an interest on the credit line. A per month interest is applied on the credit. However, this interest can be avoided completely if the credit is paid for within the due date. If you don’t pay the entire balance amount within the due date, it is carried forward to the next month and a monthly interest is added to it. If you choose to pay the minimum amount due, you will successfully avoid the late payment charges. However, the remaining amount is carried forward to the next month and interest is levied on that. The interest is usually between 3 and 4 per cent per month.

What is the credit limit of my credit card?

Every credit card has a different credit limit. A credit limit is the upper limit of the expenses you can make using your credit card. To find out about your credit limit, you get in touch with a customer support agent. You can also find out your credit limit by logging into your credit card account.

Can I extend my credit limit?

Yes you can extend the credit limit. This depends on how regularly you make your payments. If you make regular payments, the bank will allow you to increase your credit limit from time to time. However, if you haven’t been regular with your payments, the bank may choose to reduce your credit limit.

Am I eligible for a credit card?

Any salaried or self-employed individual who is between 18 and 60 years of age is eligible for a credit card. You must also have an annual income that is at least Rs 2 lakh. Now, your eligibility will vary from bank to bank and card to card. While comparing the credit cards of your choice, also check the eligibility criteria for the card. You may not be eligible for some cards but you will also be eligible for some others.

How do I pay my credit card bill?

Credit card bill payments are an easy affair. You can log in to your credit card account. You can then use netbanking, mobile banking or NEFT to pay the bill from any of your savings or recurring deposit accounts. The payment is credited within minutes to the credit card account. You can also make payments using cheques. It is more convenient to make online payments as it is quicker and simple. However, you can also make cash payments at your nearest bank branch. The branch may levy a small charge for cash payments.

How do I find out my credit card bill?

Your credit card bill is sent to you via email and mail (if you have chosen to). A detailed statement is issued at the end of every credit cycle to your email and postal address. The statement gives the summary of your account—the purchases made during the cycle, the balance you owe as well as the minimum amount due.

What is my credit score?

Credit score is a three-digit score that is a reflection on the capacity of the individual to repay loans. The score is calculated on how regularly the repayments were made. This score is usually used by banks and financial institutions to decided whether an individual is worthy of a loan. It is therefore, important to maintain a good credit score. A credit card helps people improve their credit score. The amount of money paid every month, the frequency at which the payment is made and how timely the payment is made decides the individual’s credit score.

Can I withdraw cash with my credit card?

Yes, you can withdraw cash with your credit card. A credit card can be swiped at an ATM to withdraw cash. However, do keep in mind that withdrawing cash invites an additional charge to your balance.