What Is A Credit Card?
A credit card is a financial tool that enables cardholders to make purchases using a pre-loaded balance provided by the card issuer bank/financial organization. It allows individuals to pay for goods and services at various online and offline merchants and businesses. Credit cards come with a credit limit, the maximum amount a cardholder can spend. A cardholder is required to repay the borrowed amount along with any applicable interest charges and fees to the credit card issuer, either in full or in part, as per the payment terms agreed upon. Various Credit cards offer several benefits, such as rewards programs, cashback offers, discounts, and the ability to build a credit history, among others. However, credit cardholders must use their cards responsibly to avoid getting into debt and incurring penalties.
Check Bank Wise Credit Cards
| IDFC Credit Card | |
| HDFC Bank Credit Card | |
| SBI Credit Card | |
| Kotak Credit Card | |
| Citi Credit Card | |
| IndusInd Bank Credit Card | |
| Yes Bank Credit Card | |
| Kredit Bee Credit Card |
| RBL Credit Card | |
| HDFC Life Credit Card | |
| ICICI Bank Credit Card | |
| AXIS Bank Credit Card | |
| HSBC Credit Card | |
| Standard Chartered Credit Card | |
| Early Salary Credit Card | |
| Fintech Credit Cards | Check and Compare |
Types Of Credit Cards
Credit cards have become popular due to their convenience and numerous benefits. However, they often come with multiple charges, which can be burdensome for users. Nonetheless, some banks and institutions offer excellent Lifetime free credit cards. Such cards do not require any joining fees or annual fees. In some cases, they may have annual fees with comfortable waivers.
Credit cards have become popular due to their convenience and numerous benefits. However, they often come with multiple charges, which can be burdensome for users. Nonetheless, some banks and institutions offer excellent Lifetime free credit cards. Such cards do not require any joining fees or annual fees. In some cases, they may have annual fees with comfortable waivers.
Cashback credit cards are a type of credit card that offer cashback rewards for purchases made with the card. With these cards, a certain percentage of the purchase amount is returned to the cardholder as cashback, typically ranging from 1% to 5% depending on the card and the type of purchase. Cashback credit cards may have different structures for earning and redeeming rewards. Some cards may offer a flat cashback rate for all purchases, while others may have tiered rewards or rotating categories that offer higher cashback rates for certain types of spending, such as groceries, gas, or dining.
Fuel credit cards are a type of credit card that offers rewards and discounts on fuel purchases. These cards are particularly useful for individuals who drive frequently or have long commutes. Fuel credit cards typically offer cashback, rewards points, or discounts on fuel purchases made at participating gas stations. The rewards may be structured in different ways, such as a flat discount on all fuel purchases or a higher discount for purchases made at specific gas stations. Some fuel credit cards may also offer rewards or discounts for other types of purchases, such as groceries or dining.
Credit cards against fixed deposits (FD) are a type of credit card that is secured by the user’s fixed deposit account with a bank. These cards are designed for individuals who may not qualify for traditional credit cards due to a lack of credit history or a low credit score. To apply for a credit card against a fixed deposit, the user must first open a fixed deposit account with the bank and deposit a certain amount of money as collateral. The credit limit for the card is typically a percentage of the fixed deposit amount, such as 80% or 90%. The user can then use the credit card to make purchases, just like any other credit card.
Rewards credit cards are a type of credit card that offer rewards points, miles, or cashback for purchases made with the card. These rewards can be redeemed for a variety of options, such as travel, merchandise, gift cards, statement credits, or even charitable donations. Rewards credit cards may have different structures for earning and redeeming rewards. Some cards may offer a flat rewards rate for all purchases, while others may have tiered rewards or rotating categories that offer higher rewards rates for certain types of spending, such as groceries, gas, or dining.
First credit cards are credit cards designed for individuals who are new to credit or have limited credit history. These cards are typically easier to obtain compared to other credit cards but may have lower credit limits and higher interest rates. To qualify for a first credit card, individuals may need to have a steady income or proof of employment, as well as a good credit score or a cosigner. It’s important to choose a first credit card that has no annual fees or low fees and to use the card responsibly by making timely payments and keeping the balance low.
Railway and airport lounge access credit cards are a type of credit card that offers exclusive access to airport and railway lounges. These lounges provide a comfortable and relaxing environment with amenities such as Wi-Fi, food and beverage options, and business services. To access the lounges, users must present their credit card and a boarding pass for the same day’s travel. Some cards may offer complimentary access to the lounges, while others may require a fee or a certain level of spending on the card to qualify for access. Railway and airport lounge access credit cards may also offer other travel-related benefits, such as travel insurance, concierge services, and discounts on car rentals or hotel bookings. Some cards may also offer rewards points or miles for travel-related purchases made with the card.
Business credit cards are credit cards designed for small business owners and entrepreneurs to manage their business expenses, build credit, and earn rewards. These cards offer many benefits, such as flexible spending limits, employee card management, and expense-tracking tools. Business credit cards may have different features and benefits compared to personal credit cards. They may offer higher credit limits, rewards for business-related expenses, and additional perks such as discounts on business supplies or travel expenses. Additionally, business credit cards may have different application requirements, such as proof of business ownership and revenue.
Premium credit cards are high-end credit cards that offer exclusive benefits, rewards, and perks to cardholders. These cards typically require a high credit score and income level to qualify and may come with a high annual fee. Premium credit cards may offer a wide range of benefits and rewards, such as cashback on purchases, airline or hotel rewards programs, concierge services, travel insurance, and airport lounge access. Some premium credit cards may also offer luxury perks, such as access to special events or experiences, fine dining or shopping experiences, and personalized travel planning services.
Students’ credit cards are credit cards designed for college or university students who are new to credit and want to build their credit history. These cards often have lower credit limits and fewer rewards and benefits compared to other credit cards. Students’ credit cards can be a useful tool for building credit history and establishing good credit habits. Using a credit card responsibly by making timely payments and keeping the balance low can help students establish a positive credit history, which can be important for future credit and loan applications.
Secured credit cards are credit cards that require a security deposit as collateral to open the account. These cards are designed for individuals with limited or poor credit history, as well as those who want to rebuild their credit score. The security deposit on a secured credit card typically becomes the credit limit for the account. For example, if a cardholder puts down an INR 5000 security deposit, they will have an INR 5000 credit limit. Cardholders can use the secured credit card just like any other credit card and must make monthly payments on time to build a positive credit history.
Credit cards with low-interest rates are credit cards that offer a lower interest rate on balances carried over from month to month. These cards can be useful for individuals who carry a balance on their credit cards and want to minimize the amount of interest they pay. The interest rate on credit cards with low-interest rates is typically lower than the interest rate on other credit cards. However, these cards may come with other fees or charges, such as annual fees or balance transfer fees, which should be carefully considered before applying.
Credit cards for online shopping are credit cards that are designed to provide consumers with rewards and benefits specifically for online purchases. These cards can be a useful tool for individuals who frequently make online purchases and want to earn rewards or cashback on their purchases. Credit cards for online shopping may offer rewards or cashback for purchases made at specific online retailers, such as Amazon or Walmart, or for online purchases made in specific categories, such as groceries, travel, or entertainment. Some cards may also offer introductory rewards or sign-up bonuses for new cardholders.
Super premium credit cards are credit cards that are targeted at high-net-worth individuals and come with premium benefits and exclusive perks. These cards are designed to offer luxury services and experiences, such as access to private airport lounges, personal concierge services, and high-end travel benefits. Super premium credit cards typically come with high credit limits, high annual fees, and strict eligibility requirements, such as high minimum income or net worth. Some of these cards may also require an invitation from the card issuer.
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A credit card is a financial tool that allows you to buy things and pay for them later. When you use your credit card to make a purchase, the credit card company lends you the money until you pay it back at the end of the month.
Here are some important things to keep in mind before you get a credit card:
- Credit card companies usually give credit cards to people who have a steady income.
- If you have a good credit score, it will be easier for you to get a credit card.
- You can also get a credit card by depositing a certain amount of money in a fixed deposit account.
- The credit limit on your card will be 3 to 5 times your net monthly salary, but this can vary depending on the bank.
- Popular banks may issue credit cards, but the payment gateway is facilitated by Visa, MasterCard, and RuPay. These payment facilitators cannot set other terms and conditions on the card. Features like minimum payment amount, interest rate, reward points, etc. are determined by the credit card issuer.
Credit cards come with a wide range of benefits that make them an essential tool for managing finances. Here are some of the most common benefits of using a credit card:
- Convenience – With a credit card, you can easily make transactions without having to carry cash.
- Welcome gifts – Many credit card companies offer welcome benefits such as gift vouchers, reward points, and discounts.
- Reward points – Credit card companies give reward points for each transaction, which can be converted to cash and used to reduce your monthly bill.
- Discounts – Credit card companies give discounts on dining, shopping, hotels, movies, flights, and more.
- Complimentary airport lounge access – Some credit card companies provide complimentary airport lounge access to cardholders.
- Free travel insurance – Credit cards provide free travel insurance coverage against air accidents, baggage theft or loss, overseas emergency hospitalization, etc.
- Credit score building – Using a credit card helps build a good credit score if you repay consistently.
- Golf program – Premium credit cards offer complimentary golf rounds with complimentary training sessions, entry fees, green fees, and more.
- No-cost EMI – Credit cardholders can pay for their purchases in interest-free EMIs.
- Add-on cards – Cardholders can obtain an add-on card for their immediate family members.
- Fuel surcharge waiver – Banks offer a fuel surcharge waiver to cardholders on specific amounts spent on fuel every month.
- Expenditure tracking – Monthly credit card statements list out all transactions, helping you track your monthly expenditure and plan your budget accordingly.
- Annual fee waiver – Banks offer an annual fee waiver on reaching a certain set spend limit, with some offering additional reward points on per annum spends of a certain limit.
You can have lots of credit cards if you want. There’s no strict rule about how many you can have. But it’s important to be careful. Don’t apply for all of them at once. It’s better to start with just a few and build your credit slowly over time.
In India, many airports have special lounges where travelers can relax, eat, and drink without paying extra. Some credit cards provide free access to these lounges when you visit the airport. However, most credit cards with lounge access have limits on how many times you can use them each month or year. But there are a few very high-end cards like HDFC Infinia that offer unlimited access to these lounges.
In 1981, Andhra Bank became the first Indian bank to introduce credit cards in the country. It has been merged with Union Bank of India, which is based in Mumbai.
EMIs on credit cards function similarly to EMIs for any other loan. When you make an EMI transaction, you’ll need to provide your credit card details, and the corresponding amount will be reserved from your credit limit. However, the actual deduction from your card will occur according to the repayment schedule.
Certain credit cards allow you to withdraw cash from ATMs, but please be aware that there will be a one-time fee and finance charges associated with it. It is advisable to use a debit card instead for cash withdrawals.