What is a Credit Card?

A credit card is a plastic card issued by a bank that allows you to borrow money from the bank so that you can buy what you want. It could buy a meal from a flight ticket to McDonald’s or Switzerland, so you can use your credit for anything that you like. Unless you pay the borrowed amount before the next billing cycle starts, you will not have to pay any extra amount. If you do not pay the entire amount and decide the salary in installments, you will also have to pay the interest associated with it.

A Credit Card for Every Need

A Credit Card is the perfect way to go cashless. It can easily eliminate your cash crunch.


Eat out every day? With HDFC Bank Platinum Times Credit Card, you get 10 points for every Rs. 150 you spend on dining on weekdays.


Short of cash for fuel? The IndianOil Citi Platinum Card can help you save over 5% on the fuel cost if you fill fuel at IndianOil outlets.

Paying Utility Bills

Citi Cashback Card gives you 5% cash back on all your utility bill payments made online through Citibank’s Online Bill Pay service.

Buying Groceries

Go grocery shopping online. Get 10 points for every Rs. 100 you spend on grocery shopping with the SBI Simply Save Credit Card.


An option is applying for a credit card offline that can be availed. In order to do this, you must follow the steps below-

  • This can be done by visiting a branch of the bank that the customer wants to avail a credit card from.
  • Applicants will be asked to fill the necessary forms and in case they meet the required eligibility criteria, they will be able to avail the said credit card.
  • Additionally, customers can also contact the bank by calling the customer care service which most banks have.
  • This service is generally available 24/7 on all days of the week.


With the coming of the internet, almost everything has become digital today and has banks and financial institutions. In case customers want to apply for a credit card, they can make online credit card application online is very popular and also convenient. In order to do so, customers must follow the steps below-

  • Individuals will have to visit the official website of the bank and apply for the credit card of their choice, as long as they meet the eligibility criteria.
  • Customers can also e-mail the bank if necessary in order to avail a credit card.

Understanding Credit Card Numbers

Each credit card has 16 digits. The first digit on the credit card signifies its system. Stands for 3 travel or entertainment car, stands for 4 Visa cards, stands for 5 MasterCard and stands for 6 discover cards.

American –

ExpressSpecify the third and fourth digit types and currency. Starting from the fifth point, the account number is up to the eleventh mark. The 14th point is the card number within the account by the twelfth point. The fifteenth mark is a check digit.

Visa –

The sixth point is the second to the bank’s number. The account number from the seventh point to the twelfth point or the seventh point to the fifteenth point. The thirteenth digit or sixteenth digit is of the cheque digit.

MasterCard –

The second and third digits to the fourth point, the second digit to the fifth, or the second by the sixth point. It depends if the second digit is 1, 2, 3 or something other than that. The digits after the bank number are account numbers up to the fifteenth point. The sixteenth digit is a check digit.

How to use a credit card?

It is very easy to use a credit card. When banks issue credit cards, they create a revolving account for that card. Once customers receive their credit card, they can purchase it on credit for use. This credit is actually the amount that cardholders have borrowed from the card issuer. They are required to pay the dues at the end of each billing cycle. There is a limitation on the amount of loan that a use and cardholders can make sure that they should not exceed this limit.

To pay using your credit card cardholders have to authenticate the transaction by simply swiping your card at merchant stores and entering their PIN number. For some credit cards you do not need to enter a PIN number. If you are paying online to use your card, make sure that the website is a safe. Enter your credit card details in the checkout section and authenticate the payment by entering a PIN or OTP (one time password).

Compare Credit Cards from Top Banks in India

Bank Interest Rate Joining Fee
1 Ranges between 37.2% p.a. and 42% p.a. Some cards have no joining fee. For others, the fee will be communicated at the time of application.
2 3.83% per month (46% p.a.) Up to Rs.1,00,000 (the fee is different for different cards. Rs.1,00,000 is the joining fee for one card, which does not have an annual fee.)
3 Up to 3.5% per month Up to Rs.19,999
4 Up to 3.4% per month (Maximum charge in case of default is 3.5% per month) Up to Rs.10,000(The fee is different for different cards)
5 Up to 3.25% per month Up to Rs.30,000
6 Up to 3.5% per month (Maximum charge in case of default is 3.99% per month) N.A.
7 Up to 3.35% per month

Note – The rates/fees and charges may be changed by the banks at any time.

Fees and Charges for Top Credit Cards

Card Name Joining fee* Annual fee*(Year 1)
Standard Chartered Manhattan Credit Card Rs.499 Nil
SBI Simply Click Credit Card Nil Rs.499
Standard Chartered Platinum Rewards Credit Card Nil Rs.399
Citibank Cashback Credit Card Nil Rs.500
Standard Chartered Super Value Titanium Credit Card Nil Rs.499
Amex Gold Card Nil Rs.1,000
Yatra SBI Credit Card Nil Rs.499
Amex Platinum Travel Credit Card Nil Rs.3,500
SBI Signature Credit Card Nil Rs.4,999
IndianOil Citi Platinum Credit Card Nil If the annual spend is less than Rs.30,000, an annual fee of Rs.1,000 is charged.

*Taxes will be levied as applicable on these charges. The charges in the table are subject to change based on future revisions implemented by the banks

Features of a Credit Card

Banks offer amazing features on their credit cards. These features vary depending on the card provider and the type of credit card that people purchase. Some of them are as follows:

Accepted Globally – Today, most credit cards that are issued in India are international cards and are accepted by various merchants all over the world.

Balance Transfer – Credit cardholders can transfer the outstanding balance of their existing cards issued by one bank to the credit card account of another bank. Doing so helps them in saving money and repaying the amount at a low rate of interest. Banks offer various balance transfer options to their cardholders, which allows them to repay the amount on a monthly basis within a tenure of their choice.

Instalment Payment Plan – Many banks offer the instalment payment option to their cardholders. This feature allows cardholders to convert their transactions into monthly instalments. Cardholders can choose the tenure for their EMI plan. Generally, these plans have very attractive interest rates. There are some banks that offer 0% instalment payment plans to their customers.

Loans on Credit Cards – Some credit cards offer pre-approved loans to their holders at low interest rates.

Utility Bill Payment – Credit Cards have made it easy and quick for people to pay their utility bills. Using their cards, cardholders can pay all their utility bills online at one go.

Alerts – Credit cardholders receive bill payment reminders via SMS and e-mail from their banks every month, which helps them in not missing out on their monthly payments.

E-statement – Most banks today provide e-statements to their credit cardholders at the end of every billing cycle. Cardholders can access this statement at any time online.

Joining Fees – When customers apply for a credit card, they have to pay a certain amount for enrolment, known as the joining fee. There are certain cards that do not have any joining fee as well.

Annual Fees – Every credit cardholder have to pay a fixed amount to renew their card every year. This amount is called the annual fee or renewal fee. This amount varies depending on the card that a person opts for. Some banks waive this fee for their customers for a period of minimum 1 year as benefit for achieving certain spends milestone.

Lifetime Free Card – There are some banks that offer lifetime fee credit cards, which means cardholders do not have to pay any annual fee for these cards.

Lost Card Liability – Many banks offer lost card liability coverage to their credit cardholders. This feature protects the cardholders from fraudulent transactions that made using their cards after they have reported its loss to their card provider.

Insurance Coverage – Some banks offer insurance protection on certain credit cards they offer. For example – travel insurance, life insurance, etc.

Cash withdrawal facility – Credit cardholders can use their cards to withdraw money from ATMs. Banks charge a small fee for the service and cardholders can instantly avail money in any part of the world.

24×7 Customer Care Service – Banks offer 24×7 customer care service to all their credit card holders. Some banks have a separate helpline number for their cardholders. Cardholders can contact on this number to get any assistance related to their card. For example – They can contact the department to avail concierge services, make card replacement requests, report loss of cards, etc.

Credit Card Bill Payment – Banks allow their credit cardholders to pay their credit card bills online and offline. Cardholders can use NEFT, Internet Banking, Cash, Cheques, etc. facilities to pay their bills.

Benefits of a Credit Card

Welcome Gift – Many banks offer a welcome gift to new credit card applicants once the card is issued to them. This gift can be in the form of bonus points, gift vouchers, discounts, etc. The welcome gift differs depending on the card and the bank.

Rewards Program – All credit cards generally have a reward program, which allows cardholders to earn reward points on every transaction they make using their cards. The amount of points that cardholders can earn per transaction is fixed and differs from card to card. The points that card members collect can be redeemed for various gifts that are listed in the rewards catalogue of the cards. These gifts can be discounts, product, services, cashback offers, etc. Some credit cards allow card members to redeem their points against air miles and cash as well.

Fuel Surcharge Waiver – Many banks offer fuel surcharge waiver to credit cardholders when they spend specific amount of money on fuel every month. This offer is available on fuel transactions made at all Indian petrol bunks.

Cashback Benefits – There are certain credit cards that offer cashback benefits to the customers. The amount of cashback that will be offered depends on the provider.

Lifestyle Benefits – Cardholders can enjoy various lifestyle benefits on their credit cards. Lifestyle benefits include dining, shopping, golf, wellness, entertainment, etc. privileges.

Travel Benefits – This is one of the major reasons for credit cards being so popular among people. There are some credit cards that offer amazing travel benefits to the customers. Travel benefits include air miles, airport lounge access, travel insurance, airline offers, hotel offers, etc.

Airport Lounge Access – Some credit cards offer complimentary airport lounge access to the cardholders. The offer varies from one bank to another. Some banks put a limit on the number of visits, while some others allow access only to Indian airport lounges.

Exclusive Privileges from Visa/American Express/MasterCard – Visa, MasterCard and American Express are three popular and recognized credit card variants. Depending on the variant of your card, you can enjoy exclusive lifestyle, travel, etc. offers from MasterCard/Visa/American Express.

Add-on Cards – Many banks allow their credit cardholders to apply for add-on cards for their immediate family members. Most card issuers offer add-on cards for free, but some of them limit the amount of add-on cards that one can apply for. Cardholders can enjoy all the privileges of their primary cards on their add-on cards.

Air Miles – Certain credit cards such as travel or Airline cards offer Air Miles to their customers. These miles can be JPMiles, Air India Air Miles, etc. Cardholders can collect these miles and redeem them to avail flight tickets and other travel benefits.

Credit Card Grace Period

Most credit cards offer grace periods to cardholders. Grace period is the time given to credit cardholders to pay their credit card bills without incurring any interest on the outstanding amount. Grace period is also known as interest free loan period. The time period varies depending on the type of banks and cards. Generally, banks offer a rebate period of 20 days to their cardholders, starting from the day they receive their credit card bills. In India, most banks offer a maximum concession period of 50 days.

Top Credit Cards In India

Bank Rewards Annual Fee (varies depending on the card)
Citibank Travel Rewards – Up to 10 miles per transaction. Up to 10,000 bonus miles a year.
Reward Points – Up to 10 points per transaction.
First Citizen Points – Up to 7 points per transaction.
Turbo Points – Up to 4 points per transaction
Cashback – Up to 5% cashback on transactions.
Up to Rs.20,000
IndusInd Bank Reward Points – Up to 4 points per transaction.
SpendMiles and PartnerMiles – Up to 3 per transaction.
JP Miles – Up to 75,000 Miles a year.
FlightMiles – Given based on the percentage of the ticket price.
Savings Point – Up to 4 points per transaction.
Up to Rs.4,000
Kotak Mahindra Bank Reward Points – Up to 10 points per transaction.
Saving Points – Up to 10 points per transaction.
Dining Points – Up to 10 points per transaction.
Up to Rs.5,000
HDFC Bank Reward Points – Up to 8 points per transaction. More than 2,880 bonus points a year.
JPMiles – Up to 30,000 Bonus Miles. Up to 18 miles per transaction.
JP Tier Point – 1 point on reaching certain milestone.
Amazing Cashback and Discount offers on certain cards.
Up to Rs.10,000
Axis Bank Reward points – Up to 20 points on spends.
eDGE Reward Points – Up to 20 points on spends.
CV Points – Up to 6 points on spends.
Award Miles – Up to 6 miles on spends.
Up to Rs.30,000
American Express Membership Points – 1 points for transactions. Up to 11,000 bonus points on joining.
PAYBACK Points – Up to 5 points on transactions.
JP Miles – Up to 16 miles on transactions.
Up to Rs.50,000
State Bank of India Reward Points – Up to 20 points on transactions. Up to 1,00,000 bonus points a year.
Empower Points – Up to 500 points on achieving milestone.
Up to Rs.4,999

Note – The above mentioned fees can be changed at any time by the banks. With regards to the rewards section, only the top rewards have been mentioned in the table. The banks offer other rewards besides these on their cards such as discount offers, cashback offers, etc.

Documents Required to Apply for a Credit Card Online

Proof of Identity/ID proof –Applicants can submit one of the following documents as ID proof:

  • Passport
  • PAN Card
  • Ration Card
  • Aadhaar Card
  • Voter’s ID Card
  • Driving License

Proof of Address – Applicants can submit one of the following documents as address proof:

  • Telephone Bill
  • Electricity Bill
  • Passport
  • Ration Card
  • Rent Agreement
  • Aadhaar Card

Proof of Income – All the applicants have to submit their income proof when they apply for a credit card. Salaried individuals have to submit the following documents as proof :

  • Salary Certificate
  • Recent Salary slip
  • Employment Letter
  • Proof of business continuity
  • Recent ITR (Income Tax Returns) Statement
  • Audited Profit and Loss Statement or Balance Sheet
  • Certified Financials
  • Proof of business continuity

Why to Apply for a Credit Card Online through Crontax?

Crontax has made the process of comparing and applying for private financial products very easy. The website has a user-friendly interface that allows people to easily navigate without getting confused at all. There are several reasons to apply for a credit card through Crontax. Some of them are as follows:

The application simplifies the process-Lelawara has simplified the credit card application process for Indians. Now, you don’t have to go to the bank outlet or every bank’s website to compare the card and then apply for them. You just have to do a few clicks and you can be online at the Crontax website at the same time.

Comparison – before buying any personal finance products it is advisable to compare them. The process of comparing these products can be tedious and a lot of people tend to avoid it, which leads to not buying out products that make them profit. To solve this problem, Crontax introduced a platform where people can compare credit cards offered by online different banks in one place. This not only helps them take an informed decision, but also help in providing the best credit cards in India.

Apply – After comparing the credit card, you can easily apply for the card that you like on the legal website. You can easily find the card you are eligible for and then click on the ‘ Apply immediately ‘ button that exists next to the card of your choice. You can then submit online by filling out the application form and within 30 minutes you will get the answer.

Information – on the website of Crontax, you can find every detail about credit cards. In addition to this, the site also provides you with the latest credit card news and keeps you updated about events in the Indian financial market.

With 24 × 7 support-above, Crontax offers 24 × 7 support for all its customers throughout the year.

Credit Card Application Checklist (Varies with different banks)

  • Credit Card Application Form
  • Identity Proof
  • Residence Proof
  • Income Proof
  • Passport Sized Photographs
  • Bank Account Statement
  • Information about Existing Liabilities and Debts

How to calculate EMI for Credit Cards?

Credit cardholders may choose to convert some of their transactions into monthly installments. Card providers allow customers to choose repayment period for their EMI (equated monthly installment) schemes. Some banks nowadays offer to plan 0% interest instalment payments for their credit cardholders. As per this scheme, no interest is charged on monthly installments, which means that the cardholders are required to pay the principal amount in the share within the tenure they have chosen.

Some banks charge lower rate of interest on EMI plans of credit cards. In this case the EMI amount includes principal and interest rate. So, every month cardholders should pay this amount, as long as they are clear from their debts. They can calculate the amount of their installment per month before applying for the plan by using an EMI calculator online. This calculator will help them figure out how much they will be paid every month if they opted for a fixed EMI plan. In order to use the EMI calculator, they will have to enter details such as bus interest rate, principal amount and tenure therein.

Do’s and Don’ts While Taking a Business Loan

Do’s Don’ts
Check your credit History Don’t spend too much of your available balance
Use the right card at the right place and time Don’t miss your Payments
Pick your credit card due dates Don’t carry any balance
Take advantage of balance transfers if you are in debt Don’t just pick any random card.


A credit card can be used to purchase services and merchandise on borrowed loans from the bank that the card is issued. Every credit card comes with different privileges and benefits to suit a customer’s lifestyle.

Premier credit cards are signature cards from banks that come with flexible spending limits, lifestyle privileges, travel benefits, cashback offers, VIP lounge access, concierge services emergency assistance and complimentary insurance cover. Most premium credit cards can be purchased only through invitations.

The cashback that is earned by a customer can be automatically got as statement credit from the bank.

A secured credit card is usually issued against a fixed deposit, which is maintained by the customer while taking advantage of the card. Any minimum amount to be paid or delay will be charged from the payment fee. Secure credit card help customers create a good credit history

A prepaid credit card works like a debit card where money is taken from the account linked to the card. The user can load the cash on the prepaid credit card and can spend up to the available amount limit on the card.