Credit cards are one of the most popular financial tools amongst Indians today. With the advent of technology, it has become easier than ever to get a credit card, be it from a bank or a non-bank financial institution. What’s more, issuers offer various benefits, perks, and rewards to customers who use their cards, making it an attractive financial tool for individuals with varying financial needs. In this article, we will take a look at a comprehensive guide to credit card offers in India, including features, benefits, eligibility criteria, and more.
Features of Credit Cards
Credit cards offer a range of features that make it an attractive financial tool. Here are some of the key features:
Credit Limit: The credit limit is the maximum amount that can be spent using the credit card. This amount is determined by the credit card issuer based on various factors, including income, credit score, and repayment history.
Interest Rate: Credit cards usually come with a highinterest rate if the balance is not paid in full by the due date. The interest rate can range from 15% to 40% per annum.
Reward Points: Credit card issuers offer reward points for each transaction. These points can be redeemed for various products and services, including flight tickets, hotel stays, shopping vouchers, and more.
Cashback: Cashback is offered by credit card issuers as a percentage of the amount spent. This amount is usually credited back to the credit card account.
Balance Transfer: Balance transfer is a feature that allows an individual to transfer the outstanding balance from one credit card to another at a lower interest rate.
EMI: Some credit cards offer the option to convert purchases into EMIs, making it easier to pay off the outstanding amount over a period of time.
Benefits of Credit Cards
Credit cards offer various benefits that make it an attractive financial tool. Here are some of the key benefits:
Cashback: Cashback is one of the most popular benefits of credit cards. Credit card issuers offer cashback as a percentage of the transaction amount, which is usually credited back to the credit card account.
Reward Points: Reward points earned through credit card transactions can be redeemed for various products and services, making it an attractive benefit for many cardholders.
Discounts: Credit card issuers offer discounts on various products and services, including dining, travel, shopping, and more.
Complimentary Airport Lounge Access: Some credit cards offer complimentary access to airport lounges, making it a popular benefit for frequent travellers.
Free Insurance Coverage: Credit cards offer free insurance coverage for various events, such as travel accidents, medical expenses, loss of baggage, etc.
Eligibility Criteria for Credit Cards
The eligibility criteria for credit cards vary from issuer to issuer. Here are some of the general factors that are taken into consideration when determining eligibility:
Age: The minimum age for credit card eligibility is usually 18 years. However, some issuers may require the applicant to be older.
Income: Credit card issuers check the income of the applicant to determine their repayment capability.
Credit Score: Credit score is a measure of an individual’s creditworthiness. Issuers use the credit score to determine the creditworthiness of the applicant.
Employment Status: The employment status of the applicant is also taken into consideration when determining eligibility.
How to Apply for a Credit Card
The application process for credit cards is simple and can be done online. Here are the steps to apply for a credit card:
Step 1: Find the Right Credit Card: Research various credit cards offered by different issuers and choose the one that suits your financial needs.
Step 2: Check Eligibility: Check the eligibility criteria for the chosen credit card and ensure that you meet all the eligibility requirements.
Step 3: Submit Application: Fill out the credit card application form and submit it online. Ensure that all the information provided is accurate.
Step 4: Verification: The issuer will verify all the information provided in the application form, including employment status, income, and credit score.
Step 5: Approval: If the issuer approves the application, the credit card will be dispatched to the applicant.
How to Choose the Right Credit Card
Choosing the right credit card can be a difficult task. Here are some of the factors to consider when choosing a credit card:
Purpose: Consider the purpose of the credit card. If the card is mainly for shopping, look for a card that offers rewards and cashback on shopping transactions.
Interest Rate: Consider the interest rate offered by the issuer. Choose a card that offers a lower interest rate if you are not able to pay off the balance in full every month.
Fees: Check the fees charged by the issuer, including annual fees, late payment charges, over-limit fees, and more.
Rewards: Look for cards that offer rewards and benefits that suit your lifestyle, such as free air miles, airport lounge access, discounts, and more.
Credit Card Calculator: Use a credit card calculator to determine the credit card’s interest rate, fees, and other charges.
Credit Card Options
1. Bajaj Finserv
Bajaj Finserv is one of the most popular credit card providers in India, offering various co-branded credit cards. Some of the benefits of their credit cards are as follows.
a. Bajaj Finserv RBL Bank SuperCard: This credit card offers the benefits of four credit cards in one. Users can avail cashback on all online transactions, reward points on card usage, access emergency loans, and withdraw cash from ATMs at a lower interest rate.
b. Bajaj FinservDBS Bank Credit Card: This credit card offers exclusive access to airport lounges, fuel surcharge waiver, and cashback on dining.
2. HDFC Bank
HDFC Bank is one of the most popular credit card providers in India and offers a range of credit cards, including co-branded ones. Some of the benefits of their credit cards are as follows.
a. HDFC Bank Regalia Credit Card: This credit card offers a range of benefits such as complimentary airport lounge access, dining discounts, and reward points on each transaction, travel insurance benefits, and much more.
b. HDFC Bank Diners Club Black Credit Card: This premium credit card offers unlimited access to airport lounges, exclusive dining and travel offers, reward points on every transaction, and discounted bookings at luxury hotels.
c. HDFC Bank Times Credit Card: This co-branded credit card offers exclusive discounts on bookings made through Times of India website, cashback on fuel purchases, and discounts on grocery shopping.
State Bank of India is one of the leading providers of credit cards in India, offering a range of cards that suit various needs. Some of the benefits of their credit cards are as follows.
a. SBI Card PRIME: This credit card offers welcome gift vouchers, reward points on every transaction, complimentary airport lounge access, and exclusive discounts on dining, shopping and travel bookings.
b. SBI Card Elite: This premium credit card offers welcome gift vouchers, complimentary airport lounge access, reward points on each transaction, and discounts on luxury hotel bookings.
c. SBI SimplyCLICK Credit Card: This co-branded credit card offers cashback on online purchases from selected e-commerce platforms, rewards on Amazon spending, and fuel surcharge waiver.
4. ICICI Bank
ICICI Bank offers various credit cards that cater to the needs of individuals and corporates alike. Their credit cards offer various benefits such as travel insurance, fuel surcharge waiver, and complementary access to airport lounges. Some of the benefits are mentioned below.
a. ICICI Bank Coral Credit Card: This credit card offers reward points on every transaction, discounts on dining, travel and accommodation, and travel insurance coverage.
b. ICICI Bank Platinum Credit Card: This co-branded credit card offers discounts on dining, cashback on fuel purchases, and discounted movie tickets.
c. ICICI Bank Sapphiro Credit Card: This premium credit card offers unlimited airport lounge access, complementary golf rounds, exclusive concierge service, and reward points on every transaction.
5. American Express
American Express is a leading provider of credit cards worldwide and offers various cards that cater to different needs. Their credit cards offer various benefits such as cashback, reward points, and exclusive access to airport lounges. Some of the benefits are mentioned below.
a. American Express Gold Credit Card: This credit card offers rewards on each transaction, cashback on select expenses, exclusive dining and travel benefits, and complimentary roadside assistance.
b. American Express Platinum Reserve Credit Card: This premium credit card offers unlimited access to airport lounges, exclusive dining and travel benefits, and complimentary golf rounds.
c. American Express Membership Rewards Credit Card: This co-branded credit card offers reward points on every transaction, cashback on select expenses, and discounts on shopping and dining.
In conclusion, credit cards offer numerous benefits, including cashback, rewards, discounts, and more. However, it is essential to choose the right credit card that suits your needs and spending patterns. Credit card issuers in India offer a range of credit cards, each catering to specific spending patterns and needs of individuals. It is important to read the terms and conditions of each credit card and understand the fee structure, interest rates, and reward programs before applying for one.