Compare & Apply Credit Cards Online for Instant Approval (2024)

What is a credit card?

A credit card is a plastic or a metal card issued by a bank or a financial body which allows you to borrow money from them to purchase goods and services for yourself. It is important that when you use a credit card to make a certain purchase, you also return the amount back to the bank within a decided date or time.

In case there is a delay in the payment of the billing amount, the bank will charge an interest on the outstanding sum. Further delay in the payment of the outstanding sum may result in not only your card getting revoked but also your credit score getting affected which may make it difficult for you to avail loans or credit cards in future.

In addition to the regular credit line, card issuers may provide a distinct cash line of credit (LOC) to cardholders. This allows them to borrow money through cash advances, accessible via bank tellers, ATMs, or credit card convenience checks. Cash advances typically come with different terms, such as no grace period and higher interest rates, compared to transactions accessing the main credit line. Borrowing limits for cash advances are typically predetermined by issuers based on an individual's credit rating. The majority of businesses allow customers to make purchases using credit cards, which continue to be one of the most widely used payment methods for buying consumer goods and services today.

Top Credit Cards in India

To help you choose the right card, we have curated a list of the top ten credit cards in India.

Features & Benefits of a Credit Card

Credit Cards come with a range of features and benefits. They allow you to make online and in-store secure payments, build a good credit history, and offer instant access to funds during emergencies. You can earn rewards such as points or cashback on your purchases, enjoy travel perks such as access to airport lounges and travel insurance, and get protection for your purchases with extended warranties.

They also offer the flexibility to pay off balances over time and provide fraud protection. Overall, they provide convenience and extra advantages for consumers.

Different Types of Credit Cards in India

Credit card issuers in India offer a variety of cards to cater to the varied needs and preferences of the users. Some of the popular types of credit cards available include the following:

• Co-branded credit cards - offered by the credit card issuer in partnership with another company and come with a range of benefits.
• Rewards credit cards - let you earn reward points for all your spends, and the ability to earn higher points for certain category of spends.
• Travel credit cards - offer a variety of travel benefits such as complimentary airport lounge access.
• Cashback credit cards - offer you cashback for all your spends, with certain spends offering the highest cashback.
• Shopping credit cards - ideal for those who love to shop as they come with discounts and rewards at partner stores.
• Fuel credit cards - these cards come with cashback or discounts on fuel spends.
• Premium credit cards - offer exclusive privileges and perks to meet the distinct needs of the cardholders.
• Lifestyle credit cards - to meet all your lifestyle related needs such as movies, dining, golfing etc.
• Business credit cards - these cards are tailored to needs of professionals and business owners.

Choosing the right credit card that aligns with individual spending habits and financial goals can help you reap the maximum benefits of your card.

Credit Card Eligibility

To be eligible for a credit card in India, you typically need to be at least 18 years old and have a regular source of income. The income requirement varies depending on the type of card and the issuer. Having a good credit history and a positive credit score can also improve your chances of approval. You must provide identification, address proof, income proof, and other necessary documents when applying. Meeting the eligibility criteria doesn't guarantee approval, as the credit card issuer may consider other factors.

Documents Required to Apply for a Credit Card

When applying for a credit card, the documents required may vary depending on the issuer. However, in most cases you will need to submit the following documents:

• Identity proof: such as your Aadhaar card, PAN card, Driving licence, passport, or voter's ID to establish your identity.
• Address proof: such as electricity bill, telephone bill, Aadhaar card, or other valid proof of your residential address.
• Annual ITR (if required): If you are self-employed or have other sources of income, you may need to submit your annual Income Tax Returns (ITR) as proof of your financial standing.
• Latest salary slips: If you are a salaried individual, submitting your recent salary slips can help demonstrate your income and repayment capacity.
• Duly-filled application form: This form provides your personal information and serves as a formal request for a credit card.
• Passport-size photographs: Usually, you will need to provide a couple of recent passport-size photos for identification purposes.
• Bank statement: Providing your bank statement, typically for the last three to six months, helps verify your financial transactions and stability.
• Form 16: For salaried individuals, a Form 16 issued by your employer is proof of your income, taxes paid, and tax deductions.

How does a credit card work?

Given below are the steps that shows how a card works:

• They facilitate online and in-store purchases as well as bill payments.
• When they are used for a transaction, the card details are sent to the merchant's bank for authorization.
• The card issuer then verifies the information and decides whether to approve or decline the transaction.
• If approved, the payment is made to the merchant and the card's available credit is reduced.
• At the end of the billing cycle, the card issuer sends a statement detailing all transactions, previous and new balances, minimum payment due, and due date.
• The grace period is the time between a purchase and the statement's due date, during which no interest accrues if the bill is paid in full.
• Carrying a balance beyond the grace period may result in interest charges, determined by the card's annual percentage rate (APR), which includes interest rate and other fees.

How to choose the right credit card?

You can choose a card that best suits your needs, by considering the following factors:

• Your spending pattern: go for a card that helps you maximising your savings, depending on your spending pattern.
• The reward type: choose a card based on the reward type of your choice such as rewards points, airmiles & cashback rewards.
• Fees and charges: ensure that the card comes with comparatively lower fees and charges.
• Offers on the card: opt for a card that come with great offers on shopping, dining, online spends etc.
• Welcome bonus or gift: go for a card that gives you the best welcome bonus or gift.

How to Apply for a Credit Card Online

You can compare & apply for a credit card on BankBazaar by following these four simple steps:

Step 1: Provide your employment details, pin code, mobile number, and first and last name with just a few clicks.

Step 2: Enter the OTP received on your phone and click on 'Submit'.

Step 3: Based on the profile, the best cards available to you will be displayed on your screen.

Step 4: Select the card you like, apply for it and enjoy instant approval online.

Alternately, you can also apply for a card online on the bank’s website.

What is a Credit Card Number?

It is the 12 to 16 digit number printed on the front or back of your card. It is used to identify both the credit card issuer and the account holder and is normally 16 digits long and appears in sets of four.

How to Use Credit Cards Wisely?

The following are some of the important tips on how to use a credit card:

• Use the right card for the right purchase

  If you have more than one credit card, ensure that you are using the right one based on your needs. For instance, use a travel credit card if you spend a considerable part of your income on travel expenses such as booking flight tickets, hotels, and more. This way you can earn more reward points.

• Convert the purchases into EMIs

  One of the best ways to use credit cards is to convert your purchases into EMIs and repay the bills as per your convenience.

• Keep a track of your spends

  Keep a track of your spends to ensure that you do not go overlimit, and that you have sufficient funds to pay of your credit card spends.

• Shop online using reward points

  Credit cards offer higher reward points when you use them to make purchases online.

• Redeem your reward points

  You can to redeem their reward points to get discounts on hotel bookings, flight tickets, etc. These reward points provide exclusive shopping vouchers, cashbacks, and recharge voucher to the users.

Tips for Using Contactless Credit Cards

• Always keep a check on the breakdown of all your contactless payments. This way, you can keep track of all your transactions and report any unusual activity.
• If you need to initiate the payment on your own, make sure to hold the credit card flat on the payment area or the terminal.
• Always keep your contactless credit card in your wallet. Most contactless credit cards do not require you to remove it from the wallet.

Things to Know Before Applying for A Credit Card

• Transferring Money from Your Card to A Bank Account

  In India, you cannot transfer money directly from your card to other bank accounts. However, you can always use third-party websites and apps to do the same. You can transfer money to other bank accounts using your debit card. This can be done via net banking and mobile banking.

• How does the Reward Points System Work for a Credit Card?

  The reward point system of credit cards allows you to earn reward points every time you spend on different purchases. The accumulated reward points can be redeemed for merchandise, air miles, gift vouchers, or cash. The reward points have an expiry date and the minimum points needed for redemption differs from one card to another.

• Will the Rejection of Your Credit Card Application Affect Your Credit Score?

  Generally, the rejection of your application for a credit card will not directly impact your CIBIL score. Your CIBIL score is largely affected by default in payments and an unstable income source. You can always reapply for a new card once you have understood the reasons why your credit card application was rejected the first time and rectify the same. This can be done by paying off all dues.

Credit Card Statement

A Credit card statement or bill is generated every 30/31 days. The bill generation date depends on the date on which the card is first issued, and the same date will be followed for the subsequent months.

Besides the bill amount, which is also called the outstanding amount on the card, the statement also provides a detailed history of all the transactions conducted during the billing period.

It also reflects the total credit limit, available credit limit, cash limit, due date, and other related information. The statement is typically mailed to the cardholder’s registered e-mail address every month. However, if the total outstanding balance is less than a certain cut-off, say Rs. 200, no statement will be generated.

FAQs on Credit Card

1. What is a Credit Card?

   A credit cards is a financial tool that enables cardholders to pay for their online and offline purchases on credit. The cardholders usually don’t have to pay any interest on their purchases, if they pay off their credit card bills within the due date.

2. Can I get a credit card online?

   Yes. You can apply for a credit card online on the credit card issuer’s website, or you can conveniently compare multiple cards and apply for one on BankBazaar.

3. Does my credit card number change when I renew?

   The renewed card usually has the same number as your expired card, but the new card's CVV (Card Verification Value) number is different.

4. How can I get a card for the first time?

   If you already have a credit history, you can check your eligibility, choose a card that suits your lifestyle needs and apply for it on BankBazaar. If you do not have a credit history, you can opt for a secure credit card, usually offered against fixed deposits.

5. How do credit cards work?

   A credit card gives you a line of credit; you can use this to make purchases, cash advances and balance transfers. You will have to pay back the amount by the due date specified by the bank. You have the option to pay the minimum amount, any amount more than that, or the total amount due.

6. What is the meaning of a Credit Card Limit?

   The credit limit is the maximum amount one can spend on their card. A higher credit limit will allow you to spend more, and can also help improve your credit score.

7. Do I need to use my credit card every month?

   You do not have to use your card every month, but you must use it often to avoid the bank labelling it as an inactive card.

8. What is the minimum credit score for getting a card?

   A credit score above 750 is ideal for getting a credit card.

9. Can I get a credit card without a job?

   Even if you do not have a job and have a substantial cash inflow into your account every month, you may be eligible for a credit card.

10. Can I get a credit card in one day?

    Yes. Due to the online application system, your credit card application could be approved in one day. However, you may not get the physical credit card in one day.

11. Do credit cards come with airport lounge benefits?

    Yes. Many credit cards offer complimentary access to domestic and international airport lounges.

12. Are there any benefits of having a credit card?

    Yes. Most credit cards come with a reward point system that lets you earn points on your credit card spends. You can redeem these points for vouchers, cashback, or air miles.

13. How many credit cards should I have?

    The number one should own is not fixed. It depends on your financial ability and your spending behaviour. However, ensure that you smartly manage all the cards and make payments on time.

14. Can I get a credit card with a bad credit score?

    Credit scores above 750 are generally deemed suitable for credit card approvals. Scores below 750 are usually considered poor, and approval may be subject to pledging a collateral as security (collateral such as fixed deposits).

15. Which is the best and easiest way to apply for a credit card?

    The best and easiest way to get a credit card is to apply for it on a platform like BankBazaar. You can compare the features, benefits, fees, interest rates, etc., and choose a card that best suits your needs.

16. Should I pay interest on all the purchases I make using a credit card?

    No. You don't have to pay interest on all the transactions. However, if you're not repaying the due amount within the stipulated time, the unpaid due would attract interest along with all the new transactions till the due amount is repaid in full.

17. What does 'minimum due' mean on a credit card statement?

    The minimum amount due is the minimum amount a credit cardholder needs to pay in case they cannot pay the total outstanding. It is typically 5% of the total outstanding amount on the card.

18. Do I need to pay a processing fee for a loan against a credit card?

    Yes. Banks do charge processing fees for loans against credit cards. However, you need to pay a very nominal processing fee.

19. How many days will it take for a Credit Card to be renewed?

    Credit cards are automatically renewed toward the end of the expiration period. A renewed card with a new expiration date is usually sent to the cardholder a month before the existing card's expiration.

20. How long are Credit Cards usually valid?

    Credit cards issued in India are usually valid for 3 to 5 years.

21. Can I use my credit card in other countries?

    It depends on your card type. If your credit card is accepted globally, you can use it in other countries, as mentioned by your card issuer. However, a foreign transaction fee may be charged for all purchases abroad.

22. If I make a late payment on my credit card, will it affect my credit score?

    It depends on various factors - the number of days late, the number of instances, and the amount due. Based on all this, your credit card issuer would decide whether to report the same to the credit agencies.

23. Can a credit card be reopened once it is closed?

    You can always reopen a credit card account if it is closed. The credit card issuer will consider how long ago you closed the credit card account. However, remember there is no guarantee that the issuer will allow you to reopen the account.

24. Do I have to pay the bill if I don't use my credit card?

    In most cases, credit card issuers will not charge you any fee if your credit card hasn't been used for months. They will likely charge you an inactivity or dormant account fee. Depending on the credit card issuer, an inactivity fee is generally charged on deposit accounts.

25. What are the charges for withdrawing cash using my credit card?

    Different banks will charge different fees. Typically, the charge will range from 2.5% to 3% of your transaction amount. There will be a minimum amount of Rs.250 to Rs.500.

26. What should I do when my credit card is lost?

    When you lose your credit card, you need to notify the bank immediately, and they will block your account.

27. Can I get a credit card without a credit score?

    Yes, you may be able to get a secured credit card without having a credit score. However, the bank will charge a higher fee. Usually, banks accept a CIBIL score of 700-750 and above to issue a card.

28. How do you use a credit card at an ATM?

    This process is also known as a cash advance. The bank will set the maximum amount you withdraw from an ATM using your credit card. Remember that this is generally capped at up to 30% to 40% of your card limit.

29. What is the minimum age criteria to apply for a credit card?

    You must be minimum 18 years old to apply for a credit card.

30. How long will the approval process take if I apply for a credit card online?

    If you apply for a credit card online, the approval process may be completed within a day.

31. Do international credit cards work in India?

    You can use international credit cards in India. You can contact your credit card issuer to learn if you card can be used in India.

32. Can I set a transaction limit on my credit card?

    Yes. You can set a transaction limit on your credit card. You must contact your credit card issuer to set the limit.

33. How do I reach credit card customer care?

    You can reach a bank's credit card customer care by calling their customer care number or by sending an email to them. You may also contact them though chat support or WhatsApp support.

34. How to disable or enable international transactions?

    You can easily disable or enable international transactions either by contacting your card issuer’s customer support or through their website, or their mobile app.

35. How to change the contact details for a credit card?

    You will have to submit a form to change the phone number of your credit card. Some credit card issuers will allow you to change your number online; while others will need you to visit their branch to update contact details.

36. How does the card issuer decide my credit limit?

    The credit card issuer will decide the credit limit for your card by looking into a lot of factors, like your repayment history, credit score, monthly income, total debt, etc.

37. Are there any charges for international purchases made with credit cards?

    Yes, you might be charged a fee of 1% to 4% of the transaction amount for international transactions.

38. What is a credit card protection plan (CPP)?

    A CPP service will protect your credit card from loss, theft, fraud, etc.

39. What are the six types of credit card networks authorised in India?

    The five major credit card networks in India are Visa, MasterCard, American Express Banking Corp (Amex), Discover, Diners Club International, and RuPay (by the National Payments Corporation of India).

40. Can you pay your credit card bill with another credit card?

    Yes, you can pay your credit card bill with another credit card, by transferring the balance of your card to the other card.

41. What happens to my credit card liability after death?

    On the cardholder's demise, the payment of the remaining bills must be made by the legal heir.

42. Can I use my credit card at an Automated Teller Machine (ATM) without a PIN?

    In most cases, you cannot use your credit card at an ATM without a PIN.

43. Can I apply for multiple credit cards simultaneously?

    Yes, you can apply for multiple cards simultaneously if you meet the eligibility criteria.