Choosing the right credit card can be a difficult task as there are various options available in the market. From cashback to rewards and travel to shopping, the best credit cards in India are designed to offer an array of benefits tailored to varied lifestyles and needs. Hence, it is important to compare credit cards from different issuers and choose the one that best meets your needs and requirements.
Credit card allows cardholders to borrow funds up to a predefined credit limit to pay for goods and services. It can be used to make payments at POS terminals and pay for online transactions. The credit limit is decided by the issuer on the basis of the applicant’s income, credit score, existing debt and several other internal policies of the issuer.
On your credit card, you can see details like credit card number, expiry date, name of the cardholder and CVV. All these are important when registering your card for online payment.
For every transaction, credit cards reward the users in the form of reward points, cashback, air miles, discount, etc. As long as you clear your total dues on time and do not withdraw cash, no interest charges are applicable on credit card balances.
Credit cards come with varied features and benefits as per the type of the card. However, there are few features that almost every credit card carries as shown below:
Easy access to funds: The credit limit offered to you adds to your purchasing power and it can also be quite helpful in case of financial emergencies.
Helps build credit profile: With disciplined use of your credit card, you can build a good credit score. A good score is quite helpful for availing loans to meet your life goals like buying a home, a car, etc.
Value-back on every purchase: Most credit cards offer value back in one form or the other. On some cards, you earn reward points while others give cashback. Some cards may also offer direct discount with select brands instead of rewards or cashback.
EMI Conversion: Credit cards help you make big-ticket purchases and convert them EMIs to defer the cost over several months. This is especially helpful for users who cannot afford to pay for a lumpsum amount but can pay smaller amounts every month.
Add-on Cards: On your primary credit card, you can get add-on cards issued for your spouse, children or parents to share the benefits of the card with them.
Fuel Surcharge Waiver: When you pay for fuel using your credit card, most credit cards offer 1% fuel surcharge waiver. However, the transaction value for which you can avail the waiver and the maximum waiver amount for each month varies from card to card.
Airport Lounge Access: Airport lounge access features is not limited to travel cards only; several other cards also offer free lounge visits. The maximum number of free visits in a month/quarter/year varies from card to card.
Insurance Cover: Some credit cards also provide complimentary insurance cover for air accident, emergency hospitalization, lost card liability, luggage/document loss during travel, etc. The extent of cover varies from card to card.
Concierge Service: Credit cards, mostly premium ones, come with complimentary concierge facility which allows users the convenience of making travel bookings, gift delivery, roadside vehicle repair assistance, etc. through the concierge desk.
FinIndia24*7 offers 60+ credit cards from leading card issuers of India as shown below:
| HDFC Credit Cards | AU Bank Credit Cards | Indusind Bank Credit Cards |
| HSBC Credit Cards | SBI Credit Cards | SCB Credit Cards |
Most credit cards are focused on one or two main categories, which defines the type of credit card. Some of the most common credit card types are listed below. You can click on the respective links to know about the categories and the best credit cards in detail.
Designed to help users save on their travel spends in the form of air miles, free flights, discounted hotel stays, airport lounge access, travel insurance, etc.
Focused on providing saving on online and offline shopping spends through reward points, cashback, discount or co-branded benefits
Provide reward points for every purchase which can later be redeemed to avail vouchers or merchandise from the issuer’s rewards catalogue, converted to air miles or cashback
Offer a percentage of the spend back to the user as direct cashback instead of reward points
Help the cardholder save on fuel spends by offering extra reward points on fuel spends; most cards are co-branded with fuel brands like Indian Oil, HPCL, BPCL, etc.
charge no joining fee or annual fee
Mostly low fee cards with easier eligibility terms and basic rewards structure, suited to the needs of beginners
Help cardholders save on their dining spends in the form of reward points, discount, co-branded benefits, free memberships, etc.
Suited to the needs of brand loyalists, offering higher rewards/cashback when shopping with the associated brand
Rewards the users for their spends on groceries and departmental stores, etc.
Suited to the needs of high-income individuals and come with luxury benefits which may not be available with regular cards
Help the users avail discounted stays, free memberships or other benefits allowing travellers save on their hotel spends
issued directly in the name of an organization or the employee of an organization; provides benefits that can help businesses save on their operational costs
You can use your card to make online and offline payments, just like a debit card. Here the amount is deducted from your available credit limit. When you pay your bills, the amount is credited back to your card replenishing your credit limit.
Most credit cards offer up to 50 days of interest-free period in the form of a 30-day billing cycle and around 20 days of grace period, at the end of which the bill due date falls. Note that interest-free period is not applicable in case of cash withdrawals and when you have unpaid balance on your card.
Credit cards come with the condition that the user pays back the borrowed sum by the bill due date or over time by converting it to EMIs, failure to do so results in interest charges and other penalties.
If you are unsure whether you should get a credit card or not, here are a few situations under which it makes sense for you to get a credit card:
| Pros | Cons |
| You can make a purchase now and pay it off later | If you don’t pay your bills on time, a high-interest rate will be incurred |
| You can avail no-cost EMI options on top e-commerce platforms | You are more likely to overspend to earn more rewards or benefits |
| Credit cards help you build a good credit score if used responsibly | Frequently maxing out your card can harm your credit score |
| You can earn value back through rewards or cashback | Some merchants may limit what type of credit card networks they accept |
The eligibility criteria differ not only from one issuer to another but also for different type of credit cards in India offered by the same issuers. While the basic requirements like age, city of residence, regular source of income, credit score, etc. are likely to remain the same across card variants, the major differentiator is the minimum income requirement. Depending on the type of card, its benefits, and its annual fee, card providers have set the income eligibility criteria for each card they offer.
Credit card providers charge certain fees to the cardholders which can vary based on the card variant they own. Some of these charges like joining or annual fees are mandatory to be paid to continue using the card, while others like finance charges, cash withdrawal fees, and late payment charges are applicable depending upon your card usage. Refer below to know more about the major fees and charges charged by the leading credit card issuers:
| HDFC Credit Cards | AU Bank Credit Cards | Indusind Bank Credit Cards |
| HSBC Credit Cards | SBI Credit Cards | SCB Credit Cards |
The documentation requirement also varies from issuer to issuer. Some of the key documents required to apply for a credit card are as follows:
| Identity & Signature Proof | Passport, PAN card, Driving License, Voter ID card, Aadhaar card, employee identity card in case of government employees (any 1) |
| Address Proof | Bank statement, Rent Agreement, Voter ID card, Ration card, Passport, Driving License, telephone/ electricity/ water/ Property tax (any 1) |
| Age Proof | Voter ID card, Secondary School Certificate (class 10), birth certificate, Passport, Aadhaar Card, pension payment order or Receipt of LIC policy (any 1) |
| Income proof | For Salaried: Latest 3 months’ salary slips, Salary account bank statement for six months For Self-employed: Latest IT Returns with computation of income and other certified financial documents along with business continuity proof |
Note: If you have a pre-approved card offer from an issuer, you may not have to submit any document, especially if you already have an existing banking relationship with the issuer.
When you start your search for the right card, you will come across different types of credit cards offering various features and you will end up getting confused which card to pick for yourself. You should always look for a card that matches your spending habits. Broadly, there are 5 steps to choosing the best credit card for you, that include:
You must identify the need for you to get a credit card. Majorly, there are three reasons why people would need it- to build credit from scratch, to get a higher credit limit to be able to make bigger purchases and to avail offers across various spending categories. The right card for you would be the one that matches your need.
Once you clearly know why you want a card, you should then understand your own credit profile and which cards you may be eligible for. For example, you may want a card that offers exciting travel benefits but your income may be low for the card. So, you must ensure that the card you apply for has good chances of approval. At FinIndia24x7, you get card suggestions based on your credit profile and income. To start the search for the right card click here .
Based on the credit card comparison and your eligibility, you can shortlist a few credit cards. This will narrow down your search for the right card. To shortlist, you can ask yourself some basic questions like whether you can afford its annual fee or whether it matches your core needs.
From the shortlisted credit cards, pick one that offers you the highest value overall. Take a futuristic approach here. Ask yourself whether you would like to use this card 5 years down the line. See if the bank offers an option to upgrade to another card later.
You can either compare and apply for credit card through the bank’s website or through a third-party website. With the latter, you get the option of comparing the cards from different banks to find the best credit card for you and can also apply for credit card online.
Follow the steps given below to know how to apply for a credit card online with FinIndia24x7:
Once your application is successfully processed, you will receive your card in 7-10 business days.
Please note that some credit cards may not be available on FinIndia24x7.com. To apply for such cards, you can visit the issuer’s website or the nearest branch.
Though credit card and debit card may look the same, the way they function is completely different. The table below shows some of the key differences between debit cards and credit cards.
| Particulars | Credit Card | Debit Card |
| Availability of Funds | Borrowing from the credit line assigned to you | Amount deducted from your savings or current account |
| Spending Limits | You can spend within your pre-fixed credit limit | You can spend only up to the balance available in your savings or current account |
| Key Benefit | Short-term loan as per your credibility | Saves you from debt trap as you can spend only up to the funds available in your account |
| Important Fee & Charges | Joining fee, annual fee, late payment fee, interest charges, etc. | Cash withdrawal fee, annual fee (in some cases), etc. |
| Interest | Interest charged in case of non-payment of the total amount due | No interest charges are applicable |
| Rewards and cashback | Extensive rewards/cashback in comparison to debit cards (varied from card to card) | Minor rewards and cashback benefits |
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