SBI Cashback
(Gadgetspix Ratings)
Gadgetspix
| Specification | Value |
|---|---|
| Best For | Cashback |
| Reward Rate | 1% to 5% |
| Joining Fee | ₹999 |
| Annual Fee | ₹999 |
| Annual PercentageRate | Rate |
Tata Neu Infinity HDFC Bank
(Gadgetspix Ratings)
Gadgetspix
| Specification | Value |
|---|---|
| Best For | Reward Points |
| Reward Rate | 1% to 5% |
| Joining Fee | ₹ 1,499 |
| Annual Fee | ₹ 1,499 |
| Annual PercentageRate | Rate |
American Express SmartEarn
(Gadgetspix Ratings)
Gadgetspix
| Specification | Value |
|---|---|
| Best For | Rewards |
| Reward Rate | 1% to 10% |
| Joining Fee | ₹495 |
| Annual Fee | ₹495 |
| Annual PercentageRate | Rate |
HDFC Diners Club Metal Edition
(Gadgetspix Ratings)
Gadgetspix
| Specification | Value |
|---|---|
| Best For | Reward Points |
| Reward Rate | 3.3% to 33% |
| Joining Fee | ₹10,000 |
| Annual Fee | ₹10,000 |
| Annual PercentageRate | Rate |
Axis Bank MyZone
(Gadgetspix Ratings)
Gadgetspix
| Specification | Value |
|---|---|
| Best For | Lifestyle |
| Reward Rate | 0.4% |
| Joining Fee | ₹500 |
| Annual Fee | ₹500 |
| Annual PercentageRate | Rate |
Club Vistara IDFC FIRST Bank
(Gadgetspix Ratings)
Gadgetspix
| Specification | Value |
|---|---|
| Best For | Travel |
| Reward Rate | 0.8% to 4% |
| Joining Fee | ₹4,999 |
| Annual Fee | ₹4,999 |
| Annual PercentageRate | Rate |
IDFC FIRST Bank Select
(Gadgetspix Ratings)
Gadgetspix
| Specification | Value |
|---|---|
| Best For | Lifestyle |
| Reward Rate | 0.2% to 1.6% |
| Joining Fee | Free |
| Annual Fee | Free |
| Annual PercentageRate | Rate |
SBI SimplyCLICK
(Gadgetspix Ratings)
Gadgetspix
| Specification | Value |
|---|---|
| Best For | Rewards |
| Reward Rate | 0.25% to 2.5% |
| Joining Fee | ₹499 |
| Annual Fee | ₹499 |
| Annual PercentageRate | Rate |
IDFC FIRST Bank Wow
(Gadgetspix Ratings)
Gadgetspix
| Specification | Value |
|---|---|
| Best For | Students |
| Reward Rate | 0.67% |
| Joining Fee | Free |
| Annual Fee | Free |
| Annual PercentageRate | Rate |
Amazon Pay ICICI Bank
(Gadgetspix Ratings)
Gadgetspix
| Specification | Value |
|---|---|
| Best For | Cashback |
| Reward Rate | 1% to 5% |
| Joining Fee | Free |
| Annual Fee | Free |
| Annual PercentageRate | Rate |
HDFC Bank Infinia Metal Edition
(Gadgetspix Ratings)
Gadgetspix
| Specification | Value |
|---|---|
| Best For | Travel |
| Reward Rate | 3.3% to 33% |
| Joining Fee | ₹12,500 |
| Annual Fee | ₹12,500 |
| Annual PercentageRate | Rate |
Axis Bank Reserve
(Gadgetspix Ratings)
Gadgetspix
| Specification | Value |
|---|---|
| Best For | Lifestyle |
| Reward Rate | 1.5% to 3% |
| Joining Fee | ₹ 50,000 |
| Annual Fee | ₹ 50,000 |
| Annual PercentageRate | Rate |
SBI SimplySAVE
(Gadgetspix Ratings)
Gadgetspix
| Specification | Value |
|---|---|
| Best For | Shopping |
| Reward Rate | 0.7% to 1.7% |
| Joining Fee | ₹499 |
| Annual Fee | ₹499 |
| Annual PercentageRate | Rate |
Axis Bank Ace
(Gadgetspix Ratings)
Gadgetspix
| Specification | Value |
|---|---|
| Best For | Cashback |
| Reward Rate | 2% to 5% |
| Joining Fee | ₹499 |
| Annual Fee | ₹499 |
| Annual PercentageRate | Rate |
American Express Platinum
(Gadgetspix Ratings)
Gadgetspix
| Specification | Value |
|---|---|
| Best For | Lifestyle |
| Reward Rate | 1.25% to 2.5% |
| Joining Fee | ₹60,000 |
| Annual Fee | ₹60,000 |
| Annual PercentageRate | Rate |
What Is a Credit Card? Meaning, Working, Benefits, Charges and Types in India
A credit card is a widely used financial tool issued by a bank or authorised financial institution that allows an individual to borrow money to pay for goods and services. Unlike debit cards, which deduct money directly from your bank account, a credit card lets you spend up to a pre-approved limit and repay the amount later.
In simple terms, every time you swipe, tap, or use your credit card online, you are taking a short-term loan from the card issuer. This borrowed amount must be repaid within a specified billing cycle. If you repay the full amount within the due date, you usually pay no interest. However, unpaid balances attract interest and other applicable charges.
Credit cards have become an essential part of modern financial life in India, offering convenience, rewards, security, and the opportunity to build a strong credit history—provided they are used responsibly.
Key Features of a Credit Card
Understanding the main features of a credit card helps you use it wisely and avoid unnecessary debt.
- Credit Limit: This is the maximum amount you are allowed to spend using your credit card. The limit is determined by the card issuer based on your income, credit score, repayment history, and overall creditworthiness.
- Interest Rate (APR): The annual percentage rate (APR) is charged on unpaid balances. In India, credit card interest rates typically range between 35% and 45% per annum, making it important to clear dues on time.
- Grace Period: Most credit cards offer an interest-free period of 45 to 50 days, provided you repay the full outstanding amount by the due date.
- Rewards and Benefits: Many credit cards offer cashback, reward points, travel miles, fuel surcharge waivers, dining discounts, and exclusive lifestyle privileges.
While credit cards offer flexibility and benefits, misuse can lead to debt accumulation. Keeping your spending within limits and paying bills on time helps maintain a healthy credit score.
How Does a Credit Card Work?
A credit card operates through a structured system involving multiple entities that ensure secure and seamless transactions.
- You (Cardholder): The individual who uses the credit card for purchases.
- Merchant: The store or service provider accepting the card.
- Card Issuer: The bank or financial institution that issued the card.
- Payment Processor: Handles transaction authorisation and fund transfers.
- Card Networks: Networks like Visa, Mastercard, and RuPay that enable communication between all parties.
Step-by-Step Credit Card Transaction Flow
- Purchase: You swipe, tap, or enter card details to make a payment.
- Authorisation: Transaction details are sent securely to the payment processor.
- Verification: The card issuer checks available credit and validates the transaction.
- Approval: If approved, confirmation is sent back to the merchant.
- Payment Settlement: The issuer pays the merchant after deducting processing fees.
- Billing: The transaction appears on your monthly statement.
- Repayment: You repay the amount in full or partially by the due date.
Pros and Cons of Using Credit Cards in India
Credit cards provide convenience, but they also demand financial discipline.
Advantages
- Interest-free credit period of up to 45–50 days
- Cashback, reward points, and air miles on spending
- Helps build a strong credit score with timely repayments
- Safer than cash due to fraud protection and chargeback rights
Disadvantages
- High interest rates if dues are unpaid
- Risk of overspending due to easy credit access
- Additional charges such as late fees, GST, and penalties
- Negative impact on credit score if payments are delayed
Used wisely, credit cards can be powerful financial tools. Used carelessly, they can become expensive liabilities.
Credit Card Charges Explained
Before choosing a credit card, it is essential to understand the charges involved.
- Annual Fee: Ranges from Rs 0 to over Rs 5,000; often waived on meeting spending milestones
- Interest Charges: Applied daily on unpaid balances after the due date
- Late Payment Fee: Typically Rs 500 to Rs 1,300 depending on outstanding amount
- Cash Withdrawal Fee: 2.5%–3% of withdrawn amount plus immediate interest
- Foreign Transaction Fee: Usually between 2% and 3.5%
Things to Know Before Applying for a Credit Card
- Check Your Credit Score: A score above 700 improves approval chances and card benefits.
- Define Your Purpose: Choose a card based on spending habits—travel, cashback, or credit building.
- Compare Features: Look beyond welcome bonuses and focus on long-term value.
- Understand Fees: Always read the fee structure carefully.
- Assess Repayment Ability: Never spend more than you can repay comfortably.
Eligibility Criteria for Credit Cards in India
- Age: Generally between 18 and 65 years
- Income: Rs 15,000–Rs 25,000 monthly for basic cards
- Credit Score: 700+ preferred
- Employment: Salaried or self-employed with stable income
Documents Required for Credit Card Application
- PAN Card (mandatory)
- Aadhaar card, passport, or address proof
- Salary slips, Form 16, or ITR
- Recent passport-size photograph
Types of Credit Cards Available in India
- Rewards Credit Cards
- Travel Credit Cards
- Cashback Credit Cards
- Fuel Credit Cards
- Lifestyle Credit Cards
- Business Credit Cards
- Student Credit Cards
- Secured Credit Cards
How to Choose the Right Credit Card
The best credit card is not the one with the highest rewards but the one that matches your spending pattern and financial goals.
How to Apply for a Credit Card
- Check your credit score and eligibility
- Compare credit card options
- Gather required documents
- Apply online or at a bank branch
- Wait for approval and verification
- Use the card responsibly after activation
The application process may vary by issuer, but responsible usage remains the key to long-term financial benefits.
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