A credit card is a plastic card issued by a bank that allows you to borrow money from the bank so that you can purchase whatever you want.
Credit Card-Apply Online
In case customers wish to apply for a credit card, they can do so online as online credit card application is highly popular and also convenient. In fact, getting online credit card has become even easier. In order to do so, customers will have to follow the steps given below –
- Individuals will have to visit the official website of the bank and apply credit card online 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.
Another convenient online credit card application can be made through financial websites such as BankBazaar.com. In order to do so, the following steps will have to be taken –
- All customers will have to do is to visit the BankBazaar website and choose ‘Credit Cards’ which will be on top of the page.
- They will then be taken to another page wherein they will see a list of available credit cards. Customers also have the option to filter the list based on the name of the bank and other criteria.
- They will then have to click on the card that they wish to procure and select the ‘Check Eligibility’ link.
- The provided questions will have to be answered and if the customer meets the required criteria, they click on the ‘Instant Apply’ button, fill up the form and submit it.
Apply for Credit Card Offline
Another option that can be availed is applying for a credit card offline. In order to do so, the steps given below will have to be followed –
- 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.
- Alternatively, you can also approach the banks by calling their support centres which are typically available 24/7 on all days of the week.
Credit Card Fees and Charges
The joining fee and annual fee on credit card are two important things you need to consider while opting for a credit card. Listed below is the joining fee and annual charged on various 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 |
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 phone banking Service – Banks offer 24×7 phone banking 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.
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.
- Self-Employed Individuals have to submit the following documents as proof:
- Certified Financials.
- Recent ITR (Income Tax Returns) Statement.
- Audited Profit and Loss Statement or Balance Sheet.
- Proof of business continuity.
Apart from the above mentioned documents, banks can ask the applicants to submit other documents, if required.
Credit Card Eligibility
The eligibility criteria for credit cards differs depending on the card you are applying for and the bank providing it. Most banks require the applicants to be at least 18 years old and earn a certain amount of income annually to apply for a card.