Which banks are issuing credit cards

It can be as low as INR for the very basic cards, climbing to tens of thousands for the ultra-luxury plastic. A few starter cards also come at zero cost or no joining fee cards; sometimes banks also run limited time promotional offers for zero joining fee. Annual fees: Every year, you will be charged a fixed annual fee, usually same as joining fee.

Many cards also offer annual fee waiver with achievement of spend milestones. Finance charges: If the cardholder fails to repay the outstanding balance for the billing cycle, the amount is rolled over to the next month.

All other attributes remaining equal, it is naturally best to opt for a card with the low interest charge. Late payment fee: Additionally, a late payment fee will also be levied in the next statement cycle, if you miss the payment completely.

Cash withdrawal should be restricted for emergency use only. In fact, new users should avoid this facility. Over limit fee: Each credit card has a pre-sanctioned credit limit and as you breach this limit, an over limit fee is applied. It can range up to 2. This is basically a charge you pay for swiping your card overseas and for making foreign currency payments.

Choices have consequences, first-timers should be totally aware of all of the above and not get unpleasantly surprised. Your credit card allows you to buy now and pay later: you get a free credit period of up to days. For example: your card generates card statement or the bill for the previous month on say the 1 st of every month; thereafter, you get an additional 15 days to settle the bill amount. Hence the last day to pay for the expenses incurred during the previous month, would be the 15 th of the next following month.

Novices should always determine the total free credit cycle, the corresponding billing date and the payment date before availing and utilizing a credit card. Always observe a strict discipline around the payment cycle.

Besides offering you a free credit period of up to 50 days, your credit card is also an excellent tool to build your credit score. A word of caution: make sure you do not exhaust the credit limit each month and appropriately manage a conservative credit utilization ratio. Disciplined usage of credit cards ensures a sterling credit score, thereby guaranteeing favorable terms for your future funding requirements.

For example, a personal loan, a car loan, a home loan, among others. It'll just take a moment. Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image. You are now subscribed to our newsletters. Details here. A full list of potential perks would be too long to include here, but common examples include:. Lounge access. Free checked bags. Priority boarding. Elite status. Hotel benefits. Free nights. Automatic room upgrades. Free amenities. Statement credits.

Automatic credit for such things as travel expenses, purchases from selected merchants or the application fee for trusted-traveler programs. Purchase protections. Extended warranties. Protection in case of theft or damage. Price protection which refunds the difference if you find the same item cheaper elsewhere. Return guarantees. Rental car coverage. Supplemental coverage on top of your own auto insurance policy, or even primary coverage in place of your own policy.

Learn about credit card rental coverage. Cell phone insurance. Coverage in case of loss or damage. You usually have to pay for your service with your card to qualify.

Credit tracking and security. Free credit score. Credit monitoring services. Ability to "lock" your card. When you're looking to build or restore credit, several features are more important for you than for people who already have good credit. Reporting to credit bureaus.

If you're using your card responsibly, you want your credit score to reflect that. Make sure that your card reports payment activity to all three credit bureaus, the companies that assemble credit reports. Deposit requirements.

If you're getting a secured credit card, you'll need money for a security deposit. Upgrade opportunities. As your credit improves, it's nice to be able to upgrade your account to a better card. Incentives for responsible behavior. Some cards might boost your rewards rate if you pay on time, or give you access to a higher credit line.

When you put in an application for a credit card, the card issuer makes its decision based on how risky it believes it would be to lend money to you. The issuer doesn't know you, of course, so it goes by information you provide about your employment, income and assets and information contained in your credit report. The basic application process works like this:. You fill out an application for a card. Nowadays, this is usually done online, but paper application forms still exist.

The application typically asks for:. Your name, address, phone number and email address. Financial information, including your employment status and annual income. The application may also ask about your assets such as bank accounts or investments and your other obligations, such as your rent or debt payments.

Your birthdate and Social Security number. The issuer needs these to access your credit report. The issuer checks your credit. Many people think of their credit only in terms of their credit score. But that three-digit number is really nothing but a summary of the information in your credit report. It's the report that issuers are interested in. You could have a great score but still be rejected for a credit card because the issuer thinks you've applied for too many new cards in the recent past, or because your debt obligations are too big relative to your income.

If you meet the issuer's requirements, your application is approved. With online applications, approvals are usually possible within minutes. If your application is rejected , you can usually expect to receive a written explanation by mail in about a week to 10 days. Your new card comes in the mail. This typically happens within 10 business days.

You activate your card. Do this by calling a phone number or going online. Once it's activated, you can use it. Approval for a credit card is never guaranteed. Even if you have an excellent credit score, an issuer could still decline your application because you don't have enough income, or because you've opened several other cards recently, or for some other reason. Plus, "easy" is a relative term. Someone with excellent credit and a good income will usually qualify for most cards.

Someone with a middling credit score might struggle to get approved even with ample income. In general, the lower the risk to the credit card issuer, the easier it is to get approved. That's why secured credit cards are a recommended starting point for people working to build or mend credit: The security deposit requirement reduces the risk. If you've begun to build credit and have a score in the mids, look at credit cards for fair credit.

These provide more benefits but don't require a top-tier credit score. Store credit cards are also generally easier to qualify for than bank cards. They tend to have low credit limits and high interest rates, but they're a viable credit-building tool provided you keep your balances low relative to the limit and pay them off each month.

See our best store credit cards of Just as there is no single best credit card for everyone, there is no perfect number of credit cards to have. It depends on your needs and how much effort you want to put into managing your credit cards. Some people carry one card and put everything on it.

Others have literally dozens of cards, and for each purchase they use the card best suited for that transaction.

When deciding how many is right for you, keep in mind:. There's no limit to how many cards you can have. Each lender evaluates your credit on its own term, but there's no hard limit where you have "too many cards.

You don't need to have multiple cards to maintain good credit score. Credit scoring formulas tend to reward you for having different types of accounts — credit cards, mortgages, loans, etc. One credit card, responsibly managed, is enough. Maximizing rewards: One card may pay you a higher rewards rate on groceries.

Another may reward you handsomely at restaurants , or on gas purchases, or for spending on travel. Having multiple cards allows you to maximize your total rewards. Flexibility: Some cards are more widely accepted than others. Additionally, if a card is lost, stolen or compromised, you'll have another option while you wait for a replacement. More available credit: A key factor in your credit score is your credit utilization , or how much of your available credit you're using.

Missing a payment: Multiple due dates increase the risk of missing a payment, which can trigger a late fee or if it's late enough even damage your credit. As you search for the best credit card for your needs, it will help to familiarize yourself with the different types of companies in the industry. That way, you'll know not only what to look for in a credit card but also where to look for it.

Every credit card has an issuer and a network. Many of them also have co-brand partners. Each of these provides different kinds of benefits. The issuer is the bank that maintains your credit card account. It could be a huge bank like Chase, Capital One or Wells Fargo, or it could be your local bank or credit union.

The issuer takes your credit card application and decides whether you qualify for the card. It sets your interest rate and charges any account fees. The issuer sends your statement every month and collects your payments. However, Mastercard was not the only company facing such action from RBI. Check Details Here.