Frequently Asked Questions
1. What are the minimum eligibility criteria to apply for a credit card in India?
Generally, applicants must be between 21 and 65 years old, have a steady monthly income (salaried or self-employed), and possess a minimum CIBIL score of 750 or higher.
2. What documents are required to apply for a credit card?
Standard documentation includes:
- Identity Proof: Aadhaar Card, PAN Card, Passport, or Voter ID.
- Address Proof: Utility Bills, Passport, or Aadhaar.
- Income Proof: Recent 3-month salary slips, bank statements, or Form 16 / ITR copies.
3. How does a credit card affect my CIBIL/Credit score?
Timely bill payments build a strong credit history and raise your score. However, late payments, high credit utilization (above 30%), or applying for multiple cards at once can lower your CIBIL score.
4. What is Credit Utilization Ratio (CUR) and what should it be?
CUR is the percentage of your total available credit limit that you use each month. It is recommended to keep your total utilization below 30% to maintain a healthy credit score.
5. What is the difference between Minimum Amount Due and Total Amount Due?
The Total Amount Due is the complete sum spent during the billing cycle. The Minimum Amount Due (usually 5%) prevents late fee charges, but the remaining balance accrues interest at high rates (up to 42% p.a.).
6. What is an interest-free grace period?
An interest-free grace period is the time between a purchase and the bill payment due date (typically 18 to 50 days) where no interest is charged, provided the full previous statement balance was paid.
7. Can I get a credit card without a CIBIL score or income proof?
Yes. You can apply for a **Secured Credit Card** issued against a Fixed Deposit (FD). Banks usually issue a credit card with a credit limit equal to 80%–90% of the FD value without requiring income proof.
8. What is the difference between Lifetime Free (LTF) and Annual Fee cards?
Lifetime Free cards carry zero joining or annual maintenance fees. Annual fee cards charge a yearly fee but usually provide higher reward rates, lounge access, and fee waivers upon reaching annual spending milestones.
9. What happens if I pay my credit card bill after the due date?
Late payments trigger a late fee, finance charges/interest on the outstanding amount from the transaction date, loss of the grace period, and a negative impact on your credit bureau report.
10. How does credit card reward point redemption work?
Reward points earned on transactions can be redeemed via the bank’s portal for product catalogs, gift vouchers, cash credits, or converted to partner airline miles and hotel loyalty points.
11. What is cash advance fee on a credit card?
withdrawing cash from an ATM using a credit card incurs a transaction fee (usually 2.5% to 3% of the amount) and immediate interest charges from the day of withdrawal without any grace period.
12. How can I convert a credit card purchase into EMIs?
Purchases can be converted into Merchant EMIs at checkout or via Post-purchase/Bank-converted EMIs through mobile banking apps. Processing fees and interest rates apply based on the tenure chosen.
13. What is Forex Markup Fee on international credit card transactions?
Forex markup is an extra charge levied by banks when transactions are conducted in a foreign currency. Standard fees range between 1.5% and 3.5%, plus applicable GST.
14. What should I do immediately if my credit card is lost or stolen?
Block the card instantly via your bank’s mobile application, net banking, or phone banking customer care number to prevent unauthorized transactions.
15. What is Zero Lost Card Liability?
Zero Lost Card Liability protects the cardholder against fraudulent transactions made on a lost or stolen card, provided the loss is reported to the bank within the stipulated timeline.
16. How can I increase my credit card limit?
You can request a limit enhancement by submitting updated proof of income, maintaining a high credit score, or accepting pre-approved limit increase offers inside your bank's portal.
17. Is credit card lounge access free?
Airport lounge access depends on card benefits. Many cards offer complimentary visits, though banks often enforce quarterly spending conditions to unlock lounge access passes.
18. What is a fuel surcharge waiver?
A fuel surcharge waiver reimburses the standard 1% surcharge levied on transactions at petrol pumps, usually valid within specified transaction limits (e.g., ₹400 to ₹4,000).
19. Does closing an old credit card harm my CIBIL score?
Yes, closing an old credit account reduces your total available credit limit (increasing CUR) and shortens your average credit history length, both of which can temporarily lower your credit score.
20. How do add-on credit cards work?
An add-on card is a supplementary credit card issued to immediate family members under the primary cardholder's account. All expenses share the primary limit and reflect on the primary statement.
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