Frequently asked questions

An annual fee is the charge your bank levies every year for holding the credit card, billed to your statement. In India it ranges from zero on lifetime-free cards to ₹60,000 on super-premium cards. Many issuers waive the renewal fee when you cross a yearly spend threshold, so always check the waiver limit before treating the fee as unavoidable.

An annual fee waiver means the bank credits back your renewal fee once you spend a set amount in the previous membership year. Common patterns are ‘waiver on ₹2 lakh annual spend’ or ‘₹5,000 fee waived on ₹1 lakh spends’. The waiver is usually applied automatically within one or two billing cycles; if it is missing from your statement, raise a dispute with customer care.

A joining fee is a one-time charge levied when the card is issued, while an annual fee recurs every membership year. On many Indian cards the joining fee is waived for the first year and the annual fee starts from year two. Lifetime-free cards charge neither. The two amounts can also be waived on condition of meeting a minimum spend, so compare the full-year cost, not just the headline number.

Credit card reward points are loyalty units you earn per ₹100 spent. Redemption value varies: cashback redemption is often ₹0.20–₹0.30 per point, while transferring points to airline or hotel partners can reach ₹0.50–₹1.00 per point. Most programs set the value in their terms, and points typically expire two to three years after they are earned, so check your expiry dates in the issuer app.

Foreign transaction markup, also called forex markup, is a fee banks add to international purchases, typically 1% to 3.5% of the transaction value plus the currency conversion cost. Some Indian cards charge zero markup, and RuPay cards abroad through Discover and JCB partnerships are often cheaper. Markup applies to online international spends too, not just physical swipes.

Lounge access is a benefit where your card grants free entry to airport lounges, either through brand programs like Priority Pass or Dragon Pass or the issuer’s own lounges. Cards list a fixed number of complimentary visits per year, usually four to eight domestic, and you show your card at the desk. Access applies to the primary and sometimes supplementary cardholders; guests are charged per visit.

Minimum income requirements vary by card segment. Entry-level and student cards in India often need ₹15,000–₹25,000 monthly income, mid-tier cards around ₹30,000–₹50,000, and premium cards ₹1 lakh or more per month. Banks also weigh your CIBIL score and existing debt. If you cannot meet an income bar, a secured card against a fixed deposit is the standard alternative.

To apply for a credit card online, open the issuer’s website or app, choose a card you qualify for, fill in personal, employment, and income details, and complete eKYC with Aadhaar OTP or video KYC. Keep PAN, Aadhaar, and recent salary slips or bank statements handy. Approval takes minutes for pre-qualified profiles and up to ten working days otherwise, after which the card is dispatched by post or courier.

Credit card approval in India takes anywhere from instant to ten working days. Instant approvals happen when the bank pre-screens you through existing relationships or PAN-based data, with video KYC completing the same hour. Fresh applications need document verification and a bureau check, typically three to seven working days. Physical card dispatch adds two to five more days; virtual card numbers often work immediately.

A good CIBIL score starts at 750 out of a 300–900 range. Above 750, most banks approve standard cards and premium cards become realistic. Between 700 and 750, approval odds are decent for entry and mid-tier products. Below 700, expect rejections or require a secured card. Scores are driven by on-time payments, low credit utilization under 30%, and a healthy mix of active accounts.

Credit card usage is interest-free only if you pay the full statement amount by the due date each cycle, which gives a grace period of roughly 20 to 50 days. Carrying a balance triggers revolving interest at 3% to 4% per month, about 36% to 48% per year, charged from the transaction date on most Indian banks. The minimum-due option is never interest-free.

Paying only the minimum due keeps your account current but leaves 90% to 95% of the bill rotating as high-cost debt. The bank charges revolving interest at 3% to 4% monthly from the date of each purchase, and interest itself attracts interest. Minimum due is useful only as an emergency move to avoid late fees and bureau reporting, not as a payment strategy.

A credit card cash advance should be avoided: the bank levies a cash advance fee of 2.5% to 3.5% of the withdrawn amount and starts charging revolving interest from day one, with no grace period. There is also usually no reward on these transactions. The only lower-cost emergency option is your debit card, and a regular ATM withdrawal from your own account.

For a large purchase, compare total cost: no-cost EMI is rarely actually free because the interest is baked into a higher product price or lost discount, while personal-loan interest runs 10% to 24% per year. Credit card EMI rates are often 12% to 15% per year plus conversion fees. If the merchant genuinely offers zero percent and you can pay the full bill, EMI beats a loan.

Closing a credit card can hurt your score because it shortens your average credit history and removes part of your total available credit, which raises your utilization ratio. If the card is annual-fee-free, keeping it dormant is usually better than closing it. Close only when a high fee cannot be waived and you have other cards to maintain history, and redeem any points before closure.

There is no fixed ideal number, but three to five cards suit most Indian spenders: one lifetime-free cashback card for everyday bills, one rewards card matching your biggest spend category, and one travel or fuel card. Each application adds a bureau hard inquiry, so apply spaced out, not together. More cards only help if you can track due dates and keep utilization low.

Yes, most reward points expire. Typical validity is two to three years from earning, though the exact rule differs per program. Banks notify expiry in the monthly statement and issuer app. Before expiry, redeem points for the highest-value option — often an airline or hotel transfer. Some programs allow partial retention by paying a small reactivation fee. Points earned from cash advances or fees never accumulate.

GST is a government tax on services in India, and a credit card is a financial service, so banks must levy 18% GST on the annual fee, late payment fee, over-limit fee, interest charges, and forex markup. It appears as a separate line on the statement. GST applies whether or not the fee is waived, and businesses with a GSTIN can often claim it back as input credit.

Indian petrol pumps add a 1% GST surcharge on fuel purchases, and many fuel cards waive or rebate this amount when you pay with the card. The waiver is usually capped per month, commonly ₹100 to ₹250, and may apply automatically or as statement credit. Some cards require fuel spends through specific networks or pumps, so read the terms and watch the cap, not just the headline percentage.

Contactless payments are considered safe because each tap generates a one-time cryptogram instead of exposing your card number, and small purchases under ₹500 generally skip PIN entry. Bank liability rules protect you from unauthorized transactions reported promptly. Keep a per-transaction contactless limit, enable transaction alerts, and if a tap is ever disputed, raise it in the app quickly while keeping the physical card evidence.

If your card is lost, freeze it instantly in the issuer app or call customer care, then file a written complaint noting the time. You are only liable for fraudulent charges until you report it, provided you report without undue delay. Banks issue a replacement with a new number and the credit limit usually carries over, though you must update auto-debit mandates with the new card.

Request a credit limit increase after three to six months of clean use: pay on time, keep utilization under 30%, and raise a request in the issuer app or by phone. A higher income with updated salary proof speeds up approval, and a strong score helps. Banks rarely exceed three to four times monthly income. A decline does not hurt your bureau record.

RuPay is an Indian network with wider domestic acceptance, no forex markup on some cards, and UPI linkage, but weaker international acceptance. Visa and Mastercard have the broadest global reach and better partner perks. Choose a card by its fee-to-rewards value first; the network only matters for where you travel. Holding one RuPay plus one Visa or Mastercard covers every scenario.

A lifetime-free card has no joining and no annual fee for as long as the account stays open, so it is genuinely cheaper than paid cards of similar tier. The trade-off is usually lower reward rates and fewer benefits like lounge access. Watch for charges that still apply: interest on carried balances, late payment fee, forex markup, and cash advance fee. For first cards, lifetime-free is the standard safe choice.