Credit Card Benefits

There are a wide range of credit card benefits that let the cardholders save by offering value-back on every spend:

Rewards and Cashback

You can opt for rewards credit cards which offer reward points on every spend which can later be redeemed against varied options including product catalogue, travel bookings, airmile conversion, statement credit, etc. These cards may also have higher rewards earning rate for select category spends thus accelerating your savings on those spends. Similarly, many providers also offer cashback credit cards which offer cashback that is credited to your card account directly on every eligible spend, thus eliminating the redemption hassle.

Lifestyle Benefits

Credit cards also offer benefits on lifestyle-related expenses like online shopping, food delivery, movies, dining, etc. These benefits can be in the form of category discount offers or co-branded benefits on popular platforms like Amazon, BookMyShow, Myntra, Zomato, Blinkit, and others. Some credit cards also provide access to leading golf courses around the world with complimentary golf games and lessons every year.

Milestone Bonus

In addition to rewards, cashback and other offers, credit cards also come with milestone bonuses that you can avail on card joining, renewal or on reaching certain spending milestones. These may be in the form of bonus reward points, cashback, gift vouchers, annual fee waivers, complimentary memberships, travel tickets, discount offers, etc.

Travel Benefits

There are several travel-focused credit cards available with travel memberships with leading airlines, hotels and travel booking platforms like IndiGo, Club Marriott, MakeMyTrip and others. They not only offer access to loyalty programs, but also give travel benefits like air miles as reward points on spends, free flight or hotel vouchers, exclusive discounts on travel bookings, etc. Many credit cards also offer complimentary airport lounge access and concierge services to their users.

Insurance Benefits

Credit cards also come with insurance benefits including purchase protection, credit liability cover, travel insurance with accident coverage, overseas medical cover, etc. Some cards also offer roadside assistance and trip cancellation cover.

In addition to the above-mentioned benefits, credit cards also come with the following features and facilities for your convenience:

• Increased Purchase Power: Credit cards give easy access to credit, thus increasing your purchase power which comes in handy in case of financial emergencies.
• Worldwide Acceptance: You can use your credit cards outside India as well. Some cards also come with zero or low forex mark-up charges, thus reducing the overall cost of international purchases.
• Recurring Payments: Credit cards allow you to set recurring payments by giving standing instructions. This feature automates regular payments like rent, bills, installments, etc. 
• Interest-free Credit: Credit cards offer an interest-free period on purchases. This means you are not charged with any interest on your spends as long as you pay off the amount before the statement due date.
• EMI Facility: Credit cards allow you to convert big purchases into smaller EMIs which you can pay off in parts every month.
• Add-on Credit Card: The primary cardholder can share the credit card benefits and limit with immediate family members using the add-on card facility.
• Balance Transfer: You can move your existing high-interest debt that you might be struggling to repay to a new credit card to turn it into a more manageable payment option at lower costs.
• Building Credit Score: Mindful credit card usage and timely bill repayments can build your credit profile with a healthy credit history and score. A good score can translate into ease of getting a loan at a lower interest rate in the future.

Suggested Read: Best Credit Cards in India

Despite the wide range of benefits available, credit cards can only be useful and advantageous when used right. If used irresponsibly, credit cards can lead the users into a debt trap. So, here are some tips to ensure you use your credit card right:

• Choose a card based on your spending habits and requirements
• Be aware of all the credit card terms and conditions, including fees, charges, capping, etc.
• Do not overspend or make impulse buys and moderate your credit card limit usage
• Repay your monthly dues in full by the due date to avoid late payment and associated penalty charges
• Avoid making credit card cash advances/atm withdrawals to avoid hefty interest charges

The credit card eligibility criteria depend on the type of card you are applying for and the card provider. General eligibility criteria and documents required to apply for a credit card is as follows –

The credit card users must also have a high credit score and must meet the minimum salary requirement as per the credit card variant.

You can apply for a credit card online as well as offline to get access to its benefits by either visiting the official card provider website or the nearest bank branch. You can also search and apply for a suitable credit card on Paisabazaar by following the steps given below: 

Step 1: Enter your mobile number
Provide your mobile number in the form given on this page to start the credit card application process.

Step 2: Verify OTP and check available offers
You can find pre-qualified offers on the screen once you register your mobile number and provide the OTP.

Step 3: Select preferred credit card
Compare available options and select the credit card whose benefits suit your requirements the best.

Step 4: Apply and provide documents
Apply for the credit card and provide the required documents for a smooth application process.

Click on the preferred credit card provider to know about their offerings with the best credit card benefits and other related details:

Q. Can I get a credit card online?
A. Yes, you can apply for a credit card online by visiting the official website of your preferred bank.

Q. What is a credit card limit?
A. This is the maximum amount that you can spend on your credit card. When you have a high limit for the credit card, it allows you to spend more which helps in improving your credit score.

Q. What is a premium credit card?
A. Premium credit cards offer extra benefits on lifestyle, travel, entertainment, dining, etc. and they also charge a substantial annual fee. International airport lounge access, concierge service, air accident insurance are some premium card features.

Q. What is the difference between a credit card and a debit card?
A. The basic difference between a credit card and a debit card is that debit card is connected to your savings or current account whereas credit card is a type of loan taken from the bank. In case of a debit card, the amount is directly deducted from the connected savings/current account and there are no interest charges on its usage. However, in the case of a credit card, the amount is deducted from your credit limit. If you do not pay the amount in full and on time, interest will be applicable on the outstanding amount.