What is a Credit Card?
A credit card is a powerful financial tool that allows you to borrow money from a bank or financial institution up to a pre-approved credit limit. Unlike a debit card, which deducts money directly from your bank account, a credit card lets you make purchases even with zero bank balance — as long as you repay the borrowed amount by the due date.
How Does a Credit Card Work?
✔ Swipe, Tap, Insert, or Enter Details
Use your card at a store or online.
✔ Transaction Authorization
The merchant asks your bank to verify card validity and available limit.
✔ Bank Approval
If everything is valid, your bank approves the payment instantly.
✔ Payment to Merchant
Your bank pays the merchant on your behalf.
✔ Monthly Statement & Repayment
You receive a bill. Pay it by the due date to avoid interest or penalties.
Types of Credit Cards
✔ Basic Credit Cards
✔ Secured Credit Cards
✔ Rewards Credit Cards
✔ Cashback Credit Cards
✔ Travel Credit Cards
✔ Premium Credit Cards
✔ Co-Branded Credit Cards
✔ Business Credit Cards
Credit Card Eligibility Criteria
✔ Age
18+ (typically 21–65 for most banks)
✔ Nationality
Indian Residents, NRIs (for select cards)
✔ Employment Status
Salaried or Self-Employed with income proof
✔ Minimum Income
₹15,000 – ₹25,000 per month (higher for premium cards)
✔ Credit Score
650+ preferred (higher score = better cards & higher limits)
✔ Credit History
No major defaults, late payments, or high outstanding debt
Credit Card Interest Rates in India
| Card Type | Interest Rate (p.a.) | APR (p.a.) |
|---|---|---|
| Regular Cards | 29.88% – 43.20% | 33.88% – 49.20% |
| Travel Cards | 32.88% – 42.20% | 36.88% – 48.20% |
| Premium Cards | 23.88% – 38.20% | 27.88% – 44.20% |
| Cashback Cards | 34.80% – 44.00% | 38.80% – 50.00% |
| EMI Cards | 12.50% – 36.00% | 16.50% – 40.00% |
Documents Required for Credit Card Application
Identity Proof
Aadhaar, PAN, Passport, Voter ID, Driving Licence
Address Proof
Utility bill, Aadhaar, Passport, Rent Agreement
Income Proof
Salaried: Last 3 months’ salary slips, bank statement, Form 16
Self-Employed: ITR, business proof, audited financials
PAN Card
Mandatory for all applicants
Photograph
1–2 passport-size photos (offline applications)
Fees & Charges on Credit Cards
| Charge Type | Description | Typical Range |
|---|---|---|
| Annual Fee | Yearly membership fee | ₹0 – ₹5,000+ |
| Renewal Fee | Charged after first year | ₹0 – ₹2,000+ |
| Cash Advance Fee | ATM withdrawals using credit card | 2.5% – 5% |
| Foreign Transaction Fee | Spending abroad or in FX online | 1% – 3% |
| Late Payment Fee | Missing bill due date | ₹100 – ₹500 |
| Over-limit Fee | Exceeding credit limit | ₹250 – ₹500 |
| Minimum Payment Charge | Charge for paying less than minimum | ~5% of amount |
| Returned Payment Charge | Failed payments | ₹250 – ₹500 |
| Replacement Fee | New card for lost/damaged one | ₹100 – ₹500 |
How to Build a Healthy Credit Score
✔ Pay Your Bills on Time
Even one late payment can impact your score.
✔ Keep Credit Utilization Below 30%
Low usage increases your score faster.
✔ Avoid Applying for Many Cards at Once
Too many inquiries reduce your credit rating.
Smart Spending Tips
✔ Track Your Budget
Use apps or card statements to monitor expenses.
✔ Spend Responsibly
Use your card only for planned payments you can repay.
✔ Pay More Than Minimum Due
Helps reduce interest and improve credit score.
How to Apply for Credit Cards Through Bharat Finserv
Applying through Bharat Finserv is easy, transparent, and fast:
✔ Visit the Bharat Finserv platform
(If you want, I can write this step using your website link once finalized.)
✔ Select “Credit Cards”
Navigate to our credit card section.
✔ Fill Basic Details
Enter your income, employment type, and location.
✔ View Best Offers
Instantly compare credit card options from top banks.
✔ Choose Your Ideal Card
Check features, fees, rewards, limits, and eligibility.
✔ Upload Documents
Submit ID, address, and income proof.
✔ Verification & Approval
Your application is processed by the bank, and you may receive calls for quick verification.
Need Help Choosing the Right Credit Card?
📞 Call Bharat Finserv
📱 Chat on WhatsApp
Our experts help you compare multiple banks, benefits, rewards, and interest rates to choose the perfect credit card based on your spending habits.