What are Credit Cards: Features, Advantages, Eligibility Conditions

byMehak BaglaLast Updated: December 28, 2023

There are times when you need some extra funds than what you already have in your pockets. To fulfill such needs, various financial institutions offer you the option of borrowing money from them with the use of credit cards.

Continue reading to learn more about what is a credit card, credit card’s features, and credit card’s advantages and disadvantages.

What is a Credit Card?

A credit card is basically a financial tool that allows you to borrow money from your bank, in order to meet your necessary expenses, whilst giving you the luxury of repaying the amount later. A credit card offers you a line of credit that can be used to make necessary payments. However, this amount must be paid back to the bank on the due date as mutually agreed upon by the bank and the card holder.

Credit Cards: Eligibility Conditions

You are eligible to apply for a credit card only if you meet the following credit card eligibility conditions-

  • You are an Indian citizen, at an age equal to or more than 18 years
  • You are either a salaried professional or self-employed
  • You have a fixed mode of income (specific conditions vary from bank to bank)
  • You have a good credit score (700 or more)

Various banks or financial institutions go through your financial backgrounds and review your credit history, considering which they offer you to buy a credit card following a simple process. These cards are termed pre-approved credit cards.

Additionally, there are also various tools like credit card eligibility checkers that help you check credit card eligibility online in a few minutes!

Credit Cards: Documents Required

Apart from the above-mentioned credit card eligibility conditions, you should have the following documents to apply for a credit card

  • ID Proof (PAN Card, Aadhar Card, Passport or Voter’s ID)
  • Address Proof (Aadhar Card, Electricity Bill, or Telephone Bill)
  • Income Proof (Salary certificate, Salary slip, Employment letter, ITR statement, etc.)

Features of Credit Cards

Here are some of the important features of a credit card that you must be aware of-

  • A credit card comes with a bank-approved credit limit. This limit defines the amount that the credit holder can spend using that card
  • The credit amount must be paid back by the holder to the bank on the due date, which is mostly after 30 days of making the purchase
  • The limit on the credit card is decided by your bank, depending on your credit score and credit history
  • In its appearance, a credit card is a thin, rectangular, plastic, or metal card that can be swiped to make payments
  • Each credit card has a grace period, which is the time in which you should repay the amount borrowed from your credit card limit to the bank. Along with this grace time period, you also get 15-20 days’ time between the date when you receive your statement and the due date for making the payment. Hence, you get around 45-50 days for making the payment of your credit card

Advantages of Using a Credit Card

Confused about buying a credit card? Here are some reasons that you should definitely go ahead-

  • Credit cards are a great way to build a good credit history for yourself and expand your buying power
  • Using a credit card offers you increased flexibility while making payments
  • Having a good financial history will help you establish a good credit score, thereby making you eligible for availing the benefits of other financial products like loans and mortgages
  • As you use a credit card frequently, you can collect some points on every purchase that you make. These points can later be redeemed while making payments on travel or other e-commerce platforms
  • As compared to other modes of payments, credit cards are considered a more secure way of making financial transactions
  • If the need arises, you can also convert your credit purchases into EMIs and repay the billed amount gradually

Disadvantages of Using a Credit Card

Listed below are some of the reasons that people think twice before getting themselves a credit card-

  • A credit card is issued with the condition of paying back the spent amount to the bank, along with the applicable amount of interest on the money spent
  • If somehow, you fail to make your credit payments to the bank in time, you will have to bear fees owing to high credit card interest rate; which may eventually lead you to fall in debts
  • Missing out on your credit payments to the bank, or even maximizing your credit payments may drop your credit score

Paytm HDFC Bank Co-Branded Credit Cards

India’s leading digital ecosystem for consumers and merchants, Paytm has launched a range of consumer credit cards in partnership with HDFC Bank, the largest private sector bank in India.

Most prominent proposition of the ‘Paytm HDFC Card’ is that it offers various rewards in the form of unlimited benefits. Paytm HDFC credit card users can get upto 5% cashback on Paytm Movies, Travel, Shopping & upto 3% cashback on most used categories like mobile recharges & bill payment of all sorts on Paytm app. For all other retail spends, users get upto 1% Cashback.

As the ‘Welcome Benefit’, users get a joining bonus in the form of Rs. 1000 cashback and free Paytm First membership with benefits worth 75K. Additionally, the following rewards are offered on the Paytm App-

  • Upto 5% Cashback on Paytm Movies & Mini Apps
  • Upto 2% Cashback on all Paytm spends like bill payment & recharges
  • Upto 1% Cashback on all other retail spends 

The HDFC online banking platform offers the following rewards-

  • Upto 5% Cashback on Amazon, Flipkart, Apple, MakeMyTrip via HDFC Smartbuy
  • No cost EMI
  • Upto 5% Cashback on utility bills on Smartpay
  • Cashback of Rs. 3000 on PayZapp

Apart from all this, various milestone and lifestyle benefits in the form of Gift Voucher worth INR 500 upon spending INR 50,000 per quarter and 8 free airport lounge access are also offered.

Which Credit Card is Right for You?

Catering to various needs of the people, there are various types of credit cards available with financial institutions. Depending on your purpose of buying one, you can choose from the given list of various types of credit cards-

  • For the travel addicts– Credit cards for travel are the ones that suit all your travel needs, ranging from airline bookings to hotels and cabs. You can earn reward points on every purchase that you make and use them to make more bookings in the future!
  • For your transportation needs– Fuel credit cards are meant to reduce your transportation costs. These cards help you avail of fuel surcharge waivers; thereby allowing you to make substantial savings on your fuel expenses.
  • For additional discounts– Reward credit cards offer huge rewards on your spending. You can earn bonus points on every purchase and redeem them to avail discounts on your future purchases.
  • For shoppers– Shopping credit cards allow you to shop at various partnered stores, whether online or offline. This card offers you various discounts in the form of cashback, discount vouchers, among many others.
  • For extra savings– Secured credit cards can be availed against fixed deposits and allow you to benefit from attractive interest rates. Using this card will help you build a better credit history and grow your credit score.

Apply For Credit Card


How can I check my personal loan application status?
You can check your personal loan application status using both online and offline methods. To check the status online, you need to log in to your bank’s official website and provide the required details such as your name, mobile number, application reference number, and your date of birth. Alternatively, you can also contact your bank’s customer support staff through telephone or visit the bank directly to find out your personal loan status.

Is it possible to check personal loan status online?

Yes, you can check your personal loan application status online. All you need to do is log in to your bank’s official website and provide the following information mentioned on your application document-

  • Application reference number
  • Applicant’s Date of Birth
  • Applicant’s Name
  • Applicant’s Mobile Number

What should I do if I don’t have online ways to check my personal loan status online?
If you don’t have access to the online methods to check your personal loan status, you can either contact your bank’s customer support staff or visit your bank’s branch directly to find out your personal loan status.

What happens when you apply for a credit card?
When you apply for a credit card with any bank, your application is reviewed with a complete check on your credit history. Once all the provided information is approved, you will receive the physical credit card; using which you can begin purchasing. However, as you make purchases on your credit card, you must ensure that the borrowed amount is repaid within the stipulated time period in order to avoid any penalty.

How to apply for a credit card?
Before applying for a credit card, you must decide which one you wish to opt for, from the various types of credit cards available depending upon your spending needs. After making the comparison, you can either visit a bank’s official website to apply for a card. You will then be asked to fill in the required details and upload various documents. Post this, you will be notified of the status of your application in a few days.

What is the maximum limit on a credit card?
Each credit card has a different limit. This limit is decided by the bank depending on your financial situation and your credit history.

What is the minimum credit score required to get a credit card?
To be eligible for getting a credit card, you must have a credit score of at least 650 points.

Will I be eligible for a credit card even if I am not working?
Yes, you will be eligible for a credit card even if you are not working. However, you must have a substantial amount of cash inflow into your bank account on a monthly basis to get a credit card. Additionally, you should also meet all the other credit card eligibility conditions.

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