Top Credit Cards in India

What is APR on credit cards?

APR is the annual percentage rate that reflects the true cost of borrowing on a card when you revolve balances. It combines the interest rate and certain fees to show the yearly cost. In India, APRs typically vary by issuer, card tier and your risk profile, and can be different for retail transactions, cash advances and EMI conversions. The best way to reduce APR impact is to pay the statement balance in full every cycle, avoid cash advances, and use no-cost EMI only when the merchant or issuer explicitly offers it with clear terms.

How to avoid or offset the annual fee?

Most issuers provide a spend-based waiver on the annual fee. If your annual spending crosses a threshold, the fee is reversed on the next cycle. Alternatively, some cards are lifetime free through authorized partners during limited-time campaigns. You can also offset the fee by calculating your net rewards; if cashback, reward points or partner vouchers exceed the fee over a year, the effective cost becomes neutral or positive. Always check the welcome benefits, renewal vouchers, lounge entries and milestone rewards while deciding whether to keep or upgrade a card.

Do cards offer lounge access and travel perks?

Many mid-range and premium Indian cards include domestic lounge access via RuPay, Visa or Mastercard networks; select cards provide international access through Priority Pass or DragonPass. Perks often include complimentary entries, fuel surcharge waivers, airline discounts, hotel status or co-branded benefits. Read the fine print: entries may be capped per quarter, supplementary cards may have separate limits, and access can depend on network variants. Keep your card’s network and eligibility handy when visiting lounges to avoid surprises at the gate.

How do cashback and reward points really work?

Cashback credits usually appear as statement adjustments and reduce your payable amount. Reward points accrue on eligible transactions and can be redeemed for flights, hotels, vouchers or direct statement credit depending on the program. Point valuations differ widely—air miles and travel portals can yield higher value than generic catalogue redemptions. Many programs exclude fuel, wallet loads, rent or government payments from earning rewards. Check category accelerators (like 5X online spends) and pay attention to monthly caps to avoid missing out on expected earnings.

What about fuel surcharge waivers and bill payments?

Fuel transactions attract surcharge and GST at the pump; many cards provide waivers up to a cap per cycle at partner networks or select outlets. Ensure the transaction is processed as fuel MCC to qualify. For utility bills and rent, some issuers offer points or cashback, but others exclude them or apply different rates. Automate essential bill payments with due-date reminders to avoid late fees. If using apps for rent or utilities, confirm whether the transaction is categorized as a wallet or P2P transfer, which may not earn rewards.

Is converting purchases to EMI a good idea?

EMI conversions spread large purchases into affordable monthly payments. The trade-off is interest and processing fees, which increases total cost. Before converting, compare the effective APR to alternative financing or saving-first strategies. If a merchant offers true no-cost EMI, confirm that the discount or subvention is reflected and there are no hidden fees. Use our Credit Card EMI Calculator to estimate EMI, interest and fees with your issuer’s rates, and set reminders to prepay if charges allow without penalties.

Does closing a card hurt my credit score?

Closing your oldest card can reduce average account age and potentially lower your score temporarily. It can also increase utilization on remaining cards if limits drop. Instead of closing, consider downgrading to a no-fee variant or reducing the limit to a comfortable level. If you do close, clear pending EMIs and rewards first, redeem points, and obtain written confirmation. Keep a healthy mix of credit (cards and loans), maintain low utilization under 30%, and avoid bunching multiple closures and new applications within the same quarter.

How can I safely increase my credit limit?

Issuers periodically offer limit enhancements based on your usage and payment history. You can also request a review by submitting income documents. A higher limit may improve utilization ratio and hence your score, but don’t see it as permission to overspend. Accept increases that match your comfort, and monitor alerts for unusual activity. If you receive a temporary festive-limit boost, note the end date and any special terms. Limit changes should not affect rewards categories but can alter your risk profile if spending habits shift.

What are common exclusions in rewards programs?

Typical exclusions include cash advances, wallet loads, fuel, government and rental payments, fee payments, and some education transactions. International transactions may earn differently, and dynamic currency conversion can reduce value. Read your issuer’s MCC (merchant category code) rules, caps per statement cycle, and partner lists. For co-branded cards, ensure you transact on eligible portals or apps to unlock accelerated earnings. Keep screenshots of offer terms, as short-lived promotions can change without notice and customer support may ask for proof during disputes.

How should I manage multiple cards?

Tag each card to a spending category—groceries, fuel, travel, dining—based on their strongest rewards. Turn on app notifications, auto-pay the total amount due every cycle, and set calendar reminders. Review statements monthly for erroneous charges or duplicate postings. If you carry balances, prioritize repayment on higher APR cards first. Consolidate cards only if their value overlaps and you can’t utilize benefits fully. Responsible multi-card management improves rewards yield without increasing risk or stress.

Any quick safety checklist?

Disable international transactions and contactless by default if not required; enable just-in-time for travel or specific purchases. Avoid sharing OTPs, CVCs or full card numbers over calls or messages. Use issuer apps to lock/unlock cards and set per-transaction limits. Prefer secure gateways and official merchant apps. Report suspicious activity immediately and request card replacement if compromised. Keep helpline numbers saved and monitor statements proactively—quick action limits loss and speeds up resolution.