r2i forum

I never had a credit card in India. I have recently R2I and I would like to get one to book for travel, pay electricity and phone bills etc.

How should I go about getting a credit card in India? What is the best cash back/rewards credit card here?

(sorry if this has been previously discussed, please direct me to the appropriate thread, I searched first few pages and didn't find such thread)

Thank you.

Hello Tinu.

Getting a credit card depends on factors like job history and salary, credit status and assets.
If you're not working or have not yet built up credit status, many banks offer credit cards in exchange for a fixed deposit. This means that if you make a deposit of 10 lacks, you might be able to get a credit line of 50-100% of your deposit. Your deposit dies get locked in and can't be cashed out till the card is paid off of course. Some banks issue these cards without delay- you can walk out with the card from the branch itself and this might be a good first card to try out.

Here is one example:

http://www.icicibank.com/Personal-Banking/credit-card/credit-cards.html

tinu,
Congratulations on your R2I.

Just go to the bank where you had your NRI account for years, or any other bank where you have good relationship with the manager/staff. Tell them that you will make an FD for Rs. 3 lakhs and need a secure credit card, plus ad on if necessary. I would suggest for a new user not to have a limit of more than 3 lakhs. You will get 100% of your deposit as limit, as long as you keep paying bills on time and fully. Plus your FD will earn interest too. Check on the details of if your FD earns full interest or only for monthly available deposit.

You will get the card in a week. I got mine this way in 6-7 days. Don't take Maestro or other fancy ones for common purchases. Visa or Master card only.

But in reality, between cash, net banking and debit cards, these credit cards are of not much use. At least for me. I get better rate with cash in most cases, so don't bother much to use credit card at all.

- K

The one main difference between a debit card and a credit card is disputing a charge. If a card is lost, stolen or otherwise used in a fradulent manner, what can a card holder do in India? Has anyone gone through this experience? In US, I have disputed a charge few times and the credit card company would immediately give me credit for the amount while recovering the money from the merchant. How does this happen in India?

In case of a debit card, I am sure the bank won't care as it it takes the money from your bank account in real time. Similar with secure credit card. It can always recover the charge from you instead of the fraudester or the merchant. Since recovering money from you is so easy for the bank, I am sure a wrong charge on your debit card is same as money lost. That's one reason I want to get an unsecured credit card with low limit. In the worst case scenario where I see a fraudulent charge and the bank won't listen to me, I can always default in the repayment.

I recenly read a story where someone's debit card was stolen and used within 20 minutes and card holder knew about it when he received an SMS. Too late to call the bank and cancel the card. I am sure the money is lost.

r2i-mumbai;472203The one main difference between a debit card and a credit card is disputing a charge. If a card is lost, stolen or otherwise used in a fradulent manner, what can a card holder do in India? Has anyone gone through this experience? In US, I have disputed a charge few times and the credit card company would immediately give me credit for the amount while recovering the money from the merchant. How does this happen in India?.

Not a lost card but once I noticed an extraneous transaction. I immediately sent an email message to the card issuer. Promptly they took off the transaction from the account but asked me to send a form duly signed disputing the transaction in order to investigate it further. I sent in the form and that was the last I heard of it.

Not directly related to the OP but wanted to share.

The petrol pumps in India try to cheat consumers in different ways. One is not to reset the counter to zero before starting the fill up. This is easy to spot and avoid.

Second one is a trick and I was a victim. Once the car is filled up, the attendant ask you to move forward, even when there are no vehicles behind you. I handed over the credit card and they add 300-400 rupees to the bill and charge the card. By that time the pump is reset and you don't remember the final figure. Since my bill always comes around 2000/fill up, I fought with the attendant and got Rs 200 back. I still think he ripped me off for Rs 200+. Next time onward I plan to use cash at pump or write down the number on paper. The thugs have smart ways to fool the consumers.

In India the credit card machine is not connected to the pump. It is offline and the attendant walks around with the swiping machine.

dbs;472836Not a lost card but once I noticed an extraneous transaction. I immediately sent an email message to the card issuer. Promptly they took off the transaction from the account but asked me to send a form duly signed disputing the transaction in order to investigate it further. I sent in the form and that was the last I heard of it.

Was that a credit card or debit? If credit, was it secured or unsecured?

r2i-mumbai;472858Was that a credit card or debit? If credit, was it secured or unsecured?

That was a credit card from Citi.

'secured or unsecured?' sorry, do not understand that!!

dbs;472959That was a credit card from Citi.

'secured or unsecured?' sorry, do not understand that!!

By secured I mean was it issued against some kind of a deposit with the bank? Such deposits can not be withdrawn unless you pay down the balance on the card. It is generally not possible to default on these cards as banks already has your money.

Unsecured cards issued are purely backed by cardholder's credit. It is possible to default on these cards if you believe you have been charged fradulently and bank is not responsive to your queries.

dbs;472959

'secured or unsecured?' sorry, do not understand that!!

This is unique to US, When I first landed in US,I deposited $300 to get a secured credit card to grow my credit score.

Once you have some decent credit score, then you can apply for normal credit card.