One important three-digit figure that indicates your trustworthiness is your credit score. Before granting credit cards or loans, lenders check it. Your credit score is influenced by a number of elements, and credit cards are one of the main ones. Here’s how:
| Card Name | Minimum Salary (₹/Month) | Annual/Joining Fees (₹ + GST) | Key Benefits | Welcome Bonus | CIBIL Score Required | Foreign Currency Markup (%) |
| IndusInd Bank Platinum Aura Edge | 75,000 | Nil / 500 | 4X Points on Departmental Stores, 2.5X on Airlines, Electronics | No | 700+ | 1.8% + GST |
| ICICI Bank Accelero Credit Card | 50,000 | 499 / 499 | Free Roadside Repair, Car Wash | No | 750+ | 3.5% + GST |
| HDFC Bank MoneyBack+ Credit Card | 20,000 | 500 / 500 | 2 CashPoints per spend | 500 CashPoints | 750+ | 3.5% + GST |
| HDFC Bank MoneyBack Credit Card | 25,000 | 500 / 500 | 4 CashPoints per spend | 500 CashPoints | 750+ | 3.5% + GST |
| HDFC Business MoneyBack Credit Card | 50,000 | 500 / 500 | 4 CashPoints per spend | No | 750+ | 3.5% + GST |
| HDFC Tata Neu Plus Credit Card | 25,000 | 499 / 499 | 5% Cashback as NeuCoins | 499 NeuCoins | 750+ | 3.5% + GST |
| HDFC Tata Neu Infinity Credit Card | 1,00,000 | 1499 / 1499 | 1.5% Cashback as NeuCoins | 1,499 NeuCoins | 750+ | 2% + GST |
| HDFC Bank Freedom Credit Card | 12,000 | 500 / 500 | 1 Reward Point per spend | 500 Reward Points | 750+ | 3.5% + GST |
| HDFC Platinum Edge Credit Card | 1,75,000 | Nil / Nil | 2 Reward Points per ₹150 spent | No | 750+ | 3.5% + GST |
| HDFC Paytm Business Credit Card | Nil | 500 / 500 | 1% Cashback | No | 750+ | 3.5% + GST |
| HDFC Paytm Select Business Credit Card | Nil | 1000 / 1000 | 1% Cashback | No | 750+ | 3.5% + GST |
| HDFC Times Platinum Credit Card | 35,000 | 1000 / 1000 | 3 Reward Points per ₹150 spent | No | 750+ | 3.5% + GST |
| HDFC Times Titanium Credit Card | 25,000 | 499 / 499 | 2 Reward Points per ₹150 spent | No | 750+ | 2% + GST |
| HDFC Easy EMI Credit Card | 10,000 | 250 / 250 | 2.5% Cashback on Online Spends | 500 CashPoints | 750+ | 3.5% + GST |
| HDFC Doctor’s Superia Credit Card | Nil | 1000 / 1000 | 3 Reward Points per ₹150 spent | 1000 Points | 750+ | 3.5% + GST |
| HDFC Retalio Credit Card | NA | 499 / 499 | 2X Points on Offline, 4X Points on Online | ₹500 Gift Voucher | 750+ | 3.5% + GST |
| HDFC Pinelabs Credit Card | Nil | 499 / 499 | 4X Points on E-com & POS Spends | No | 750+ | 3.5% + GST |
| AU Bank Altura Plus Credit Card | NA | 499 / 499 | 2X Reward Points per ₹100 spent | ₹500 Vouchers | 720+ | 3.49% + GST |
| Kotak Fortune Gold Credit Card | 25,000 | Nil / Nil | Basic Rewards | No | 700+ | 3.5% + GST |
| IDFC First Classic Credit Card | 25,000 | Nil / Nil | 6X Online, 3X UPI, 10X Incremental Spends | Welcome Voucher | 750+ | 3.5% + GST |
1. Payment History (Most Important Factor)
Your repayment record, including credit card bills and loan EMIs, holds the highest weight in credit score calculations. Timely payments boost your score, while delays or defaults damage it.
Missing payments are reflected in your credit report under ‘Days Past Due’ (DPD), negatively impacting your score.
- A single missed payment can significantly lower your score.
- Always pay the full amount due on or before the due date.
2. Credit Utilization Ratio (CUR)
Credit utilization ratio (CUR) is the percentage of your total available credit that you use.
- A lower CUR indicates responsible credit management.
- Keep CUR below 30% for a positive credit impact.
- If you have one credit card, request a credit limit increase or get another card to balance usage.
- Spreading expenses across multiple cards helps maintain a low CUR.
3. Length of Credit History
- The longer your credit history, the better it is for your score.
- Your first credit card builds your credit history. Keeping it active benefits your score.
- Closing old credit accounts reduces the average age of your credit, negatively affecting your score.
4. Hard inquiries from new credit applications
- These can lower your score temporarily.
- Multiple applications in a short period can harm your credit, so maintain a 4-6 month gap.
5. Credit Card & Debt Management
- Pre-approved offers don’t impact your score. Credit cards can help, but if mismanaged, may lead to debt and poor credit health.
- Pay your bills in full to avoid interest charges.
- If struggling with payments, convert your dues into EMIs instead of paying the minimum amount.
- Late payments lead to penalties, high interest rates, and a lower credit score.
Common Myths vs. Facts About Credit Cards and Credit Scores
| Myth | Fact |
| Credit cards lead to debt | Only if mismanaged; paying bills in full prevents debt issues. |
| Having one card is best | Multiple cards help maintain a low CUR if managed properly. |
| Credit limit increase is bad | Higher limits reduce CUR and may improve your credit score. |
Conclusion
Credit cards can impact your credit score positively or negatively based on responsible use. Key practices include timely payments, low CUR, and spaced-out applications to maintain a good score, enhancing future credit access.