Question 1

What are credit card reward points worth?

Accepted Answer

Most credit card reward points in India are worth Rs 0.20-0.30 per point for statement credits or cashback. However, when redeemed for travel through bank portals, value increases to Rs 0.30-0.50 per point. Premium cards like American Express or HDFC Diners Club can offer Rs 0.50-1.00 per point for specific redemptions.

Question 2

How much interest do credit cards charge in India?

Accepted Answer

Credit card interest rates in India range from 24% to 48% per annum. Entry-level cards charge 36-42%, premium cards 30-36%, and super-premium cards 24-30%. These rates make credit cards one of the most expensive forms of borrowing. Always pay your full balance to avoid interest charges.

Question 3

Should I convert purchases to EMI or pay full amount?

Accepted Answer

Paying the full amount upfront is always better as you avoid 12-18% EMI interest charges and processing fees. Use EMI only for: essential large purchases you cannot afford immediately, genuine 0% offers with no hidden costs, or when you can invest the lump sum at returns higher than the EMI rate.

Question 4

What happens if I pay only minimum due on credit cards?

Accepted Answer

Paying only the minimum (typically 2-5% of balance) keeps your account in good standing but traps you in expensive long-term debt. On Rs 50,000 at 36% APR with 3% minimum payment, you'll take 4+ years to pay off and pay over Rs 35,000 in interest—70% of the original balance.

Question 5

Are credit card annual fees worth paying?

Accepted Answer

Annual fees are worth it if your total rewards plus utilized perks exceed the fee by at least 1.5-2x. For example, a Rs 5,000 annual fee card should generate Rs 7,500-10,000 in value. Calculate based on your actual spending patterns and realistically assess which perks (lounge access, insurance) you'll actually use.

Credit Card Calculators

Interest & Payments

Credit Card Interest Calculator

Minimum vs Full Payment Calculator

Credit Card EMI Calculator

Credit Card Late Fee Calculator

Rewards & Value

Credit Card Reward Points Calculator

Credit Card Annual Fee Break

Fuel Surcharge Waiver Calculator

Debt Management

Balance Transfer Calculator

About Credit Card Calculators