A simple glossary of common credit card terms for Indian users, including annual fee, billing cycle, minimum amount due, reward points, cashback, MITC, schedule of charges, forex markup, and more.
Credit Card Terms Glossary for Indian Users
Simple meanings of common credit card terms like annual fee, billing cycle, minimum amount due, reward points, cashback, MITC, schedule of charges, forex markup, and more.
Quick Answer
Credit cards come with many confusing terms: annual fee, joining fee, credit limit, billing cycle, minimum amount due, reward points, cashback, forex markup, lounge access, EMI, MITC, and schedule of charges. This glossary explains these terms in simple language for Indian users.
Use this page whenever you are reading a credit card review, bank card page, MITC document, schedule of charges, or reward terms.
Why This Glossary Matters
Many credit card mistakes happen because users misunderstand simple-looking terms.
For example, lifetime free does not mean every charge is zero. Minimum amount due does not mean you have paid the full bill. No-cost EMI may still include processing fee, GST, or reward loss. Reward points are not always equal to cash. Lounge access may need spend conditions. Fee waiver does not mean the card is always free.
Benchmarksutra uses this glossary to keep credit card reviews simple, consistent, and consumer-first.
Most Important Credit Card Terms for Beginners
| Term | Simple Meaning |
|---|---|
| Annual fee | Yearly cost of holding the card |
| Joining fee | One-time fee charged when the card is issued |
| Credit limit | Maximum amount you can spend of the card |
| Billing cycle | Period for which your transactions are counted in one bill |
| Statement date | Date your credit card bill is generated |
| Due date | Last date to pay the bill |
| Total amount due | Full amount you owe |
| Minimum amount due | Small minimum payment , not full bill payment |
| Reward points | Points earned on eligible spends |
| Cashback | Money returned for eligible spends |
| Redemption | Using your rewards |
| Forex markup | Extra charge on foreign currency transactions |
| EMI processing fee | Fee charged when converting purchases into EMI |
| MITC | Most important terms and conditions |
| Schedule of charges | Official bank fee list |
Minimum Amount Due Is Not Full Payment
Paying only the minimum amount due does not clear your credit card bill. It may only help avoid late payment status. Interest can still apply on the remaining unpaid amount. Beginners should ideally pay the full total amount due before the due date.
Credit Card Terms A to W
An add-on credit card is an extra card issued under the primary cardholder’s account. Usually, family members can use add-on cards. The bill is paid by the primary cardholder.
The annual fee is the yearly cost of holding a credit card. A card with an annual fee is worth it only if the rewards and benefits are higher than the cost.
APR means Annual Percentage Rate. It shows the yearly interest rate charged if you do not pay your credit card bill in full.
B
Balance transfer means shifting outstanding credit card dues from one card to another, usually for lower interest or easier repayment.
A bank statement shows transactions in your bank account. Banks may ask for it during credit card applications.
Billing cycle is the period for which your credit card transactions are counted in one bill.
Billing date, also called statement date, is the day your credit card bill is generated.
C
Cashback is a reward where you get money back for eligible spending. It may have caps, exclusions, or minimum transaction conditions.
This is the fee charged when you withdraw cash from an ATM using your credit card. Avoid this unless it is an emergency.
CIBIL score is a credit score used by banks to judge your creditworthiness. A higher score usually improves approval chances.
Credit card limit is the maximum amount you can spend on your card.
Credit utilisation means how much of your credit limit you are using. High utilisation for long periods may affect your credit profile.
D
Due date is the last date to pay your credit card bill without late payment charges.
Default means failure to repay your credit card dues as required.
Devaluation means the bank reduces the value of card benefits, such as rewards, lounge access, cashback caps, or redemption value.
E
EMI means Equated Monthly Instalment. You can convert some credit card purchases into monthly payments. Always check processing fee, GST, interest, reward eligibility, and final payable amount.
Excluded categories are transaction types that do not earn rewards or may have restrictions. Common examples include rent, wallet loading, fuel, utilities, insurance, education fees, government payments, and EMI transactions.
F
Fee waiver means the bank may waive the annual or renewal fee if you meet a required spend threshold.
Finance charge is the interest charged when you do not pay your full credit card bill.
Forex markup is the extra charge applied on foreign currency transactions, international websites, overseas travel spends, and global subscriptions.
Fuel surcharge waiver means the card may reverse or waive surcharge on fuel transactions, usually with limits and conditions.
G
Grace period is the time between statement generation and payment due date.
GST may apply to card charges such as annual fee, joining fee, renewal fee, EMI processing fee, redemption fee, late payment fee, interest, and forex-related charges.
I
The interest-free period is the time during which you do not pay interest on purchases, provided you pay the full bill by the due date.
Issuer is the bank or financial institution that provides the credit card.
J
Joining fee is the one-time fee charged when the card is issued. Some cards give welcome benefits against joining fee.
L
Late payment fee is charged if you do not pay at least the minimum amount due by the due date.
A lifetime-free credit card usually means no joining fee and no annual fee. Other charges may still apply.
Lounge access means the card may allow you to enter airport or railway lounges. Always check visit limits, spend conditions, guest access, and eligible lounges.
M
Merchant Category Code, or MCC, is a code used to classify merchant type. It can affect whether a transaction earns rewards.
Minimum amount due is the small portion of your bill that the bank asks you to pay to avoid late payment status. it does not clearyour full bill.
MITC means most important terms and conditions. It explainskey credit card terms such as fees , charges, interest , billing rules , payment terms , liabilities and default consequences.
N
Net annual value means the real value you get after subtracting card costs.
Formula: Net Annual Value = Realistic Annual Benefits - Annual Fee - Extra Charges
No cost EMI means the interest maybe adjusted or discounted, but it does not always mean zero cost.Check processing fee , GST , reward eligibility , product price , and foreclosure fee.
O
Outstanding amount is the total unpaid amount on your credit card.
Overlimit fee may apply if your spending exceeds your approved credit limit.
P
Payment due date is the last date to pay your credit card bill.
The primary cardholder is the main person responsible for the credit card account.
Processing fee is a charge for certain services, commonly EMI conversion or loan-on-card offers.
R
Redemption means using your rewards as cashback, statement credit, vouchers , products , air miles , hotel points , or gift cards.
Redemption fee is a charge applied when you redeem reward points.
Renewal fee is the fee charged from the second year onward for keeping the card active.
Reward points are points earned for eligible card spending. They are not always equal to cash.
Reward rate means how much reward you earn for spending.
Reward cap is the maximum reward you can earn in a period.
S
Schedule of Charges is the bank’s official fee list for a credit card.
A secured credit card is usually issued against a fixed deposit.
Statement credit means a reward or cashback amount is adjusted against your credit card bill.
Statement date is the date your monthly credit card bill is generated.
T
Total amount due is the full amount you owe for the billing cycle.
Transaction fee is a charge applied on specific transaction types , such as rent , wallet load, EMI , cash withdrawal or forex transactions.
U
Unbilled transactions are card transactions made after the latest statement was generated.
Utility payments include electricity, gas, water, broadband, mobile, and similar bills. Some cards cap or exclude rewards on these payments.
W
Wallet load means adding moneyto a digital wallet using a credit card.
Welcome benefit is a benefit given after card approval or first eligible transaction.
Waiver threshold is the spend amount required to waive annual or renewal fee.
A credit card term is not just a dictionary word.
Each term affects money, eligibility, rewards, charges, or risk.
That is why Benchmarksutra reviews Indian credit cards by checking fees, rewards, redemption, eligibility, hidden costs, benefits, and bank experience under a fixed scoring framework.
If a term is unclear in official bank documents, we do not guess. We mark it as: “Unknown - official data not clearly available.”
Final Takeaway
Information
Before applying for a credit card, understand the key terms first. At minimum, know annual fee, joining fee, renewal fee, credit limit, billing cycle, statement date, due date, total amount due, minimum amount due, reward points, cashback, redemption, forex markup, EMI processing fee, MITC, and Schedule of Charges.
The better you understand these terms, the easier it becomes to compare credit cards and avoid expensive mistakes.