Due to fears of default rates going up in the wake of high inflation and global financial troubles, banks and card issuers in India are slowing in issuing new credit cards. Industry professionals expect the the annual growth rate in the industry could slip to 20% by the end of FY09 from 35% being recorded over the last few years.

The ongoing credit crisis has prompted banks to take a cautious approach as far as lending is concerned. They are now increasingly looking at tapping the mid and high income group to ensure repayment.

As more and more people are signing up for credit cards, banks are offering their own credit cards in attractive packages. They give excellent discounts, incentives such as cash-back, rewards like gift certificates, freebies, and additional point systems.

Many airlines except frequent flyer coupons that offers a much bigger savings. As they get together with the co-owners in their business.

Let’s understand the fine print before signing up;

1. Be well informed about details such as the fixed, “hidden” rates each month.

2. The annual fee is an important factor. Annual fees, applied by some banks, are waived by others. Especially for credit card holders who pay their whole balance every month.

3. Other fees you must learn about are return-item fees, over-the-limit fees, late payment fees, and set-up fees.