A Credit Card is a plastic card through which you can make payments hassle-free. But before we get to that part, there is something known as the Credit Card Agreement, which outlines the conditions, terms, pricing details, and penalties relating to the use of the card. These are the terms a customer must adhere to if they wish to keep using the card without having their credit affected. Every issuer has its own set of credit card agreements, even the best credit card in India. 

Some may not even realise when they automatically agree to the terms mentioned in the agreement. The credit card issuer has complete power over these terms and conditions, and the room for negotiation is mostly non-existent. The issuer can change the terms with advance notice, and if a customer keeps using the card, it is believed they have agreed to the changes. Some issuers may allow you to retain and reject certain agreement parts.

What is Inside a Credit Card Agreement?

A Credit card agreement is not easy to read and understand. They are usually long and contain jargon that common folks may find difficult to comprehend. But understanding it is essential because, ultimately, a credit card agreement is a legally binding agreement.

Pricing Information

It is the most important section of any credit card agreement. The agreement will always list the pricing information on how a customer will be charged credit card interest rates and fees. In addition, a good credit card agreement will at least mention the following: 

  • The annual percentage rate on each kind of balance – transfers, purchases, cash advances, and penalties, if that applies.
  • Variable rate, to which an index rate is tied
  • Information regarding the finance charges, the minimum rate of finance charge, the calculation method used for finance charges, and when you won’t be charged the finance charge
  • The grace period
  • Fees you will be charged and when they will be charged (for example, finance charges, annual charges, late credit card payment charges).

Read Also: National Electronic Funds Transfer 

Other Information About the Credit Card

Aside from the pricing information mentioned above, the agreement will also list all the other important information that needs to be known for its use:

  • The different kinds of transactions that can be made using the credit card
  • The credit card limit and details on how the issuer can change the limit
  • Information on the use of a credit card in another country
  • The calculation method of the minimum payment
  • The options available for paying the credit card balance and how the payments are applied are listed below.
  • If the data is shared with credit bureaus, how is it done?
  • The specifics of what information about the credit card is shared and what is kept private
  • The agreement should also mention the details of what the issuer can make to the credit card holder’s account.
  • It should also specify a default and what happens if you make a default.
  • How to handle the credit card if it’s lost?
  • What are the steps to close the account?
  • The agreement should also list what needs to be done if there is a dispute between you and the credit card issuer regarding the billing.
  • The agreement can also list the authority or legal body which enforces the credit card agreement.
  • If your credit card issuer has a reward system, the agreement will also mention how to earn and redeem the rewards.

Where to Find Your Credit Card Agreement?

Every credit card issuer will have a copy of the credit card agreement uploaded in the online form on their website. And by every, we mean every issuer, the best credit card in India, and even the small issuers. In addition, the issuer will also provide you with the credit card agreement for your account when requested. It can be done online or by going to the issuer’s office, whichever works best and is available.

Key takeaways

  • A Credit Card agreement contains a document specifying clear provisions about the credit card.
  • For simplicity of the agreement, federal laws specify that the agreement’s written language is easy to read and understand by the general public.
  • The terms and conditions discussed in the advertisement may be misleading relative to the whole Credit Card Agreement.

Read Also: What is Mobile Banking?


A credit card agreement is a legally binding document that explains the basics of pricing, how fees are calculated, what happens if you don’t pay on time, and what you need to do to use the different services offered by the card issuer. 

It is advisable to get the document either from an online source or by requesting the credit card agreement from the issuer and going through the details to understand the points listed. Even the best credit card in India has agreements, so customers should always know what the issuer provides.