Credit Card

What Is A Credit Card?

Banks and financial entities issue credit cards. They allow users to borrow up to a credit limit for purchases or cash. Credit cards charge interest if the debt still needs to be paid off by the due date. In contrast, debit cards withdraw money directly from the user’s bank account.

Credit cards have various benefits. In addition to being convenient and safe, they allow in-person and online business. Many credit cards offer points, cash back, or miles for every dollar spent. You can redeem points for vacation, shopping, statement credits, and more. Credit cards help customers create a credit history, vital for future loans and credit.

 

 

Types of Credit Cards in India

To suit diverse budgets and lifestyles, Banks offer many credit cards. These cards offer reward points, cashback, travel incentives, and restaurant savings. No fees for lost cards, no-touch payments, and excellent security are available to cardholders. Welcome incentives and airport bar access are also available with various credit cards. Let us learn more about the different sorts of credit cards available based on your needs.

• • Shopping Credit Cards : These are intended to reward cardholders for their shopping purchases. They can receive substantial incentives through points or cashback, which can be exchanged for products, vacations, or other benefits.
  • Lifestyle Credit Cards : Lifestyle credit cards appeal to a variety of lifestyle requirements and desires. They offer reward points for each transaction, shopping discounts, and cashback on retail purchases, making them suitable for various spending patterns.
  • Fuel Credit Cards : Fuel credit cards are designed for people who frequently buy fuel. These cards help to reduce fuel expenses and typically feature additional lifestyle perks, making them an attractive option for frequent fuel buyers.
  • Rewards Credit Cards : For every dollar spent, rewards credit cards provide rewards like cashback, points, or travel miles. Depending on the card, these benefits can be redeemed in various ways, giving you flexibility and extra value for your purchases.
  • Travel Credit Cards: Travel-related discounts and offers are available with travel credit cards. These cards are a valuable tool for frequent travelers since they provide savings on travel-related expenses like reserving airline tickets and accruing reward points.

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Benefits of Credit Cards

Why Use a Credit Card?:

• • Shop with credit: The credit limit available to the cardholder makes a credit card appealing. Your monthly budget will remain unaffected even if you purchase high-value things on credit. One of the most significant advantages of a credit card is that you may convert the complete amount of your purchases into low-cost EMIs, allowing you to repay them simply over time. It has helped to transform the purchasing experience.

• • Rewards Points System : For instance, HDFC Bank, Axis Bank, etc., have a credit card reward points system, which is a significant benefit of using their cards online or in-store. You can exchange your points for airlines, gift vouchers from well-known companies, and more beyond reducing your statement debt.

• • Cashback credit cards: offer additional rewards. Use your reward points before they expire, and stay tuned for exclusive credit card offers tied to them.

• • Credit Card Cash Withdrawal : Cash withdrawals are interest-free. A few credit cards let you withdraw up to a certain amount in an emergency with no interest for 45 to 50 days. You can use it in times of financial crisis.
  • Fraud Protection: Using a credit card ensures fraud protection. If a robber uses your debit card, your money is immediately taken, which can cause legitimate payments to bounce and harm your credit score. Reversing fraudulent transactions can take time while the Bank investigates.

• • Credit Score Improvement: Responsible credit card use, such as timely payments and low credit utilization, helps build and improve your credit score. Your Credit Score is necessary for securing loans and getting better credit card offers in the future.
  • Travel Benefits: Travel credit cards in India often appeal with complimentary airport lounge access, travel insurance, and discounts on hotel bookings. These benefits enhance your travel experience and provide significant savings.

Bill Payments:

Many credit cards in India offer large purchases in easy monthly installments (EMIs). This feature is handy for managing big-ticket expenses, such as electronics, travel bookings, or medical bills, without causing a significant strain on your monthly budget.

You can make necessary purchases by breaking down the total cost into smaller, manageable payments over a fixed period. Some credit cards offer attractive interest rates or even interest-free EMIs during promotional periods. This flexibility in payment can help you better plan your finances and avoid the stress of significant, one-time expenses.

 

What is the Eligibility for a Credit Card Apply?

If you are interested in  Credit card offers and want to apply for a credit card from any Bank, you must ensure you meet these requirements.

Age Criteria: It would help if you were of legal card-using age to apply for a credit card from the Bank. You must be between the ages of 18 and 65 to apply. Credit card applications are open to anyone younger with these age criteria.

Income Criteria: A steady source of income is required to apply for a credit card at the bank you opt for. The card’s features and specifications determine the income requirements.

Professionals can be either salaried employees of a well-established corporation or self-employed owners and operators of their ventures.

Nationality: The ideal candidate would either currently reside in India or be a non-resident Indian.

 

 

How Credit Cards Work:

• Usage: Swipe, tap, or enter your credit card details to make payments.
• Billing Cycle: At the end of each billing cycle, you receive a statement summarizing your transactions and the amount due.
• Repayment: Pay the outstanding balance by the due date to avoid interest. Paying only the minimum due carries forward the remaining balance with interest charges.

 

How to Apply for a Credit Card Online

 

Difference Between Credit Card and Debit Card:

Feature	Credit Card	Debit Card
Source of Funds	Borrowed from the bank	Deducted directly from savings
Payment Deadline	Repay by due date	No repayment needed
Credit Score Impact	Builds credit history	No impact on credit score
Rewards	Offers cashback, points, or miles	Limited or no rewards

 

FAQ Section

“Frequently Asked Questions about Credit Cards”

• What is the difference between credit and debit cards?
• How can I improve my credit score with a credit card?
• Can students apply for a credit card?
• Is there an annual fee for all credit cards?

Conclusion

A variety of Credit cards are available from different banks. Each has its own set of benefits and requirements for approval. Almost everyone can get a credit card. A few of the benefits include but are not limited to, cashback and rewards points, eating discounts, and free lounge admission. Better still, you can begin the application process online for your convenience.