Introduction: 10 things about credit card
Everyone wishes to have a credit card because it helps us a lot in emergencies at times of no use, just the credit card kept in our purse comes in handy. Credit cards are as good as it is dangerous because many times we do wrong transactions with credit cards and we do not have money for repayment and this not only affects our civil life but also puts people in a lot of trouble. That’s why we are telling you 10 important things about credit cards in this article.
What is a Credit Card or learn about credit cards?
A CC is a means to help you in carrying out instant credit-based transactions. Unlike debit cards which are linked to your bank accounts and debit the corresponding amount for each transaction, credit cards allow you to make transactions on credit independent of your account balance. However, these amounts can be repaid at the end of a pre-specified credit period, and every credit card includes a credit limit beyond which transactions cannot be made.
how to Apply for a credit card
Income proof is required to get a CC. Whether you are salaried or self-employed, you must have valid income proof, apart from this your civil score should be good.
You are not a defaulter in any way such as check bounce or EMI of any loan has not bounced.
If your bank transactions are good or you already have a credit card from another company, then a financial company can set your card limit accordingly.
Click Here for apply Axis Bank Credit card, HDFC Bank Credit card, and SBI credit card
Eight Key Characteristics or Features of Credit Card
- Types of cards
- Grace period
- The method of calculating the financial charge
- Credit card fees
- Cash Advance Features
- Credit Limit
- Rewards & Bonus points
- Interest rate
Cashback on CC
Life time-free Credit Card
Co-Branded Credit Cards
Reward Points Credit Card Points
Travel Credit Cards
Fuel Credit Cards
Premium Credit Cards
Cards with Credit Lines
Grace-period on Credit Card
A grace period (time to pay a CC bill) is the time between the credit card’s billing cycle date and the payment due date.
For example (for example) – If the billing cycle date of the credit card is 01/01/2023 then its due date will be 21/01/2023. Now if a credit card user has done the transaction on his card from 02/12/2022 to 31 If the transaction is done between /12/2022 then the bill for that transaction will be generated on 01/01/2023 which will have to be paid by 21/01/2023.
During this time, you cannot be charged interest as long as you pay your balance in full by the due date.
Credit card fees & Financial charges
When we talk about the charges of a credit card, there are many types of charges such as annual fees, late payment penalties, financial charges, and interest. etc. All the charges given above are common in all credit cards. Apart from this, some other charges depending on the features of the card like -, charges on balance, foreign transaction fees for making international purchases, and loans can be availed through other credit cards. Includes fees for card transfers, fees for withdrawing cash from credit cards, etc.
Cash Advance Features About Credit Cards
Cash Advance Feature Any Credit
There is an extra feature of the card, within which any credit card holder can use the credit card like a debit card.
One can withdraw cash as per the features of the ATM or card, but the lord holder of the transaction has to pay interest from the first day and the usage is in any way
There is no grace period available.
Loan on Credit card
When we learn about credit card the loan is also an extra feature: a credit card provided by the card issuing company
card holder
Depending on the offer given to the company card holder as per the offer
Gives some amount as a loan and pays some fixed interest on it
The card company charges the amount, which is repaid by the cardholder in the form of EMI (monthly installment).
Does the company transfer this amount to the cardholder’s account or through the cardholder?
The EMI of the amount used is paid by the company and the company charges some interest on the amount.
Rewards and Bonuses on Credit Cards
The feature of bonuses and rewards is available on almost every credit card. This feature is given by the company according to the card transaction, these bonus points have a value equal to some amount, and these bonus points can be claimed and cashed or that value. Can do any transaction.
Interest rates on Credit Card
When you receive the credit card bill/statement, you should pay the entire bill amount by the end of the credit-free period to avoid paying interest charges on the outstanding amount. To pay a credit card bill, you generally get a credit-free period of 20 days from the date of issue of the bill/statement.
If you are not able to pay your credit card on time, the credit card company will
It charges 4% interest + GST, it also charges a late-payment fee which is around Rs 1000/- to Rs 1200/- + GST.
If you pay only the monthly ‘minimum amount due’ to the lender/issuer, which is usually around 5 percent of the total bill amount, you can pay off the outstanding amount over time. Make minimum payments on time There are no late payment fees. This process is commonly known as a revolving credit facility. But this deferred payment feature comes at a cost, as interest (at a fixed percentage) is charged on the entire outstanding amount until you pay off your credit card bill in full.
Credit cards provide pre-approved credit facilities. It is a revolving credit, with a grace period or free credit period on the amount used (credit purchases made through the credit card) for 20-50 days depending on the type of credit card. After which, if the outstanding amount is not paid in full or is completed by paying the minimum amount due, interest at the rate of 3-4 percent per month is charged on the entire outstanding amount. “Therefore, with a revolving credit facility you can repay the outstanding amount along with the interest charged on it at any later date.”
To know more about credit card charges Click Here – credit card debt calculator
Tips
If you are enjoying a credit card from any company then it is easy to apply for another company’s credit card
or