A Credit Card is a rectangular slab of plastic issued by a financial company. It lets cardholders borrow funds with which to pay for goods and other essential services. It gives customers a pre-set credit limit which he can use to pay for his purchases without having to pay in cash or issuing a cheque. It is an instrument to help you make instant credit-based transactions. It offers you a line of credit that can be used to make purchases, balance transfers and/or cash advances and requiring that you pay back the loan amount in the future. While using a credit card, you need to make at least the minimum payment every month by the due date on the balance. Here is the list of common facts about credit and Debit card.

Common facts about credit and debit card:

What are Credit and Debit?

A Debit is an entry that either increases an asset or expense account or decreases a liability or equity account. And Credit is an entry that either increases a liability or equity account or decreases an asset or expense account.  

What is a Credit Limit on this card?

It is counting on your Credit Limit. Your credit card’s credit limit is the maximum outstanding balance you can have on your card at a given point in time without receiving a penalty.

What are the problems I’ve to face if I don’t use my credit card?

If you set not to use a card for a long period, it naturally will not hurt your credit score. However, if a lender notices that period of inactivity and decides to close the account, it can cause your score to slip.

Common facts of credit card online
Source: Google

I want to know about the point of a credit card

Point’s credit cards reward you for every dollar you spend. You may even get extra points for making certain types of purchases i.e. a credit card might offer 3 points per dollar on all travel purchases (hotels, airfare, etc.) while giving 1 point per dollar on various kinds of purchases.

Can I issue a credit card?

A credit card issuer is a bank or credit union that provides a credit card directly to the user, such as a consumer or small business owner. If you take a glance at a credit card, you’re likely to seek out a lot of various company names on it, in addition to the card issuer.

The advantages of having a credit card:

  1. Convenience – Using a credit card can make managing your finances more convenient than using another payment method.
  2. Credit card rewards – The ability to earn rewards for the purchases you make is one of the most obvious advantages of having a credit card. It helps to earn, manage and redeem rewards.
  3. Fraud protection – Federal law limits your liability for credit card fraud to $50. If you notify your issuer you lost your card before any charges are made, or when your card information (but not the actual card) is stolen, you aren’t responsible for any fraud.
  4. Free credit scores – Many credit cards now offer free credit scores as a benefit. Some credit card companies show your credit score on your monthly statements and others show through their website.
  5. Paying for purchases over time – Credit cards give you the ability to pay for a purchase using your card today and pay off your credit card balance on a future date.
  6. Up to Rs. 55,000 annual savings.
  7. Easy conversion of big-ticket purchases into manageable EMIs.
  8. Improve Cibil Score with timely repayments

Do I need to pay any processing fee for a loan against Credit Card?

Yes, banks need to charge a very nominal processing fee for loans against Credit Card.

You might be interested in:

10 best Credit Cards in India in 2020

The American Express Membership Rewards Credit Card Rs.1,000* Rs.4,500* Rewards
Indian Oil Citibank Platinum Credit Card Rs.3,000* Rs.3,000* Fuel
HSBC Cash-back Credit Card Nil Rs. 750 Shopping
Standard Chartered Super Value Titanium Credit Card Rs. 750 Rs. 750 Shopping and Cash-back
HDFC Regalia Credit Card Rs. 2,500 Rs. 2,500 Travel and Dining
Amazon Pay ICICI Bank Credit Card Nil Nil Shopping
Simply CLICK SBI Card Rs. 499* Rs. 499* Online Shopping
Axis Bank Magnus Credit Card Rs.10,000* Rs.10,000* Premium Lifestyle
Citi Premier Miles Credit Card Rs. 1,000* Rs. 1,000* Air Miles
SBI Card Elite Rs. 4,999* Rs. 4,999* Travel and Movies

*GST excluded.

Hope this information assists you. Stay tuned with BLOGSROCKS.

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