Credit Card FAQs

A Credit card is a small plastic card used to fund any purchases, online bill payments, and shopping needs of an individual. It is a convenient alternative to cash or cheque.

Basic credit cards with standard features.

Travel credit cards (for frequent flyers and travellers)

Cash back cards

Reward cards

Entertainment cards

Lifestyle cards

Fuel cards, and many more

There are different variants of credit cards like Silver, Gold, Platinum and Titanium, Classic and Premium cards. The features on each card are different and offer various benefits to customers.

It can be used to shop at malls, restaurants, pay bills and any payment requirement. It helps you to manage your finances better. The major advantage is it allows you to purchase now and pay later in easy instalments.

Credit card is a credit that the bank gives you based on your credit worthiness and repayment capacity. It allows you to purchase now and pay for it in easy terms and instalments too. A debit card is used to withdraw money or purchase goods with the available money at credit in your bank account.

The credit limit depends on your income/earnings and credit score. The applicant’s credit limit depends on his ability and willingness to repay.

Credit card earns reward points every time we purchase or swipe the card. These rewards points can eventually be redeemed for any shopping gift vouchers, coupons or purchases of any articles (as specified by the credit card issuing bank).

Credit card interests are generally between 36% and 42%. The interest rate is determined depending on the customer profile, repayment capacity and credit history.

If payment is made within the due date, no interest is charged. But, if the card holder delays payment of the minimum monthly dues, late payment charges are levied, and the interest rate is also high on the unpaid amount. In that case, his/her credit score is also adversely affected.

The applicant should be minimum 21 years of age

He should have a steady income.

His credit history should be good. This is determined through CIBIL.

Add-on cards can be taken for immediate family members at a nominal fee. The add-on card gets the same limit as the primary card on a carry-over basis, with the same features as the primary card. The bill is generated comprehensively in the primary card holder’s name.

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