January 1, 2019

Credit Card

What is Credit Card?

Credit card is a plastic chip card offered by Banks or financial institutions with a pre-approved limit of funds/money that can be borrowed by a credit card holder. Black strip on a credit card holds various encrypted information’s of the user and it works on swapping machine or ATM for making real time transactions. Credit cards usually have 14 to 16 digits number on the front side and 3 digit CVV number on the back side, except, Amex credit card. Amex has 4 digits secrete number on the front side of a credit card.

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Credit Card Limit

Credit card limit depends on income, credit history also known as Credit Score, place of work & etc. Credit cards can be used for online or offline transactions as well one can withdraw a pre-approved amount of cash from ATM.

Credit Card Payment

Payment of credit card bill typically needs to be done within the grace period. During the grace period interest will be Zero. It is advised to clear the dues on or before the payment day. There are some banks that offer payment revolving options, where it allows unpaid amount to be carried forward with interest charges applied for the next month bill. Everyone should avoid payment delay because late fees and interest rates in Credit cards are very high.

Best Credit Cards with Joining & Annual Fees in India 2019

SL No Credit Cards Card Type Annual Fee Joining Fee
1 Indusind Bank Platinum Aura Credit Card Rewards Rs. 0 Rs. 0
2 ICICI Bank HPCL Credit Card Cashback Rs. 0 Rs. 0
3 ICICI Bank Coral Credit Card Lifestyle Rs. 500 Rs. 0
4 RBL Titanium Delight Credit Card Entertainment Rs. 0 Rs. 0
5 RBL SHOPRITE Credit Card Shopping Rs. 0 Rs. 500
6 SimplyCLICK SBI Credit Card Shopping Rs. 500 Rs. 500
7 SimplySAVE SBI Credit Card Shopping Rs. 500 Rs. 500
8 Yatra SBI Credit Card Travel Rs. 0 Rs. 0
9 Yes Prosperity Rewards Plus Credit Card Rewards Rs. 0 Rs. 0
10 Yes Prosperity Business Credit Card Rewards Rs. 0 Rs. 0
11 STYLEUP Contactless Credit Card Shopping Rs. 500 Rs. 500
12 IRCTC SBI Platinum Credit Card Travel Rs. 300 Rs. 500
13 RBL Movies And More Credit Card Entertainment Rs. 1000 Rs. 1000
14 RBL Platinum Delight Credit Card Rewards Rs. 1000 Rs. 1000
15 RBL Bank Platinum Maxima Credit Card Rewards Rs. 2000 Rs. 2000
16 Yes First Preferred Credit Card Travel Rs. 0 Rs. 0
17 Yes First Business Credit Card Travel Rs. 0 Rs. 0
18 Yes Prosperity Edge Credit Card Rewards Rs. 0 Rs. 0
19 SBI Elite Credit Card Lifestyle Rs. 5000 Rs. 5000
20 Air India SBI Platinum Credit Card Travel Rs. 1500 Rs. 1500
21 Air India SBI Signature Credit Card Travel Rs. 5000 Rs. 5000
22 HDFC Diners Club Platinum Credit Card Travel Rs. 0 Rs. 0
23 HDFC Diners Club Rewards Credit Card Travel Rs. 1000 Rs. 1000
24 HDFC Moneyback Credit Card Cashback Rs. 500 Rs. 500
25 HDFC Solitare Credit Card Lifestyle Rs. 0 Rs. 0
26 HDFC VISA Regalia Credit Card Lifestyle Rs. 0 Rs. 0
27 Citi Rewards Credit Card Rewards Rs. 0 Rs. 0
28 Citi PremierMiles Credit Card Travel Rs. 0 Rs. 3000
29 Citi Cash Back Credit Card Cashback Rs. 0 Rs. 500
30 IndianOil Citi Credit Card Travel Rs. 0 Rs. 0
31 HDFC Snapdeal – Credit Card Shopping Rs. 500 Rs. 500
32 HDFC Jet Platinum – Credit Card Travel Rs. 1000 Rs. 1000
33 BPCL SBI Credit card Fuel Rs. 500 Rs. 500

Top 12 Types of Credit Cards

  1. Airline Credit Cards
  2. Business Credit Cards
  3. Cashback Credit Cards
  4. Co-branded Credit Cards
  5. Corporate Credit Cards
  6. Dining Credit Cards
  7. Entertainment Credit Cards
  8. Fuel Credit Cards
  9. Lifestyle Credit Cards
  10. Rewards Credit Cards
  11. Shopping Credit Cards
  12. Travel Credit Cards

Good Credit Card Habits To Have

A Visa or credit card is an installment card issued to clients (cardholders) to empower the cardholder to pay a dealer for merchandise and ventures dependent on the cardholder’s guarantee to the card guarantor to pay them for the sums in addition to the next concurred charges. The card backer (ordinarily a bank) makes a rotating record and allows a credit extension to the cardholder, from which the cardholder can acquire cash for installment to a trader or as a loan.

A Mastercard is unique in relation to a charge card, which requires the equalization to be reimbursed in full each month. Interestingly, Mastercards permit the buyers a proceeding with parity of obligation, subject to enthusiasm being charged.

DO’S WITH CREDIT CARD

Ponying up all required funds, on time

By ponying up all required funds each month, you maintain a strategic distance from intrigue and late-installment punishments. On the off chance that you fear cutting that huge check, have a go at making numerous installments consistently. One can also set up autopay, expecting you won’t chance an overdraft.

Adhering to a financial plan

Planning is a procedure. This implies planning is various exercises performed so as to set up a financial plan. A financial plan is a quantitative arrangement utilized as an instrument for choosing which exercises will be picked for a future timeframe.

Planning doesn’t require Herculean exertion when it’s a piece of your daily practice.

Combine your week by week spending registration with another week by week movement, for example, shopping for food. As you do these undertakings next to each other more than once, planning turns into a propensity.

Checking accounts

Checking is the continuous procedure of watching undertaking or program exercises to decide the rate of advancement toward the accomplishment of an objective. The data assembled because of checking is utilized to land at an investigation of advancement, featuring shortcomings that require the board consideration.

At the point when your financial record comes, don’t simply pay it — read it. Else, you could miss charging blunders, false charges or different issues.

Remain over your record by agreeing to accept spending message pop-ups from your guarantor.

Remaining great underneath credit limits

To keep your FICO assessments fit as a fiddle, utilize under 30% of the limit on each card. The lower your parities, the more your scores will profit.

Download your backer’s cell phone application to all the more effectively track your spending. Check your parity when you have some an opportunity to murder and make an additional installment in the event that it crawls excessively high.

DON’TS WITH CREDIT CARD

Try not to Carry a Balance

A Visa is an unbound credit. On the off chance that you don’t satisfy your card each month, you need to pay enthusiasm on the sum you owe.

The normal family Mastercard obligation is almost $8,000, per CardHub, and families with more salary will in general have more charge card obligation than the individuals who make less. Which implies expanding card obligation is an issue that is probably going to influence you at one point in your life– regardless of what you acquire.

Try not to spend excessively of your accessible equalization

To keep your FICO score as light as would be prudent, don’t spend over 20% to 30% of your accessible credit limit. Guarantors don’t look generous on borrowers who maximize their cards every month, regardless of whether they fork over the required funds.

Try not to finish off old records except if they’re charging you expenses or except if the compulsion to overspend on the card is too incredible to even consider resisting. Old records can support up to 15% of your FICO assessment.

Things to consider before applying for a Credit Card

Nowadays, the applications of credit card are present everywhere. Anyone can find these applications easily in supermarkets, e-commerce marketing, airport etc. A credit card in the wallet is one of the most valuable and handy personalized finance tools, with India fast shifting towards a less-cash economy. Applying for a particular and desired credit card is quite convenient and a person can do it online. Although the steps are easy, the applicant should always recall that he/she is going for a very important economic decision.

Therefore, there are many factors a person must consider before selecting a particular credit card. Let’s have a glance at these factors:

8 Things to understand before applying for a credit card:

Credit Card Spending Habit

The first questions a person need to ask is how he/she is planning to utilize the card. Will he/she use it for emergency purpose or to pay his/her daily needs. If the person is capable of clearing the amount each month then he/she should not bother about the credit card’s monthly interest.

Credit Card Interest Rate

Like every other financial loan, these facilities also comes with the commitment of paying interest. This rate may be fixed as well as fluctuating too. If the rate is fixed then a person easily gets to know about monthly interest. But if the rate is a fluctuating one, the amount varies from one month to another.

The limit of Credit Card

There is an upper monetary limit that a user is allowed to spend. It is decided with the help of information that a person has submitted to card provider like debit, income etc. Credit Card Fees and Penalties The credit card provider company make their money from a person in many ways, i.e. charges included in the cash advance, transfer of balance and transaction etc. They also impose penalties if you spend above the limit or pay them later than supposed.

Online banking experience

Before applying for a credit card, a person must know whether the applied card is useful for making the desired online transactions i.e. can transfer funds or purchase items online. Generally, most of the cards by default support online transaction but not all.

Credit card Repayment terms and grace periods

A person should try as much as possible to clear the monthly balance, they must protect themselves in advance by checking whether the card offers a grace period and what late fine may be charged if they fail to pay during the grace period. Always keep in mind that the credit score will get affected if a person pays late.

Be ready with the documents:

A person should be ready with all the important documents required for the approval. These documents include his/her complete income information, bank statement, as well as the ID proofs etc.

Document Required for credit card:

  1. Proof of Identity:
  2. PAN card
  3. Voter’s id
  4. Passport
  5. Rashan card having applicant’s photo
  6. Driving License
  7. Aadhar Card
  8. 8.2 Residential Proof
  9. Electricity Bills
  10. Landline connection Bills
  11. Voter ID card containing the photograph
  12. Proof of Income