|Credit Card||Interest Charge Per Month||Joining Fee|
|ICICI Bank||2.49% to 3.40%||Nil to ₹ 1,25,000|
|SBI||3.35% to 3.35%||₹ 499 to ₹ 4,999|
|HDFC Bank||1.99% to 3.50%||Nil to ₹ 10,000|
|Axis Bank||2.50% to 3.25%||Nil to ₹ 10,000|
|Citibank||3.10% to 3.25%||₹ 500 to ₹ 20,000|
|Standard Chartered Bank||3.10% to 3.49%||Nil to ₹ 5,000|
|HSBC Bank||2.49% to 3.35%||Nil to ₹ 3,499|
With the rise in online trading through plastic money, credit cards have become extremely popular these days. They are a great financial tool and a better alternative to cash that eases out your online transactions. You can even apply credit card online. One of the great benefits of using this instant credit availing card is that you have to pay monthly bills on the later set date each month. It comes as a plastic card to be swiped on the point of sale terminals placed at the merchant establishment (such as a shopkeeper) or used for making digital payments.
Credit card benefits are plenty in number and diverse as well. The most popular credit card offers include different segments like entertainment cards, fuel cards, cash-back cards, student cards, women cards, travel cards, business cards, and low-interest credit cards, among others. Many banks also offer instant credit card without any credit card charges to its valued customers. Generally, they do not require any joining fee or annual fee.
A credit card is one of the most important financial inventions in modern times that enables one to make online transactions easier. It allows a cardholder to purchase goods and services on credit and pay it back on a later set date. Besides, credit card benefits are such that using it over other modes of payments is a far better option and of course, it eliminates the need for you to carry cash everywhere. Some key credit card benefits are listed below.
Credit card is simple and easy to use. Here are some of its benefits:
The number of credit cards available today are in hundreds or probably in thousands, spread acroose multiple categories with varied benefits. Below are some of the popular credit cards:
Good internet is all you need for a credit card apply online with instant approval. Nowadays, banks are providing quick service and approving credit cards within a day or two.
Here are the steps that you require to apply for a credit card online:
Apart from applying for a credit card online, you also have the option to choose your card offline. You can visit the bank directly to apply for a credit card. Also, you will be required to provide important credit card documents such as identity proof, pan card, and address proof to the bank. Once the documentation is done, it will take not more than 7-10 days to get the card delivered to the mentioned address.
Credit Card Eligibility varies based on the internal credit policies of the bank and the purpose for which the card is availed. Some of the basic eligibility parameters include:
Banks decide the amount of credit limit based upon your monthly salary, company your work for, as well as the existing relationship of the borrower with the bank. Banks may also decide to offer zero annual fees and renewal fees credit cards to customers in the high-income category and a steady credit card usage track-record. Some banks may even begin by offering low limit credit cards and decide to increase the same, after observing a consistent and disciplined track record depending upon the usage.
The late payment of monthly dues, payment less than the minimum monthly due amount attracts charges or hefty penalty on your credit card.
The entire unpaid balance on your credit card bill is chargeable based on the applicable credit card interest rate. Along with the outstanding balance, any new spending on the card will also be subject to interest, until the entire balance has been paid off. You should always compare credit card benefits along with interest rates of various banks to choose the best one with a lower interest rate.
The interest rates for credit cards are stated as yearly, as well as on a monthly basis. The yearly rate is known as the Annual percentage rate (APR). Unlike an interest rate, which refers only to the interest charged on a debt, APR is the combination of the interest rate and any other costs or fees involved in procuring the loan. This includes any additional costs associated with the transaction. APR on an online credit card can vary between 36-50%. Defaulting or delaying your bill payments can lead to a late penalty on your accumulated debt, thus ruining your credit score
Credit cards run on a monthly billing cycle, which is defined as a period between billings. During the billing cycle, any purchases made by the card are recorded in your monthly statement. Then, at the end of the billing cycle, you are billed for the purchases done by you during a particular period. Your next billing cycle will start with whatever balance was left unpaid at the end of the previous billing cycle. The billing cycle is followed by a grace period. Suppose your billing cycle is from 5th January to 4th February, and the due date is 20th February. This period, from 4th February to 20th February is the grace period that is generally offered on credit cards. Any purchases made during this period will be part of the next billing cycle. Credit card bills must be paid on time, i.e., before the grace period ends, after which the balance will be subject to interest. You can make an online credit card payment by logging in to your net banking account.
With a plethora of credit card offers from multiple banks, it often becomes difficult to choose the right credit card. Here are some steps to choose the best credit cards:
✅What is Add on Credit Card?
Add on credit card is an additional credit card issued under the original or primary card. This card can be issued to family members, spouses, parents, and children of 18 years and above. Every credit card has a limited number of supplementary cards that can be issued, and each has the same credit limit. The primary credit cardholder is responsible for paying the overall outstanding due to primary and supplementary cardholders. In case the payments are not made before the due date, the primary cardholder will be liable to pay the interest charged.
✅Can we get a credit card with a bad credit score?
Yes, you can get a credit card with a bad credit score. However, with the bad credit score, you will be eligible for a basic credit card, which has the least offers and low credit limit or a secured credit card.
✅How can I get my first credit card?
You can get your first credit card when you have at least 6 months of work experience in the same organization and have a monthly salary above ₹ 15,000. Almost all banks issue a basic credit card, which serves as an entry gate for new to credit individuals.
✅What is the billing cycle?
The billing cycle is the period between billings in which your bill amount is calculated. The billing cycle may vary and can range from 25-40 days but can also be shorter or longer depending on your credit card. Suppose, your credit card bill generates on the 7th of every month. The bill you get every month will contain all the expenses made in the previous month. Any purchase made on the 8th of a month will be added to the next billing cycle.
✅What Is the Credit Card Interest Rate?
The credit card interest rate is the charge or price you pay for borrowing the money through your credit card.
✅What is the grace period?
The grace period is the period between the end date of the billing cycle and your bill due date. In this period, you have to pay all your dues without having to pay any interest or late payment charges.
✅What is difference between debit card and credit card?
The debit card is issued against your savings account. It helps you use the funds that you have already deposited in your account. Whereas, a credit card gives you instant credit by paying for the things you want to buy.