Most of banks in India now offer credit cards to their users. Some of the cards change nothing for owning it while some banks change a specific amount of money annually from the credit card holder. Credit cards have limit of credit depending of the bank issuing it and the profile of the card holder.
Below are frequently asked questions related to credit cards:
What is a credit card?
A plastic card offered by a bank or a financial institution that can be used to pay for product or services is known as a credit card. The credit card issuing bank charges a certain amount of interest on the amount outstanding if you do not repay back all the credit you have taken within a stipulated period.
What is the credit limit on a credit card?
Every card has a credit limit stipulated by the issuing bank, based on the income and paying capacity of the consumer.
What are the types of credit cards available in India?
As of now there are three types of credit cards available in India. These are Visa, MasterCard and American Express. Both Visa card and MasterCard are offered by many banks while American Express credit cards are issued only by American Express bank.
What are the eligibility criteria to get a credit card?
To avail of a credit card facility you need to be of at least 21 years of age. Banks also require you to have a minimum level of income before providing you a credit card. Some banks also have some additional criteria for persons applying for a credit card.
What are the charges for a credit card?
Most of the banks or financial institutions do not charge anything when you apply for a credit card. They make money only when you fail to pay the credit amount on time and they charge interest on the amount outstanding.
However, some banks require you to pay annually for holding a credit card. These companies make money on interest too. It is advisable to see all fine prints while applying for a credit card.
What happens if credit card bills are not paid on time?
When a credit card holder fails to pay his dues on time then the bank changes a certain amount of interest on the credit amount outstanding. A bank can charge on monthly or even daily basis if the credit amount is not fully paid within the stipulated time. It is recommended to pay all dues on time to avoid paying high rate of interest charged.
Can I use my credit card anywhere in the world?
Most credit cards can be used in most of the countries.
How a credit card is different from a debit card?
You can use a debit card to pay for products or services only if you have money in your card issuing bank account. If you do not have any money in the bank account then you can not pay through your debit card. A debit card is normally issued by the bank, where you have your bank account. When you make a payment through a debit card then the amount is paid off your account immediately.
A credit card can be issued by any bank even if you do not have an account with. It offers a short term loan to an individual where he or she can make the payment immediately and repay the loan amount later within a stipulated time period.
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