What Is A Credit Card, Benefits Of A Credit Card - Get Unlimited Cashback On Credit Cards
Greetings friends. You are warmly welcomed to our website BT Finance. Keep reading our blogs to get important information related to finance. Today we will know What Is A Credit Card, Benefits Of A Credit Card - Get Unlimited Cashback On Credit Cards
Many people hear about credit card but do not know what is credit card, so let us give you information in this article that what is credit card. Credit card is a type of loan card. On the basis of which you can make purchases and pay bills. Credit card bills can be paid till the due date. How to increase credit limit
What is Credit Card? know in detail
Credit card i.e. loan account. Imagine what you will do when you do not have cash but you have to make a purchase? The answer may be different for everyone. But, those who have a credit card will say that there is no tension and they will pay the bill through the credit card. You can make purchases without cash using credit cards.
It is like a borrowing account. With this, you keep paying your shopping bills and pay your credit card bill once at the end of the month.
Today in this article we will tell you what is a credit card (Credit Card Kya Hota Hai) and what are its benefits?
What is Credit Card? A credit card is a thin plastic card issued by financial institutions that lets you borrow money from a pre-approved limit to pay for your purchases.
Difference Between Credit Card And Debit Card
The main difference between credit cards and debit cards is that when you swipe a debit card, money is deducted directly from your bank account; On the other hand, when you make credit card purchases, the money is deducted from your pre-approved limit.
Credit card users are required to pay an interest charge if they do not pay their bills on time, whereas for a debit card user, no interest rate is charged as no amount is borrowed by the bank.
Credit Card Benefits in Hindi
Using credit cards wisely can make your financial life much easier.
Management of regular expenses – You can manage your regular expenses with the help of credit card. Using credit cards for regular expenses also helps you keep track of them.
Less scope for fraud and mistakes – Making online payments through debit cards can prove dangerous. The danger of payment through debit card is big because someone can withdraw the entire amount from your bank account in one go. It may take a long time for it to come back. In case of credit card, there is time to rectify the mistake.
Helpful in emergency – Credit card is very helpful in emergency situation. Credit cards are the easiest option for money compared to the time it takes to withdraw money from a bank account or process a loan.
Good credit score – If you spend money through credit card and pay it on time, then you can create a better credit score. This helps you a lot in the long run especially when you apply for a business loan or personal loan.
Other Benefits Of Credit Card
Following are the benefits of credit card-
⭐There is convenience in payment
⭐Recurring payments are easy
⭐Recharge and ticket booking becomes easier
⭐Get the benefit of interest free credit
⭐Get the benefit of rewards
⭐Get cashback and discounts
⭐Can keep track of expenses
⭐Keeping a credit card is safer
⭐Credit score becomes stronger
⭐Get extra benefits
Needs Of Credit Card For Businesmen
Credit card has become a daily necessity in today's era. People use credit cards for many important purposes, including shopping. Do you know that credit card can also be used to increase business.
Your question will be how? So it can be understood in this way - Credit card is also a type of loan. It is a different matter that this loan is available in advance, which means you can make purchases whenever you need.
Even in business, some such needs arise suddenly, like need of some equipment or need of some material which is affecting the productivity of the business, then it has to be fulfilled at any cost. Credit cards can be used for any such needs. The most important thing is that if you are paying your credit card on time, then you will not have any problem in taking business loan or personal loan.
Types of Credit Card in Hindi
From shopping to paying electricity bills, all types of credit cards are available, so you just need to know about them. Let us know how many types of credit cards are available in India and what are their features:
Types of Credit Cards in India and their Features
Travel Credit Card – With the help of travel credit card, you can avail discounts on all airline ticket bookings, bus and rail ticket bookings, cab bookings and much more. Whenever you book a ticket, you get some points which you can redeem later.
Fuel Credit Card – With the help of Fuel Credit Card, you can avail fuel surcharge waiver, take advantage of the offers run by petrol pumps, apart from this, you can save a lot of money throughout the year by earning additional reward points.
Reward Credit Card – There is definitely some reward on every transaction of this type of credit card. Cashback offer is also available on some cards. If you make payment somewhere through card, you will get a cashback of one or two percent.
Shopping Credit Card – Shop online or offline at partner stores to avail discounts on purchases or transactions with Shopping Credit Cards. Using this card you can avail cashback, discount vouchers and more from partner stores throughout the year.
Secured Credit Card – People whose credit score i.e. CIBIL score is very bad should apply for a secured credit card. This card proves to be very useful for those with bad credit scores. If you open a new account or apply for a loan, you can improve your credit score through a secured credit card.
Balance Transfer Credit Card – When you want to avoid high interest or penalties, you can get a balance transfer credit card. This is helpful in reducing your existing credit card outstanding. In such cards, you get 6 to 21 months to repay the dues. Yes, to use it you have to pay a one-time balance transfer fee, which can be up to 5% of the total amount.
How Does Credit Card Works
Do you know how your credit card works? Let's try to know the answer to this question
On what basis do banks give credit cards? – Only if you are eligible to repay the loan amount after taking the loan from the bank, only then the bank issues you a credit card. By spending money on a credit card, you actually borrow money from the card issuing bank, which you have to repay within the stipulated time.
60 days time to repay the money – If you do not pay the credit card bill on time, you have to pay a penalty. You get a debt free period of 50-60 days between the time the credit card bill is generated and the purchase is made.
Credit Card Terms and Conditions
While taking a credit card, many things should be kept in mind, which can be beneficial for you.
Initial And Annual Fees – Many lifetime credit cards are offered for free, except for a few high-value credit cards. Therefore, only such credit cards should be taken which do not have any initial fee.
Balance Transfer Facility – Some customers avail credit cards as a short term loan facility. When a customer cannot handle the debt burden from one credit card, he transfers his debts to other cards.
Rate Of Interest – If you are taking credit as a short-term loan, then the interest rate must be kept in mind. This rate usually varies from 2.33 to 3.35 percent per month depending on the different credit cards.
Payout Time – Generally banks provide loan tenure of 30- 60 days. It depends on the type of credit card and the date of issue. If the loan period remains without interest rate, the more number of days the amount will have to be paid without paying interest.
Credit Limit – Credit limit is the maximum amount that can be spent on the credit card.
Customer Service – It will be more beneficial to get a credit card from a bank with good relationship.
Reward Points & Cash Back – All banks try to attract customers by offering credit points or cash back. Therefore, customers who regularly use credit cards should join this scheme.
Shopping Facility – A good credit is the one which is accepted by the shopkeepers in the country as well as abroad. Credit cards with discount facilities and shopping facilities associated with most of the outlets are extremely beneficial.
So by now you must have understood what a credit card is and for what purpose and how a credit card is used. Know the answers to your credit card related questions.
Related F&Qs
How to use credit card?
1) Pay anywhere with credit card
2) Take advantage of the grace period
3) Use the right card for the right purchase
4) Opt for personal loan during emergency
5) Convert your purchase into EMI
6) Shop online to earn the most reward points
7) Redeem your reward points
Who issues credit cards?
Credit cards are issued by banks and financial institutions (Banks and NBFCs). Credit cardholders can make purchases or pay for various services by borrowing credit (money) from these institutions. Apart from this, credit card gives benefits like rewards, cashback, loan on interest free period etc.
What are the benefits of credit card?
You can do shopping i.e. online shopping through credit card. Apart from this, you can also pay your house, phone and electricity bills through credit card.
How many types of credit cards are there?
1. Travel Credit Card – With the help of travel credit card, you can avail discounts on all airline ticket bookings, bus and rail ticket bookings, cab bookings and much more.
2. Fuel Credit Card – With the help of Fuel Credit Card, you can fill petrol and diesel on which you get some reward points.
3. Reward Credit Card – There is definitely some reward on every transaction of this type of credit card.
4. Shopping Credit Card – You get the benefit of discount on purchases or transactions through Shopping Credit Card.
5. Secured Credit Card – With the help of this type of credit card, users can increase their credit score by using it properly.
6. Kisan Credit Card – With this credit card, farmers can buy fertilizers, seeds and machinery used in agricultural work. Apart from this, farmers can also take loan on Kisan Credit Card from the bank.
What is the minimum payment in credit card?
This is usually a small amount of the total amount outstanding. By making the minimum payment, cardholders can avoid late payment penalties that will be charged on the credit card.
What is the difference between debit card and credit card?
Credit card users are required to pay an interest charge if they do not pay their bills on time, whereas for a debit card user, no interest rate is charged as no amount is borrowed by the bank.
What is the interest rate on Kisan Credit Card?
The interest rate on Kisan Credit Card (kisan credit card) i.e. crop loan is 7 percent, but the central government gives a subsidy of 3 percent to the farmers who pay on time.
What is credit card in Hindi?
A credit card is a plastic or metal card issued by financial institutions that lets you borrow funds from a pre-approved limit to pay for your purchases.
What are the disadvantages of credit card?
Using more than one credit card also increases your chances of getting trapped in debt. Multiple cards means multiple due dates. If you forget to pay any card bill again, you will have to pay heavy interest. Along with this your credit score will also deteriorate.
Which is the best credit card?
1) Flipkart Axis Bank Credit Card
2) Amazon Pay ICICI Bank Credit Card
3) HDFC Regalia Credit Card
4) SBI BPCL Octane Credit Card
5) Simply Click SBI Credit Card
6) Citi Premier Miles Credit Card
7) SBI Card Elite
8) IOCL Axis Credit Card
Who can take the credit card?
You must be at least 18 years old. Whether you are salaried or self-employed, you must have a regular source of income to pay your credit card bills (minimum income limit varies for different cards). You should not have bad credit history.
What is the toll free number of Axis Bank?
Toll free number of Axis Bank is 1860 419 5555.
What documents are needed to get a credit card?
Aadhar card
PAN card
Income Tax Return (If Applicable)
salary slip