Hello friends, welcome to this post whose name is – What is a credit card and how to get a credit card . You must have heard about credit cards. Many people think that just once we get a credit card, then it is fun. But this is wrong. There are various misconceptions about credit cards, which are wrong. Today we will give you complete information about credit cards.
In today’s article, we will learn what a credit card is and how to get a credit card. Along with this, we will also know the terms and conditions of a credit card, what are the disadvantages of credit card, benefits of credit card, how credit card is made, what is credit card, credit card application online etc. If you want to know about all these in detail, then read this post in detail.
What is Credit Card?
A credit card is a plastic card that looks like a debit card. A debit card is also called an ATM card. But credit cards and debit cards are different. The debit card is connected to our bank account, so whenever we withdraw money from the ATM, that money is deducted from our bank account. But credit cards are different from this.
Whenever we apply for a credit card from the bank, the bank issues us a credit card and we have a credit limit. We will be able to use our credit card to the same extent as the credit limit. And the amount we have used for the credit card limit is the same amount we have to pay every month.
Each customer’s credit limit is different. The limit of a credit card depends on the customer’s earnings, profile, credit history, and CIBIL score. Everyone applies for a credit card, but it is available only to select customers.
In the form of a credit card, the bank gives you a loan that you can use for your needs. And you must know that after taking a loan, you have to repay that loan amount to the bank with interest. If you need immediate money at any time, you can use a credit card. If we use credit cards properly, then there are many benefits to it, otherwise, we may have to suffer huge losses.
With the help of credit card, you can shop both online and offline. You can use credit cards to meet any of your requirements. If we use credit cards properly, then there are many benefits. Some people apply for credit cards and they get credit cards, but they use them incorrectly, which can cause them to suffer huge losses. So we will give you complete information about credit cards in this post.
In simple terms, a credit card is a lending card issued by a bank in which you get a limit and you can use that limit to meet your immediate needs. In return, the bank charges you interest.
Advantage Of Credit Card
Credit cards have many advantages. If the credit card is used properly, it gives you many benefits. If you want to benefit from a credit card, then you have to use it carefully. You should use only 80% of your limit and pay your bill on time. By doing this, you will get a lot of benefits from this.
Let us now know what are the benefits of credit cards –
- You can use a credit card to do any type of online and offline shopping.
- If you shop online through credit card, then you are also given 1 to 2% discount.
- If you book a hotel and pay it through credit card, then you also get a discount.
- You get a reward system in every bank’s credit card. According to this, if you make any transaction through credit card, then you get a reward. When you have a lot of rewards, you can buy an item of your choice from those rewards.
- If you have to buy a mobile of your choice and its price is very high, then you can buy that mobile through credit card and you can emi that payment.
Whatever work you do through debit card, you can do all the work through credit card. - You can also withdraw cash through credit card.
- Through credit card you can pay for accidental expenses and needs.
- Some banks also offer insurance benefits on credit cards.
- If you use your credit card regularly and pay it on time, then you can improve your CIBIL score.
- The chance of fraud is very low.
- Many shopping websites offer you a lot on credit cards.
Disadvantages of credit cards
Credit cards are a boon for many people. But there are many people who misuse credit cards and get stuck in the trap of its bills and interest. On top of that, their CIBIL score also goes down a lot, due to which they have trouble getting any kind of loan even further. The loss of a credit card is only for those who do not pay its bill on time and use its full limit.
Now we know what is the disadvantage of credit card –
- If you are unable to pay the credit card bill on time, then you have to pay a penalty. You have to pay interest over and over against interest.
- If you are not able to pay the credit card bill on time, then your CIBIL score becomes very low.
- If you have too many credit card bills, then you have to take a loan from friends or relatives to pay them and this makes you a debtor.
- If you use the credit card more than the credit limit, then you have to pay a penalty of 3 to 4 times that amount.
- If you withdraw cash from the credit card, then the charge starts on the day you have withdrawn the cash, this charge is levied until you are able to pay it.
- If your credit card is stolen or lost somewhere, then you may have to suffer heavy losses.
- If we do domestic transactions with our credit card, then we have to pay OTP on every transaction, but if we do international transactions, then we need credit card number, expiry date and CVV. If our credit card is stolen or lost, then anyone can make international transactions through our credit card details.
- Some banks charge annual fees and many other charges in exchange for giving credit cards to the customer, which has a great impact on our income.
- After taking a credit card, we have a passion to shop online all the time and we keep shopping without thinking, which makes us habituated to wasteful spending.
How to pay credit card bill
Some people take a credit card and use it, but they do not know how to pay that credit card bill. You must know that the bank gives you a limit while giving you a credit card and you have to use the credit card only up to that limit. The bank gives one month to use the credit limit of any credit card. Only after one month, the bill of this credit card is generated. Even after the credit card bill is made, the customer gets time to pay the bill.
In total, a customer gets 30 to 50 days to pay the credit card bill. Some time ago, the credit card bill was sent by the bank to your place of residence, but today the credit card bill is sent to your email ID and you see the option of a credit card bill in your net banking profile.
You can pay credit card bills through net banking and any payment app. If you do not want to pay the credit card bill online, then you can also pay this bill by visiting your nearest bank branch.
Whatever bill is sent to you by the bank, that bill contains complete information about your transaction, such as what shopping you have done, what transactions you have done, if there is any penalty or charge, then it has information and reward information. You also get the option of the amount of your bill. You can pay the minimum payment according to your or pay the full payment. If you pay the minimum payment, then you have to pay a very high penalty on the remaining amount.
What is the credit card limit?
Whenever we apply for a credit card or talk about a credit card, we definitely get to hear one word and that is – the credit card limit. The question must have come to the mind of all of us what is the credit card limit?
Whenever you make any transaction through your debit card or ATM card, the money of that transaction is deducted from our bank account but this does not happen in the credit card. Whenever the bank gives us a credit card, it gives us a credit limit on that credit card. And we can only use credit cards up to that limit. Normally, the credit limit of a credit card ranges from Rs 25,000 to Rs 3 lakh.
As you use a credit card and pay for it regularly, your credit limit increases. If you do not use your credit card properly and do not pay it on time, then your credit limit can also be reduced.
The credit limit of the credit card depends on the customer’s income, profile, CIBIL score and credit history. The higher your credit limit, the higher the fees you have to pay.
Now we know how many types of credit cards are there.
Types of Credit Cards
Depending on the different uses, there are different types of credit cards, about which you have been told the following –
Travel Credit Card
You can use this credit card to pay for your travel and travel-related expenses. With the help of this credit card, you can book railway, bus, airplane tickets and hotels and also get discounts for it.
Shopping Credit Card
With the help of this credit card, you can shop online or offline and get a certain reward on every shopping. With the help of this credit card, you also get the benefit of discounts in shopping.
Fuel Credit Card
With the help of this credit card, you can buy petrol and diesel at the petrol pump and pay for it. In this credit card, you get the facility of fuel surcharge waivers.
Reward Credit Card
Whenever you make a transaction through this credit card, you are given a reward by the bank in exchange for every transaction. When you have a lot of rewards, you can use them to make your favorite purchases.
Entertainment Credit Card
You can use this credit card to buy movie tickets, entertainment related tickets. You also get the benefit of discount in this credit card.
Secured Credit Card
With the help of this credit card, you can shop online or offline and get a certain reward on every shopping. With the help of this credit card, you also get the benefit of discounts in shopping.
Balance Transfer Credit Card
If you have used the credit card too much and the credit card outstanding has become too high, then you can use this credit card. With this credit card, you can reduce your existing credit card dues.
Low-Interest Credit Card
Whatever bill is made in this credit card, there is very little interest in it, so it is called low interest credit card.
Free Credit Card
In this credit card, you do not have to pay any joining fees nor do you have to pay any annual fee. Apart from this, you do not have to pay any maintenance charge.
Things to keep in mind when applying for a credit card
Many people apply for a credit card but they do not pay full attention to the credit card. If you apply for a credit card, then you should keep the following things in mind –
- Some people apply for a credit card in a hobby. If you need a credit card and you can afford it, then you should apply for it.
- After taking a credit card, the ghost of shopping rides on people’s heads and they start spending unnecessary expenses. And later when they have to pay the credit card bill, they have to face a lot of problems.
- You should use the credit card as much as you can pay it on time.
- Do not share any information related to your credit card with anyone else.
- If you pay the credit card bill on time, then it increases your CIBIL score.
- Before applying for a credit card, you should get complete information about it so that you do not have to face any problem later.
Credit Card Eligibility
If you want to apply for a credit card or take a credit card, then you should know about the terms and conditions of the credit card which are as follows –
- Any person can apply for a credit card.
- You can apply for a credit card to meet any of your needs such as shopping, travel, tickets, buying something and business needs.
- Your income, profile, credit history and CIBIL score are taken into account while applying for a credit card.
- When applying for a credit card, your CIBIL score should be 750 or higher.
- You must be 18 years of age or older when applying for a credit card.
- You should have some means of earning so that you can pay the credit card bill on time.
- Apart from this, you have to follow the conditions set by the bank.
Credit Card Document Required
If you also want to apply your credit card and you do not know what documents will be needed for it. So there is nothing to worry about, the list of documents that are needed for credit card is the following –
- Identity related documents – Aadhar card, PAN card, identity card, passport and driving license etc.
- Address related documents – Ration card, electricity bill, postpaid bill, passport, driving license etc.
- Income related documents – Income tax return, salary slip, bank statement, Form 16 etc.
- Mobile number and email id.
- Bank passbook or bank statement.
- Documents related to your business or work.
Credit Card Application Process
If you meet all the eligibility criteria of the credit card application and you have enough documents, then you can apply for a credit card. You can apply for a credit card both online or offline, the complete process of which is given to you as follows –
How to apply for a credit card online
- To apply for a credit card online, you have to visit the official website of your bank.
- After that you will see the credit card option on the home page of that website.
- You have to click on that option and after that a page will open in front of you in which you will see the option of Apply Now.
- You have to click on that option and after that a form will open in front of you.
- You have to fill all the information that has been asked from you in that form carefully and after that you have to click on the option of final submit.
- After this, your form will be submitted.
- After this, your form will be checked by the bank.
- If your form is correct, you will be contacted by the bank and the credit card process will be carried forward.
How to apply offline for a credit card
- To apply for a credit card offline, you have to visit your nearest bank branch.
- After that you have to contact the bank representative there and get complete information about the credit card.
- The bank representative will give you complete information about the credit card and verify your documents.
- After this, you have to get the credit card form and fill it carefully.
- After filling the form, you have to attach the documents with it and submit it to the bank.
- After this, your form will be checked by the bank and the credit card process will be carried forward.
In this way, you can apply for a credit card online or offline by following the whole process and get your credit card. After the whole process, you get a credit card in a week.
Conclusion
In today’s article, we learned what a credit card is and how to make a credit card (credit card in Hindi). Using credit cards fulfills your needs and makes your financial life a little easier. Credit is like a boon for those who use it properly. It is a curse for those who misuse it and do not pay its bill on time.
You should use credit cards carefully. If you have any complaints or suggestions related to this post, then you can comment on us.