Basic Information on Credit Cards
Credit Card is popularly known as digital money. It is a payment card issued to the cardholders to enable them to pay a shopkeeper for the purchase of goods and services. It is based on the card holder’s promise to the card issuer to pay for the final transacted amount which includes other charges.
The issuer of credit card – bank, will create a revolving account and will grant a line of credit to the cardholder, from where the cardholder can borrow money for payment to a merchant or as a cash advance.
A credit card allows the user to borrow money from the bank to make purchases.
As long as the borrower pays the money within 25-30 days, they need not have to pay any extra money. Failing to do so will attract a percentage of additional charges along with the actually borrowed money from the bank.
With the introduction of a credit card, an individual need not have to carry cash all the time. A credit card in hand will reduce the need to carry cash as the plastic money acts as a perfect substitute for paper money. Customers can pay for a wide array of products and services across the globe using a credit card.
In today’s world, many banks and financial institutions are offering various varieties of credit cards as per the requirements of the customers. A few among them are – lifestyle credit card, entertainment credit card, travel credit card, co-branded credit card (tie-ups with leading brands) and so on. These cards are usually classified based on the yearly income of the cardholder.
Credit Card by Bank ( Choose your favorite credit card by your needs )
- American Express
- Axis Bank
- Bank Of Baroda
- Canara Bank
- HDFC Bank
- HSBC Bank
- ICICI bank
- IDFC First
- IndusInd Bank
- Kotak Mahindra Bank
- Punjab National Bank
- State Bank of India
- Standard Chartered
Credit Card by Category ( Choose your favorite credit card by your needs )
- Shopping & Cashback
- Low Fee
How to apply for a Credit Card through Offline?
The way to do this is to simply walk into a bank branch and seek the services of the help desk. But before you do that it is a good idea to check eligibility as also why do it this way rather than the more tempting online.
Eligibility Criteria for Credit Cards
The primary consideration for a credit card is a salaried income and a decent credit score. For those without a salaried income you need a fixed deposit. There is a minimum salary and credit rating criteria which varies from bank to bank. You will also be required to submit address proof, ID proof, Salary details including IT returns and PAN card copy.
Hazards of online credit cards
The principal benefit of offline credit card is that you have an office to go to when you are in trouble. Credit cards are useful, but also risky. Loss and credit card frauds do happen. Should this happen, dealing with an interactive voice response system can be quite intimidating, especially when loss or potential loss of money is imminent. Also, credit card marketing is a favorite amongst online fraudsters and con men.
Getting a credit card offline involves filling out a form, submitting documents and verification, wherein a bank official will visit your residence or office, after which the card is mailed to your correspondence address. Credit cards are better obtained from a bank branch rather than online. Subsequently you may manage it through their portal.
Fees and Charges levied on Credit Card
Every credit card comes with some fees and charges. Yes, these charges can be avoided, but, it is important to know what fees and charges a credit card can have. Here’s the list: –
- Annual fee – Every credit card has an annual maintenance fee applicable for one year, and cards that are offered for free, usually rebate the first year’s maintenance fees.
- Interests – If you fail to pay the credit or borrowed amount in the grace period, your credited amount is subjected to interest decided upon earlier.
- Cost of overseas transactions – Every overseas transaction made by you is charged with certain fees, which is generally 3.5 % of the transaction amount.
- Cash withdrawal interest – If you ever withdraw cash from your credit card, this amount is charged with an interest, which is higher than the normal interest rate.
- Fees for overusing card limit – If you cross the limit of credit and still use your card, the bank charges you some fees for crossing the card limit even by Re 1.
- Fees for late payment – When you pay the bill within the grace period there is no interest, and after that, you have to pay interest. However, if you don’t pay the credit amount for more than 90 days, you are charged a late payment fee.
- Fees for card replacement – When you replace your card due to any underlying reasons, you have to pay fees for card replacement.
- Surcharges – If you have ever noticed, then every petrol bill transaction comes with an additional surcharge, which is either 2.5 % of the total credited amount or a flat rate of Rs 10 – Rs 25.
- Service tax – Every single transaction form your card carries a service tax.