Credit Cards

A credit card is basically a plastic card provided/issued by banks. It allows you to borrow money from the provider to purchase whatever you want, be it a flight ticket, food, gadget etc. At the end of the billing cycle, you have to repay the principal amount borrowed along with the interest amount. It can be used for both offline and online purchases. Thus through credit card, you can manage your urgent expenses without having to worry about cash-flow or having hard cash at hand. You can apply online for a credit card and receive the same within a day or two. Many banks offer benefits on credit cards, such as welcome gifts, exclusive privileges, rewards, airport lounge access, fuel surcharge waiver, lifestyle and travel facilities, air miles, cash-back, etc.

How to Use a Credit Card?

When a financial institution issues a credit card, a revolving account for that card is created. When you receive the credit card, you can utilize it to make purchases on credit. The credit is basically the amount you have borrowed from the card issuer. You have to repay the outstanding amount with interest within the billing cycle or at the end of the same. There is a credit limit set and you should try not to exceed this limit.

You need to simply have the card swiped at merchant stores to make payments. The transaction is authenticated by entering the PIN number. In case of online payments, at the checkout section, you will have to authenticate the payment by providing the PIN or one time password (OTP).

Features of a Credit Card

There are several features attached to credit cards. Depending on the provider and type of credit card, the features will differ. Some of these are mentioned below.

  1. Credit Card Loans: You can get pre-approved loans on credit card. Though the interest rates are higher on such loans, these come handy when you need urgent cash, and cannot opt for traditional loans such as personal loans or small cash loans etc.
  2. Balance Transfer: You can transfer the outstanding balance in the existing card to another provider and thus, repay the amount at a lower interest rate or in the pursuit of availing better benefits. Doing this shall save you money or bring more comfort.
  3. Global Acceptance: Most of the credit cards issues in India can be used internationally as well, thus accepted by a majority of merchants all over the world.
  4. Utility Bill Payment: You can quickly pay off utility bills with credit cards. Thus, skip the queue, and make instant bill payment.
  5. Joining and Annual Fees: When you apply for a credit card, you have to pay a specific amount for enrolment. This amount is the joining fee. You have to pay a certain fee for the yearly usage of the credit card. This fee is called the annual fees. Some banks do not charge any joining or annual fees.
  6. Lifetime Free Card: Some banks offer lifetime free credit cards. It means that you do not have to shell out annual fee for these cards.
  7. E-statement: You can receive e-statement of all the expenses met on credit cards, at the end of each billing cycle. The statement can be accessed online, any time.
  8. Insurance Coverage: Credit cards can sometimes come with insurance protection, for instance, life insurance, travel insurance etc.
  9. Alerts: When you make any transaction on your credit card, you will receive an SMS and e-mail alert. Such alerts are also received to remind about pending payments as well.
  10. Cash Withdrawal Facility: You can even use certain credit cards to withdraw money from an ATM. A small fee can be charged for this service.

At, we will provide you maximum information about different types of credit cards and its providers, and acquaint you with the features and benefits of these financial products.

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