Types of Cards Features, Benefits, and Top Credit Cards

A credit card is a payment card in which charges are made against the account holder’s line of credit rather than through cash deposits. When someone purchases something with a credit card, that person’s account accrues a balance that must be repaid each month.

What is a credit card?

Credit cards are thin rectangular cards of plastic or metal issued by financial institutions that enable cardholders to borrow funds to pay for goods and services at merchants accepting credit cards. With credit cards, cardholders must pay back the borrowed funds, plus any applicable interest, as well as any additional charges, either on or before the billing date. 

Top credit cards in India

See also: Information about Central bank of India IFSC code

Eligibility to avail of a credit card

Several factors determine whether you are eligible for a credit card. Take a look at the primary eligibility criteria for credit cards:

• Must be an Indian citizen.
• Must be 18 or above years of age.
• Must be salaried or self-employed.
• Must have a decent credit score (usually, a credit score of 700 and above is considered a good credit score).

Documents required for a credit card

• • ID proof: Aadhaar card, PAN card, Passport, or Voter ID card
  • Address proof: Aadhaar card, telephone bill, or electricity bill

• Proof of income:
• • For self-employed individuals: ITR statements and recent financial statements (certified).
  • For salaried individuals: Salary slips, and salary certificates.

How to choose a credit card?

To choose the right credit card for yourself, determine the following:

• Your spending capacity
• Rewards and cashbacks offered
• The fees and charges levied
• Channels of payment supported
• Any welcome or bonus offer

How to apply for a credit card?

Online and offline applications are available for credit cards. The credit card application process has been simplified and streamlined.

How to apply for a credit card online?

The following are four simple steps to compare and apply for a credit card on BankBazaar:

• Comparison of the credit card offers is the first step.
• Choosing the best card from leading Indian banks is the second step.
• Enter a few details about yourself to check your eligibility.
• The fourth step is to fill out the application form online and receive instant approval.

Alternatively, you can apply for a card online on the bank’s website by following these steps:

• The first step is to visit the bank’s website.
• Take a look at the bank’s credit cards.
• If there is a comparison tool available, use it to compare the features and benefits of each.
• The fourth step is to select the card that is right for you and to click ‘Apply’.
• Upload all required documents after filling in the required details.
• At the end, submit your form.

How to use a credit card?

Here are a few tips on how to use a credit card.

Use the right card for the right purchase

Make sure you are using the right credit card based on your needs if you have more than one. Consider using a travel credit card if you spend a considerable portion of your income on travel, such as booking flights, hotels, and more. By doing so, you can earn reward points.

Pay the bills into EMIs

Credit cards can be used to pay for purchases through EMIs and repay the bills at your convenience.

Opt for a personal loan during emergencies

Some lenders allow credit card users to convert their unused credit limits into personal loans at a nominal interest rate. This allows credit card users to meet their urgent needs immediately.

Shop online using reward points

When you purchase online, credit cards offer 2x reward points.

Redeem your reward points

Credit card users can redeem reward points for discounts on hotel bookings, flight tickets, etc. through their banks. Users can use these reward points to get exclusive shopping vouchers, cashback, and recharge vouchers.

Benefits of credit cards

Buy on credit

Credit limits are what make credit cards attractive to cardholders. Within those limits, you can buy anything. Even if you buy high-value items on credit, your monthly budget will not be affected. A credit card offers the benefit that you can convert the total amount of your purchases into low-cost EMIs that you can pay back over time. Shopping has been transformed as a result of this.

Most accepted method of payment

Having this card means you do not have to carry much cash with you. With a credit card, you can pay for anything.

Interest-free cash withdrawals

If you have an emergency, you can withdraw cash up to a certain limit on a few credit cards, without incurring interest for 45 to 50 days. This can be useful during emergency situations.

Unlimited reward points

You can earn reward points when you use these cards. With IDFC FIRST Bank credit cards, for instance, reward points are unlimited and never expire.

Insurance coverage

One of the significant benefits of credit cards is that they provide personal accident coverage as well as travel insurance coverage.

Make travel easy

As a result of their use in travel, credit cards are important. The credit cards from IDFC FIRST Bank offer unique benefits such as complimentary lounge access at the airports and train stations in India and priority check-in. In addition to these benefits, you can also receive discounts on food in more than 280 restaurants.

Discounts and cashback

Besides discounts on entertainment and dining outlets and travel and shopping apps, credit cards offer other benefits as well. At petrol pumps nationwide, you can also get fuel surcharge waivers. 

Improve your credit score

You can use credit cards for more than just shopping. They also help you improve your credit score. By using a credit card properly and repaying the amount used on time, you can boost your CIBIL score. As a result, you will have no difficulty obtaining loans in the future.

Offers safety

With a credit card, you do not have to carry much cash.

Keep track of your expenses

As a result of the monthly statements you receive from net banking, you can keep track of your expenses and plan the repayment accordingly.

Also see : Know all about Service plus online

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