Overview

There are mixed opinions on the use of credit cards. Some may agree to your convenience and others may not, assuming you can accumulate more debt. Whatever the opinion, it is undeniable that the credit card is one of the best financial companions that help in various financial emergencies when funds cannot be obtained from anywhere.

Credit cards are issued by banks and NBFC approved by the Reserve Bank of India. There is a variety of credit cards that cater to different customer needs. One can choose the credit card that suits his spending habits. Having a credit card can help the cardholder save more daily expenses through reward points, discounts, discounts, offers, etc.

What is a Credit Card?

A credit card is a plastic card that comes loaded with a pre-approved amount that the cardholder can use for multiple purchases and pay for it later. The card issuer allows you to refund the full amount without interest for up to 50 days from the date of purchase. The cardholder can also pay the minimum amount due over the entire amount to avoid any fines. The minimum outstanding amount can range from 5% to 10%. However, the balance will be carried over to the next month, which must be paid with the interest specified by the credit card company.

Credit cards are an essential component of financial transactions in advanced economies. In many developing economies, such as India, credit cards are becoming increasingly popular due to their convenience and ease of use. You can use a credit card to buy anything from jewelry to groceries. Having a credit card means you don't need cash to make purchases. It is a more convenient payment method.

How do credit cards work?

Credit card companies provide credit cards to people with stable incomes and credit scores. Others can get a secured credit card for a fixed deposit. Each credit card holder is assigned a credit limit based on their income. You can spend up to the credit limit and pay it off on or before the due date. In most cases, the credit limit will be 3 to 5 times your net monthly salary. However, this varies from different banks.

Although popular banks provide a credit card, Visa, MasterCard, and RuPay provide the payment gateway. However, payment facilitators cannot place other terms and conditions on the card. Properties like interest rate, minimum amount to be paid, bonus points, etc. are set by credit card issuers.

A credit card doesn't mean you have more money, it just means that it gives you more time to pay for your purchases. Using a credit card means it changes the way you pay for your purchases. Every time you make a purchase with your credit card, you are actually borrowing that money from the credit card issuer until you repay it at the end of the month.

Types of Credit Cards

Credit cards designed by credit card companies do not have the same features on all cards. Each one comes with its own distinct features and benefits. They are created with consideration of people's needs and spending habits. For example, for someone who spends more on leisure activities like movies, clubs, etc., a leisure credit card will be more suitable than other categories. Generally speaking, according to different spending habits, we can classify credit cards into the following categories.

Business Purchases:

Aimed at customers who spend more money on purchases like clothes, jewelry, grocery stores, gadgets, etc. There are also special credit cards designed for online purchases that offer special discounts on some e-commerce portals. This type of credit card is best suited for housewives who have to manage all groceries and other retail purchases.

Travel Credit Card:

Frequent travelers may have to book airline tickets and hotel reservations and need cash to cover international expenses. Travel credit cards allow cardholders to do all of this and pay for them later. Free entry to airport lounges and a wide range of reward points are among the benefits of getting a travel credit card.

Lifestyle Credit Card:

Lifestyle credit cards are generally premium credit cards best suited to the elite who often indulge in dining out, leveraged purchases, etc. These credit cards come with more discounts, higher reward points and free concierge services. Since the benefits are higher, the annual fees are also higher compared to other credit cards.

Reward Points Credit Card:

Reward points are one of the attractive features offered by credit cards and have become an additional reason to use a credit card for many people. By understanding customer needs, most credit card companies have introduced credit cards that help you earn more reward points that can be exchanged for various gifts.

Credit Card Refund:

Much like a credit card with rewards points, Cashback Cards help you save on all of your purchases. You can get a certain percentage of reimbursement on various expenses such as dinner, ticketing, hotel reservation, etc. Additionally, you can also use discount points to reduce your monthly credit card bill payment.

Fuel credit card:

Traveling to the office from home is unavoidable, and you'll definitely have to pay an amount to cover the fuel expenses. Due to its importance, most credit card companies have created fuel credit cards that help you save more fuel costs.

You can get fuel surcharge waiver of up to 3% on that card. In addition to that, there are other benefits available on this card as well.

Ladies credit card:

Working women in the country is increasing. Realizing the importance of providing financial freedom for women, some credit card companies have created credit cards exclusively for women. Women who love to shop can take advantage of this credit card for offers and discounts.

Business credit card:

Every business entity will have to spend a large amount of money on the business process. Doing all the business purchases, such as machines, inventory, etc., with a business credit card can help you to earn big reward points which in turn can reduce expenses. Plus, a business credit card helps you keep track of all of your spending.

Secured credit card:

A person must have good income and a good credit score in certain cases in order for a credit card to be approved. For someone who doesn't have both, you can get easy approval of a secure credit card if you have a steady deposit. The credit limit for this type of credit card is provided up to 80% of the FD amount.

Student credit cards:

There are credit cards specifically designed for students in higher education. The eligibility criteria for this card is determined based on the income of the parent or guardian. Students can use this card to purchase laptops, stationery items, etc.

Features of Credit Cards

Following are some of the important features of credit cards that everyone must know before applying for it.

Credit Card Type:

As we already know, every credit card can be classified into any of the previous categories. The credit card you want to present must belong to one of them. Understand your needs and spending habits to choose the right credit card for you. This can help the cardholder earn more rewards points, rebates and discounts that can ultimately save money.

Credit limit:

Each credit card comes with a credit limit, which is the maximum amount allocated to your card. User can spend up to credit limit per month. When you think the credit limit is insufficient, you can contact the credit card issuer to request a credit limit increase. The approval of a credit limit increase is based on income and past payments. Maximizing your credit card limit can affect your credit score. It is recommended to keep the credit card utilization rate at 30% of the credit limit and below.

Interest-free period:

A grace period or interest-free period is one of the main advantages of using a credit card. It allows you to make purchases with pre-approved funds and pay them later without interest until a specified term. Generally, the maximum grace period is usually 50 days. The interest free period begins on the day of purchase and not after the invoice is created. Also read the exact terms and conditions of the grace period as there might be some complicated terms and conditions.

Annual percentage rate (APR):

It is the interest rate applied to the credit card balance after the grace period. If you have only paid the minimum amount owed over the amount owed, you will have a balance that can attract the interest rate after the interest exemption period. The Annual Percentage Rate (APR) varies between credit card companies. It generally ranges from 12% to 24%.

Credit Card Fee:

Although there are free lifetime credit cards that don't charge you money for using them, these are only a few and have fewer benefits. Most credit card companies charge a registration fee and an annual fee on your credit cards. These fees may vary depending on the type of credit card and its benefits.

In addition to the registration fee and annual fee, you will need to pay late payment fees, processing fees in the event of a balance transfer, ATM cash withdrawal fees, etc.

Balance Transfer:

When you are in debt and cannot pay your credit card bill on time, you can choose the balance transfer option, which allows you to transfer your outstanding balance to another card at a lower or no interest rate for a period of time. Given time. This allows you to pay off the debt with an additional grace period. Most credit card companies offer this option to attract customers and increase their customer base.

Cash withdrawal:

Most credit card companies allow you to withdraw a certain percentage of cash from your credit card limit from an ATM. However, this is not free. You must pay a fee of a certain percentage of the withdrawn amount. This is usually up to 3% of the withdrawn amount. The cash withdrawal is not included in the interest exemption period and is applied from the day the amount is drawn.

Benefits of Credit Cards

Most people buy credit cards when they start their career or when they take on the financial responsibility of a family. They find these cards stylish, especially when they need cash to buy essentials for the family or for a medical emergency. It gives you the ease of taking a personal loan at least 2-3 days to have instant cash. Here are some of the most popular benefits of using a credit card.

Ease of rest:

With all business lines digitalizing, carrying cash is no longer a necessary part of our daily life. Also, carrying a credit card is much safer than carrying cash. Since the card is password protected, there is less chance of it being misused. You can simply swipe your card to make all purchases. The credit card allows you to easily conduct all kinds of transactions and pay them later without any interest subject to terms and conditions.

Best companion during a financial emergency:

Emergency situations are inevitable and running out of cash in such situations is very common and one needs a helping hand to get out of trouble. A credit card can be your savior in these circumstances. You can use your card to make payments and pay later Since all commercial places have POS machines, using a credit card should not be an issue.

Welcome gift:

Most credit card companies, in an effort to attract more customers, offer several benefits to credit card holders. Includes e-gift voucher, cool reward points, gift voucher, etc.

Saving Money; Reward Points, Refunds, and Discounts:

Using credit cards for all of your transactions can save you some money. In order to attract many customers, credit card companies have offered reward points, discounts, discounts, and offers on various purchases.

Reward points are provided for every transaction that can be accumulated and redeemed for various gifts. Some credit card issuers allow you to convert your credit card's reward points into cash that can be used to reduce your monthly bill.

Cashback is the buzz word in the e-commerce industry. Credit card companies that collaborate with some e-commerce companies offer refunds on multiple purchases. This can only be obtained if you have a credit card. This can save a lot of money because you are paying less than the regular rate.

Discounts on meals, shopping, hotels, movies, flights, etc. They can help you save a lot. You need to define the channels through which you can receive these discounts.

Free entrance to the airport lounge:

This is one of the benefits of using a credit card. You get free entry to the VIP lounges at the airport where you can relax and enjoy unlimited complimentary food and drinks. However, this does not apply to all cards. You need to check if your credit card provider offers this feature for your card. There may be a certain limit to free lounge access. You can use all facilities in the lounge for free with your credit card. Some credit card companies allow additional card holders to enjoy the same benefits.

To get free access, you must obtain Priority Pass membership from the credit card issuer. You must apply online for Priority Pass membership by providing personal and card details.

Free travel insurance:

Exclusively designed travel credit cards and other premium cards provide free travel insurance that can provide coverage against air accidents, theft or lost baggage abroad, hospitalization in case of emergencies abroad, etc. These benefits are not available on all cards. So, check with your credit card company if they offer these benefits on your card.

Reception and counseling services:

When you travel abroad or stay in a hotel, you can customize your own travel and leisure activities. Flight bookings, hotel reservations, etc. can be easily made using the concierge services offered by credit card companies. However, this service or assistance can be charged with the monthly bill according to the rates.

Credit Score Creator:

Credit score is an important criterion when applying for a loan. This will help you get better terms for obtaining a loan. Using a credit card helps build a good credit score with a stable payment. The loan can have a predetermined period and you will only have a credit history for that specified period. But when using a credit card, you have a long credit history and increase your credit score with a positive payment record.

Golf program:

Most of the premium credit cards offer free golf tours of golf courses around the world. You get a free training session, entrance fee, green fee, etc. The cardholder shall bear the remaining fees.

No EMI Cost:

People who want to purchase accessories, gadgets, appliances, and other household items can purchase them with a credit card and pay for them at EMI at no interest rate. For many, this is a profitable option for shopping for favorites and staples online. No cost EMI is provided only for credit cards linked to e-commerce website.

Supplementary cards:

The cardholder can obtain an additional card for his immediate family members. The supplementary card member can use the credit limit of the primary cardholder and make purchases.

Free lifetime credit cards:

Most credit card companies issue free credit cards for life that can be used at no cost, and there are no annual fees on the card. It makes the user use the card without having to pay anything for it.

Exemption from fuel surcharges:

When you top up your car with a credit card, you can enjoy discounts on the additional fuel cost. There are also exclusive fuel purchases with credit cards that can save you a lot of money if you work in trucking or use the car frequently. Typically, you can get waiver of up to 3% on additional fuel surcharges on fuel credit cards.

Keep track of your expenses:

Once a month, your credit card invoice is generated, listing all the transactions you have made. You can track your monthly expenses and plan your budget accordingly.

In addition to the benefits mentioned above, the cardholder can obtain an exemption from the annual fee upon spending a certain amount determined by the credit card company. Some offer bonus points for spending a certain amount in a year.

Interest Rate on A Credit Card

If you pay your credit card bills on time and in full on a monthly basis, then you don't need to pay any interest on the money spent on your purchases. The credit card company allows you to use your money for that month "for free" if you pay it on time at the end of the monthly billing cycle. However, if you only make a partial payment, the issuer will charge interest on the remaining amount (or balance) that will be carried over to the next month's invoice.

For example, if you make purchases of Rs 20,000 and pay the full amount when you receive your credit card bill at the end of the month, you will not be charged for using the issuer's money on credit. However, if you only pay, to move 12,000 rupees, the remaining rupees. 8,000 will be added to the next month's bill and interest will be calculated. Some credit card companies may charge interest on a total of Rs. 20,000 since I paid the minimum owed. You must read the exact details of the minimum payment due and the interest fee carefully before getting your credit card.

Late Payments on A Credit Card & Your Credit Score

Some people don't pay their bill monthly and pay off in full after a few months, believing that it won't affect their credit score. this is not true. Every late or partial payment affects your credit score and makes it difficult to qualify for new loans or credit cards. Suppose you have a medical emergency in your family and you have unexpected hospital expenses. Faced with a temporary shortage of funds, you might think it's okay to make a few months late payments until you can pay the full amount again. You can be sure your good past record will justify some late payments.

This is not a correct assumption. Making a partial or late payment is perhaps the worst thing you can do for your credit score. Your payment history makes up 30% of your credit score and is the most important factor in completing your score. Credit rating agencies record all late or partial payments on your credit report, and any such score has a significant negative impact on your score. Therefore, it is important to make sure you try to pay your monthly credit card bills in full and on time to avoid damaging your credit health in the long run.

Minimum Due Amount on Credit Cards

The payment due date is the date the monthly payment is due. Any late payment after that date could result in the company charging a late fee, reporting a late payment to the credit bureau, or even being considered delayed. Therefore, it is important to ensure that you make the payment before the payment due date. There are many tools online that can send you reminders to make your payments on time. In the event that you are unable to pay the full amount on time, you can pay the minimum amount due to avoid any late payment penalties.

The minimum payment due is the lowest amount you can pay before payment is due while adhering to the legal terms of your card contract. Making at least this minimum payment is vital, or there is a chance that the credit card company may consider you an account delinquent, which has dire consequences for your credit history. The credit card balance will be carried over to the next month with interest. Generally, most credit card companies maintain a minimum outstanding amount of 5% of your outstanding balance.

For example, you bought Rs. 10,000 per month and your credit card bill is generated. You will now have a minimum payment of Rs. 500 paid to avoid any penalty.

Although the minimum amount owed can provide temporary relief, it is not recommended that you pay the minimum amount due each month. The balance due each month is interest bearing and becomes a debt burden over time. Therefore, it is imperative that you pay your credit card bill in full.

Secured Credit Card for Bad Credit

A secured credit card works just like a credit card, except that you need a fixed deposit to get it. The bank uses it as collateral in case of non-payment. People who do not qualify for a regular unsecured credit card usually use a secured credit card, either because they have bad credit or because they do not have sufficient credit history. Since a secured card requires a guarantee in the form of a fixed deposit with the bank, even people with or without bad credit can have a card, as the bank is protected against default. It's a fast and simple way to improve your credit score and build your credit record, as long as you make all of your payments on time.

People with bad credit can use a secured credit card to improve their credit score. By fixing negative past issues, your credit score remains the same and is not downgraded. However, to improve your credit score, you need an active credit limit. In such circumstances, you can take advantage of a secured credit card and improve your credit score.

Business Credit Cards for Entrepreneurs

Setting up and running a company successfully requires a steady flow of cash for both long and short term use. A business credit card is an instant way to get financing very fast. When applying for a commercial loan, there is an attached interest rate that would be very burdensome. But with a business credit card, you can enjoy a 0% interest rate if you can pay your bills on time.

You don't need a guarantee to get a business credit card. Plus, managing business finances and tracking expenses is easier with a credit card, as you get a monthly statement of account. Reward points, discounts, and cashback on purchases can help you save more operating cost. Entrepreneurs planning to start a business may find a business credit card and an ideal tool for managing the finances of the business.

Credit Card Protection Against Fraudulent Transactions

As per RBI guidelines, the customer will not bear any liability in the event of fraudulent transactions or if there is negligence on the part of the bank, even if the customer does not report the fraud. In the event of third party default, the customer must report the unauthorized transaction within 3 working days to avoid any liability. If the customer reports after 7 business days, the bank is free to determine the customer's liability.

Card issuers now provide another layer of security with the addition of a PIN. If you have a microchip in your credit card, you must also enter the PIN to approve the transaction. Only you know your PIN. Therefore, if your card is stolen, it cannot be used for fraudulent purchases as the payment without the PIN will not be approved.

All traditional cards are now being replaced by EMV chip cards. EMV is an acronym for Europay Mastercard and Visa, which both developed this technology. On a regular card, all user data is saved on it and remains forever. On an EMV card, new user data is created every time the card is used in any transaction. This prevents fraudsters from copying user data and creating a new card with the same details. EMV cards protect the cardholder from phishing, theft and phishing.

Fees on A Credit Card

Although there are free lifetime credit cards, they only have some benefits. But having a full-priced credit card makes you eligible for more features and benefits. Below are some of the fees charged to a credit card.

Annual Fee:

When the card is approved, you will be charged an annual fee as the cost of owning the card. These fees are automatically added to your bill annually. Some cards do not have an annual fee.

Deferred fees:

If you do not pay the minimum payment due on time, you may be charged a late fee. Make sure to mail the check before the due date or pay your bill online.

Other fees:

Credit card companies charge a variety of other fees which can include over-limit fees or bounced checks.

How to Increase My Credit Card Limit

Your credit limit indicates the amount of credit available to you on your credit card. However, to maintain a good credit score, it is wise to not spend more than 30% of your credit limit. So for example, if your credit line is 60,000 rupees, make sure that you are not spending more than 18,000 rupees every month. Consistently spending more than 30% of your limit means that you are under-credit or have no spending system.

As you advance in your career, your income may increase, and your eligibility for a higher credit limit may also increase. If you are judicious in repayment and have not defaulted, you can request an increase in the credit limit. After applying, the credit card company looks at your past payment history and agrees to increase the credit limit based on your income and eligibility.

Increasing your credit limit helps you spend more and keep your credit utilization ratio at a good level. If you believe you qualify for a credit limit increase, please contact the credit card issuer to approve your request.

Eligibility Criteria to Apply for A Credit Card

Many must have stumbled upon promotional emails, SMS messages, or advertisements on websites urging you to apply for a credit card. You may have tried to apply for the card through them and found you ineligible or you may not have shown interest in applying for it.

If you are interested in applying for a credit card, you will need to first verify your eligibility for the card before starting the application process. Knowing the eligibility criteria, you can get guaranteed fast approval. Here are some of the most important eligibility criteria you should know before applying for a credit card.

• Age: The applicant must be at least 18 years old. However, holders of supplementary cards can be at least 12 years old.
• The applicant must be an Indian resident. NRIs are also eligible for certain credit cards.
• The applicant should have steady income as required for the credit card. Both employees and self-employed are entitled to a credit card. Generally speaking, the minimum annual rent is Rs. 2 lakhs.
• You need to have a good credit score in order to be approved for specific credit cards. People without a credit score can use a credit card with their current income. People with lower credit scores can take advantage of a secured credit card with their fixed deposit.
• Aside from the above eligibility criteria, banks have their own internal policies and approval is subject to the sole discretion of the credit card issuer.

How many credit cards should a person have?

There is no ideal or average number of credit cards a person should have. It depends on factors such as your income, your monthly expenses, how you manage your finances, and your ability to plan and make timely payments on various cards. If you are new to credit cards, it is best to use one for some time and get used to the payment method. Once you feel comfortable and confident that you can get an additional refund, you can request another card.

Credit bureaus that establish your credit score consider a low credit card utilization rate as credit prudent behavior. Having more than one card can help you maintain a good credit utilization rate and maintain a positive credit score. Also, multiple credit cards can help you get a higher credit limit. You can split costs and manage your money effectively.

With more than one credit card, you can earn more rewards points, discounts, discounts and offers at many partner outlets and e-commerce portals. Because a credit card company associated with one leading commodity may not be linked to another. So, getting another card gives you the option to cover allied outlets to take advantage of discounts that can save you more money.

Choosing the Right Credit Card

Many people ask what is the best credit card. There is no best credit card, but the right one that fits your spending habits. Each person will have different needs in life based on his lifestyle, likes and dislikes. With this understanding, many credit card companies have designed individual credit cards in different denominations. User can make a comparative analysis and choose the one that best suits his interests and spending behavior.

If you are someone who loves to shop, you can choose a credit card that comes with great reward points and discounts on aspects of purchases. If you travel frequently, you can choose a travel credit card that includes discounts on booking flights and hotels.

Study your spending habits and compare the benefits of cards from different credit card issuers. Choose what suits your needs. Use bonus points and discounts to save on your monthly expenses.

Tips to Use Your Credit Card Smartly

If you are a new user of credit cards, it is important to ensure that you maintain a proper credit record and use your card wisely to avoid any damage to your credit file. Here are some tips to help ensure the safety of your balance:

• Always pay your bills in full and on time. Your credit card provider informs the credit bureaus of every late, late, or incomplete payment. This will greatly affect your credit score.
• Avoid continuously paying the minimum payment. The balance will be carried over to the next month, which will involve paying an interest rate that can become a burdensome at a later time.
• Don't buy things you can't afford, even if you have easy access to credit.
• Do not spend more than 30% of your credit limit. The less you spend, the better for your credit score. If you are spending a lot on your credit card, you can request an increase in your credit limit.
• Avoid using your credit card at an ATM to withdraw cash.
• Keep your credit card details and the phone number of your card issuer in a safe place so you can immediately report any theft or misuse of your card.
• Keep receipts of your credit card sales so you can compare it to your monthly credit card statement. Any discrepancies or errors should be reported promptly, as they can be reversed.
• Please read all terms and conditions carefully when obtaining your credit card for the first time so that you are aware of all interest charges, fees and other provisions of the card agreement.

Paying Credit Card Bills

Paying your credit card bills is important and helps improve your credit score. You can choose the following methods to pay your credit card bills.

Automatic payment

You can choose the automatic payment option when purchasing a credit card, allowing the card issuer to automatically discover the invoice amount. This helps you pay your credit card bills on time and keep your credit score safe. You can also choose not to participate in the automatic payment option if you think you cannot pay the full amount.

Online Payment Options

All credit card issuers allow you to pay bills online. You can visit their online portal and pay the bill by entering your card details and the amount to be paid.

NEFT / RTGS

If you have a bank account and are using net banking, you can pay your bill using the NEFT function. You can simply add the beneficiary details and transfer the funds from your account to the credit card company.

If your bill payment is huge, you can choose RTGS option that allows you to transfer more amount. This is best for ensuring that you pay your credit card bill on the same day.

ECS Payment

An electronic settlement system is an ideal option if you pay specific bills regularly. You can set up an ECS order where you can require your credit card company to submit an ECS payment request to your bank.

Mobile apps

Banks and credit card companies have created their own mobile apps that allow you to pay your monthly bill. Aside from that, there are some mobile apps that allow you to pay your credit card bills and offer discounts at points of sale and partner companies. You can simply download the app and pay your credit card bill using your bank account.

Pay by Check

This is another, easier way to pay your credit card bill. Simply put your card number and payee name on the check and drop it into the bank mailbox. It usually takes 2-3 days to process your check and make payment.

Cash out

This is the best option when you are either not aware of the above options or cannot. You can enter the branch of the credit card issuer and pay cash by filling out a form that includes the beneficiary data and the card number.

Frequently Asked Questions About Credit Cards

1. What is the best way to obtain a credit card?

You can submit your application online at the official website of the credit card issuer or at third-party financial websites. You can also get speedy approval of credit cards from the bank where you maintain a salary or savings account.

2. What is the minimum income required to obtain a credit card?

Each bank has a different income limit to offer a credit card. Generally speaking, most of the firms have a minimum of Rs. 2 lakhs per year.

3. Can I get a credit card without a credit score?

If you could! There are a few credit cards specifically designed for the purpose of earning scores. You may also qualify for a stable income source credit card.

4. What is the minimum amount due on a credit card?

The minimum amount due is a certain percentage of your outstanding balance. The lenders allow you to pay the minimum amount owed so you can avoid late fees. The rest of the balance will be transferred to the next month's account statement. However, the balance will carry an interest rate as specified by the bank.

5. How many credit cards a person can own?

An individual can have access to the largest possible number of credit cards. There are no restrictions. But you have to ensure that the payment is made on time and preferably in full to avoid paying the interest rate.

6. What do I do if an unauthorized transaction is made using my credit card?

You can inform the credit card company that you did not perform the transaction. You will not be responsible for the transaction and the payment will be revised based on your claim. It must be reported within 3 days after the fraudulent transaction.

7. How is the credit limit determined for your card?

The bank checks a variety of factors to determine your credit card limit. Includes income, credit score, debt, limits for other cards, etc. Usually up to 5 times your net monthly salary. However, this can vary for different people based on your credit profile.

8. Can I increase the credit limit on my credit card?

Yes, you can increase the credit limit by contacting your credit card issuer. Based on your past income and payment history, your credit limit will be revised.

9. Can I use my credit card in foreign countries?

Yes, but it depends on the type of credit card you use. Some cards can be used worldwide without restrictions. These cards may have higher annual fees, but they have higher reward points and benefits.

10. What is the CVV number on the credit card?

CVV stands for Card Verification Value which is printed on the back of the credit card. It should be kept confidential as it is used in many transactions over the Internet.

11. How many additional credit cards can I get for my family?

Most credit card companies allow up to 3 additional cards for your spouse and children. The holder of the supplementary card must be one of his immediate relatives.

12. How do I redeem my reward points?

You can redeem your reward points by visiting the official website of the card issuer. You can exchange points for gift items available on your card or convert them into cash if the card issuer provides this possibility.

13. What are the bonus points value?

Reward points may vary from bank to bank. Generally 4 reward points equal Rs. 1. However, some banks may consider two reward points equal to Rs. 1. It depends on the type of credit card and the benefits attributed to it.

14. How do I convert my major credit card purchases to EMI?

At first, you can check whether the product you buy has EMI function. If so, you can take advantage by selecting the EMI option. You can also contact the card issuer through the customer support team, SMS, mobile banking, etc. and ask them to convert your large purchases to EMI. Banks generally allow any purchases made over Rs. 2000 convertible to EMI.

15. What are the cash withdrawal fees with my credit card?

Most banks charge up to 3% of the withdrawn amount. For example, if you have drawn Rs. 10,000 with your credit card, you may have to pay a fee of Rs. 300. Cash withdrawal by credit card is not included in the interest exemption period.