Credit card is a payment card used to pay a merchant for goods and services based cardholder’s promise to repay the amount utilized from the bank with other charges which are applicable.
Bank that issues a card to customer will have a revolving account which enables the customer to utilize the amount and repay on-time.
The different categories of credit cards are:
- Auto / Fuel Credit Cards
- Balance transfer Credit Cards
- Business Credit Cards
- Cash-back cards
- Classic Credit Cards
- Co-branded Credit Cards
- Contactless Credit Cards
- Credit cards for Women
- Entertainment Cards
- Gold Credit Cards
- Lifestyle Cards
- Platinum Credit Cards
- Premium/Signature Credit Cards
- Prepaid Credit Cards
- Silver Credit Cards
- Titanium Credit Cards
- Travel Credit Cards
How to apply credit card online?
To apply credit card online one must visit the bank website and fill in the online application form and once it is submitted bank will contact the customer for further processing.
Eligibility criteria for applying credit card
- Applicant should meet the age criteria of the Bank for them to assess repayment capacity. Minimum age is 21 years and Maximum age is 60 years
- Regular income source should meet the requirements of bank. Income source is important to identify the maximum credit limit to be given to customer
- Applicant must have good credit score and should not be defaulter.
Required documents to apply credit card
Proof of Identity:
- PAN Card
- Aadhaar Card
- Voter’s ID Card
- Passport
- Driving Licence
- Any other government-approved photo ID
Address Proof:
- Aadhaar Card
- Passport
- Utility bills
- Voter I’d
- Driving License
- Postpaid Bill
- Landline Bill
- Rental Agreement
Proof of Income:
- Salary slips for the last 3 months
- IT Returns for self employed
- Bank statement for the last 3 months
Factors affecting Eligibility Criteria
- Income of the applicant – It is very important to check repayment capacity
- Existing relationship with the bank–If customer is already having savings account then it is easy for bank to track transactions
- Past credit history – poor track of repayment for bills in the past
- Age of the applicant – Age defines repayment capacity
Features/Benefits of Credit card
- Alternative to cash.
- Credit limit.
- Payment in domestic and foreign currency.
- Records of all transactions.
- Regular charges.
- Grace period.
- Bonus points.
- Gifts and other offers.
Things to know about credit cards
Different cards to choose from – Customers should choose the card as per their regular transactions
There’s no perfect number of credit cards you should have – Customers can have many cards based on their transactions
You must understand your card’s interest rates – It is very important to know interest rates as rates may differ from bank to bank and late payment may burn a customer’s pocket
Comparing cards is vital – Compare cards from different banks to make sure to get the best deal in terms of interest rates and maximum credit limit
The contract is binding – Once customer signs the agreement they are legally bound to rules and regulations by the bank. Few points regarding rules
- Credit line/limit.
- Annual percentage rate (APR).
- Interest calculation method.
- Fixed or variable APR.
- Grace period.
- Fees.
Why choose us?
Loan trust is most trusted entity for helping customers to avail loan and credit cards from different banks as per customer’s requirements.
Experts in the team have proved to be most effective and efficient in terms of handling customer’s queries which can help in quick disbursement of loan and credit card.
Loan trust ensures hassle free process without any hidden processing charges which customers are always worried about
Credit card FAQs
Do all credit cards feature an annual fee and joining fee?
An annual fee is one of the most common credit card fees. It is automatically charged to your credit card every year.
Can I get cash from the ATM using my credit card?
Yes, but it is not advisable to withdraw cash as interest rate is very high.
Can my credit limit increase later on?
Yes, Credit limit will be increased by bank looking at your credit score and regular transactions.
What is a secured credit card?
A secured credit card is backed by secured payment used as collateral on the account.
What is the difference between rewards and cashback on credit cards?
Cashback credit cards will give back a percentage of your purchase in cash when you use your card.
Rewards credit cards earn points for every purchase made and can be redeemed by purchasing a product
What are the basic eligibility criteria for credit cards?
- Age
- Credit score
- Regular income source
What is a premium credit card?
Premium credit cards offer a wide range of benefits. These cards are loaded with benefits across multiple expense categories. These cards help you save money by enhancing your finances and offering rewards.
What is credit card balance transfer?
Credit card balance transfer is the transfer of the outstanding debt (the balance) in a credit card account to an account held at another credit card company
Are co-branded credit cards available in India?
Yes
What are milestone benefits on credit cards?
My Credit Report does not show information on my new credit card. Why?
What is lost card liability cover?
When customer loses his card or if it gets stolen, he must inform the bank immediately in order to deactivate card and avoid fraud. Liability fee on a lost or stolen card is payable on the expenses incurred during the period between the loss and customer informing the bank.
Do credit cards come with specific cash withdrawal limits?
Yes, credit card comes with specific cash withdrawal limits
How to read credit card statement?
Key details to check-in credit card for effective usage
- Payment Due Date
- Account Summary
- Minimum Amount Due
- Billing Cycle
- Total Credit Limit
- Available Credit Limit
- Cash Limit
- Rewards Point Summary
- Transaction Details
What is the minimum amount due?
Minimum amount due is the amount that has to be paid
How can I pay my credit card bill?
Credit card bill can be paid by connecting the card details to savings account of the same bank or through NEFT/RTGS/Cheque of different banks.
What does credit limit mean?
Credit Limit is the maximum amount that can be utilized by a cardholder. For Ex – If a person has a credit limit of 1,50,000.00 he can use up to 1,50,000.00 and not more than that
What is the difference between a credit card and a debit card?
A credit card allows you to purchase a product and gives 40-45 days of time to pay the amount but on the debit card, you need to have money in the card before you purchase any item.
Do credit cards offer protection against fraud?
Yes, banks offer protection against fraudulent transactions.
What is credit utilization ratio?
The credit utilization ratio is the percentage of a borrower’s total available credit that is presently being utilized. Reducing the credit utilization ratio can facilitate a borrower to enhance their credit score.