The credit card has changed the way as to how people spend their money in stores as well as online. It is a card which represents a line of credit. The money will come from a credit card issuer, and it will be assigned to a certain amount of limit based upon the information of the user. Then the card can be utilized for purchasing or spending on various things. It is to be taken note that the credit card is not to be considered as a free money source, neither it is a charity nor a donation made to the user. The amount utilized from the card has to be paid back by a specific set period. If the payment is not made by the due date, then a certain amount of interest has to be paid by the user and in some cases, a late fee. The amount of interest to be paid back is termed by the credit card issuer. Also, dont miss Walmart Credit Card features.
It is not necessary to swipe the card every time to make a purchase. If purchasing is done online, with the input of relevant card details, the shopping or product purchasing can be done.
The processing of Credit cards goes through mainly four steps of authorization, which is done in a matter of seconds.
These steps are often unknown, even to the users themselves but only after successful steps, the payment is made. Once the purchase is done, the user will get a notification regarding the amount that has been deducted from the balance. That amount is to be paid back within a certain amount of time. There are various ways offered by the credit card issuer through which the user can pay back the amount. It includes the options such as, the payment can be made online, through the mail, balance transfer, over the phone, or through the feature of auto debit where the company can directly avail the amount directly from the user’s bank account or paycheck, whichever is confirmed.
There is a fixed criterion to make a monthly payment which is set a minimum that the user has a balance on the card. It any amount of money is not owed, and then there is no need to make a payment. If the payments are not being made on time, then a certain amount of extra fees has to be paid which may extend beyond the minimum payment. The interest charges are often waivered by the credit card issuers if the due amount is paid regularly, but if the amount is not paid back, then full interest will be charged on the total outstanding balance by the bank.
Credit cards have changed the whole perception as to how the money is spent for various purposes. Since the launch of credit cards, it has been more beneficial to the merchants as well because the transactions done through credit card are much more secure compared to the other ways of payments such as a cheque.
There are various types of credit card such as secured credit cards, business credit cards, prepaid cards, as well as digital cards. These cards can be availed as per the accordance of the buyers to fulfill their needs.
It is a relatively straightforward process to avail the service of a credit card. The user has to be over the set age limit and must have a job which would ensure the credibility of the user’s ability to pay back the money. The application can be filled up offline or online, depending on the terms of the credit card issuer. More people are availing the feature of applying for a credit card online, as it is more comfortable and can be approved in a short time compared to the other methods.
Benefits of Best Credit Cards in India 2018:
A credit card can also be utilized for common resources apart from just shopping or making purchases online. The main advantage of a credit card is that even the large purchases of big items like electronics or travel packages, jewelry. The advantage is because the funds might not be available to the user at that exact instant, and in such situation having a credit card might come in handy. It also enables the user to earn rewards as well as build credits.
The user should always remember that the credit card will act as a provider of a set amount which needs to paid back and should be considered as a short-term loan. The fixed amount of credit issued to the cardholders will have an APR( annual percentage rate) with it which is to be paid if the interest charges occur.
If the requirement of the credit is understood, the value of the credit card is extremely high if used responsibly by the users. It is valuable in terms of travel purpose, earning rewards, unplanned expenses as well as essential in building credit.
Earning of credits and rewards in the form of cashback and travel points as well as discounts which are beneficial. Credit cards are also helpful while on a traveling trip as some of the major hotels and car rentals require it for the booking of a vehicle or a room. The main advantage of a credit card is that if by some issue, there are not the necessary funds with the user, a credit card can be essential and useful for increasing the purchasing power of the user when in need.
Security features are updated regularly so that in a case of fraud or theft, or in a matter of suspicious activities, an alert can be known instantly to the user by means of mail or text message and the user can stop the services of transactions immediately. As the card is not linked with the current or savings account of the bank, the risk decreases of the access to the funds in the account.
The benefit of a credit card is best availed when it is used responsibly. It is of utmost importance that the user plans effectively regarding the payment options and how to spend the high amount of line of credit responsibly. It is of vital importance that the spending of the credit not be done on the impulsive spending and it is beneficial if the amount deducted is paid back within the time limit which will be essential in building up of the line of credit.
It is vital to maintain the line of credit and make the timely payments. It has made life easier for the users when it comes to the large purchases of necessity items when there is a scarcity in the funds. For promotional offers, credit card issuers sometimes offer zero percent balance transfers for the new customers.
The benefits of the credit card are vast and numerous if utilized properly and effectively.
List of Top 17 Best Credit Cards in India 2018
13. IndusInd Bank Credit Cards
14. Kotak Mahindra Bank Credit Cards
17. South Indian Bank Credit Cards
Which Credit Card is best in India?
The increase in the number of banks across the country and an extensive range of products as well as services offered by them has also increased multifold. That makes it more difficult to single out the best credit card in India. Credit cards have been launched at such a large scale that there are at least 2 credit cards offered by each bank. Then it comes to the annual income of the users as due to that, their credit limit is decided, and a version of the credit card is offered. For elite people, there is a higher range of credit card which provides a higher credit limit and an extensive list of benefits. The best credit card can be determined per set category of the users and their needs, as well as their credit limit and benefits offered.
There have been various cases registered for the instances of fraud in recent times due to the internet usage as well as lack of scrutiny and carelessness of a user sometimes, but the banks ensure that there are specific measures to be taken to prevent further damage. By calling the customer service center and notifying about the suspicious activities regarding the card, the user has the advantage to block the card as to which no further transactions can be done and in case of fraud, the amount lost is often covered by the banks if the report is filed within the time period of company policy. So it of utmost importance for the user to avail the service of a credit card which covers all these features to maintain a high level of security which in turn would ensure the lesser probability of the occurrence of fraud.
For all class of people, there is a different availability of the credit card as per their criteria and eligibility. There are variations in the type of credit cards as well as they are bifurcated for personal use and also Business Credit cards and even in then there are certain categories of the platform offered by the card issuer which has their own benefits. That makes it easier for the choice of the cardholder and what kind of benefits the person would like to avail. It is a competitive market, and in most cases, the benefits and offers issued by most of the banks are commonly same and then it all boils down to the requirement of the user and the trust of the user for a particular bank. Some credit cards offer better travel benefits, whereas some provide the benefits for shopping and lifestyle whereas some cards offer all the benefits that would fulfill the basic needs of the cardholder.
The tag of best credit card will vary from person to person as the needs and demand of all the cardholders is not the same, and as a result of it, there will always be a difference of opinion.
The credit card has changed the whole scenario as to how payment is made in the market. It has made it easy to spend the amount when it comes to buying merchandise, online shopping, and secure transaction. The credit card of most importance when there is a shortage of money in a person’s account, and for emergency service need. With the advancements in technology and the services as well as the benefits offered by the banks ensure that the users can live a luxurious and comfortable lifestyle.
It is highly advised that the cardholder should understand that the amount offered in the credit card is not free money or a charity and should be considered as a short-term loan which has to be paid back on a regular basis. A credit card is issued only after each criterion for eligibility is met, and a monthly billing cycle is considered. The increase in the number of credit card defaulters is due to the reason that it is taken for granted as free money to spend carelessly and when the users realize their mistake it is too late for that.
The credit card has been extremely beneficial to those who have thoroughly understood its policy and the limitations and are spending the amount only after proper consideration. Apart from a line of credit, credit card offers various other features which have made it a big hit in the market. The benefits offered ensures that the user can thoroughly enjoy the lifestyle be it for entertainment purpose, travel bookings, dining benefits, care for health and wellness as well as concierge services for any issues or referrals or booking as per the accordance. Benefits for the medical care such as accidental deaths, emergency medical assistance while traveling abroad are taken care of with the help of insurance coverage.
Credit card debt has been increasing steadily, and most of the age group is of youth only who suffer from the debt issues. It is essential that before issuing a credit card for personal use, thorough research is done about the services and benefits offers and most importantly, to properly read the terms and conditions as well as the hidden costs.
The enabling of EMV chips and other security measures offered by the bank ensures that all the transactions done by the cardholder are safe and in case of loss of card or theft, effective countermeasures can be applied for the safety purpose. The bank also offers the grace period to the users. The grace period is considered as an extended time period for the payment dues before the bank starts assessing interest on the user. The grace period can usually range from 20-55 days as it depends upon the type of credit card a person is using.
Hence it is recommended that a credit card should be availed after thorough thought process and consideration as if the terms and conditions are not understood correctly, then that can lead to further issues as well as higher rate of interest. All things said, credit cards are incredibly beneficial in various cases, and if used properly to its merits, the cardholders will enjoy various perks of living with the facility of credit cards.
Smriti Jain is the owner and senior content publisher at Financesmarti. Financesmarti is a website where she shares a lot of useful stuff for the people and business of India. This includes small business ideas and other banking information, as well. Smriti completed her education in science & technology from Delhi University. Smriti usually has interests in digital marketing now, and she has chosen this career for the full-time opportunity. The primary purpose of starting this blog to provide quality information on the banking industry to the people.
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