Credit card

What Is a Credit Card?

Credit card is a special type of facility or loan given by a bank, under which you can pay a certain amount for shopping and other work, with the help of this card. After that you have to return this amount to the bank in certain time.

Credit card is a plastic money just like a ATM card, using this card you can pay bill to shop/shopping mall, online shopping or money transfer. The credit card is also called cash advance and cash withdrawal. Along with this you can easily use credit card in your own country and abroad too. Credit card facility is provided by banks. In which some funds are provided by banks as a loan to consumers. You pay with credit card whenever you want to buy something.

There is also a limit on using credit card. It depends on the limit of your card. There should always be some amount left in the credit card, so that you can pay your credit card bill on time. As well as  you have to pay the interest along with the amount spent.

Benefits of credit card

you get the following benefits from credit card issuing:-

1. By using credit card, you can shop online from anywhere.

2. If you have credit card you do not have to take cash anywhere.

3. You are given a special discount or offered when shopping by a credit card in many online e-commerce stores and offline stores. Such as amazon, flipkart, snapdeal etc.

4. Through credit card, you can organize your monthly shopping.

Disadvantages of credit card

On the one hand, there are many benefits of credit card. On the other hand, there are many disadvantages of credit card.

1. Being a credit card, you never feel the lack of money. That’s why your expenditure increases.

2. If you do not operate your account properly you can also be surcharged.

3. your credit card score goes down because of late payment of credit card.

4. Nowadays online hacking has increased significantly. Which is why sometimes some people come in a hacker’s hunting and their credit card hacked. Which can cause you huge amount of economic damage.

Credit card is a special type of facility or loan given by a bank, under which you can pay a certain amount for shopping and other work, with the help of card, and after that, you have to return this amount to the bank in a certain time.

Credit card is a loan given to you by a bank, which you have to pay later with interest.

Credit card eligibility criteria.

If you want to take a credit card from any bank, you must know somethings before that. This is important information the bank wants to know about you before issuing a credit card. Based on this type information, the bank decides whether you are eligible for a credit card or not.

These important facts are as follows:-

Credit Score/Cibil Score :- If you have already taken a loan from bank or have any other bank credit, then it shows the history of your loan payment. Based on this history, you get bank credit score and are generally known as Cibil score. The better this rating is, the easier it is to get a credit card. Based on this information, the banks may estimate whether you return the loan to the bank on time or not. In the situation of this rating or bad credit score, you may find it difficult to get a credit card.

Income/salary of applicant :- Banks also take full information about your income before issuing a credit card. If your income is less than the income set by the bank, then you can’t consider paying a bank credit card. Just as if the bank has set income limit ( Rs 25 000/-) to issue credit card and your income is less than that, then you will not be eligible to get a credit card.

Age of applicant :- The bank issues credit card to the person whose age is 18 years or more. In other words an adult can apply for a credit card only.

Borrowing second debt risk :- If you have taken more loan from your loan repayment capacity, then in this case, the bank can also refuse you for a credit card. For example, if you have taken a home loan from a other bank and a car loan, whose total monthly installments are more than 60% of your income, in this case the bank will not accept your credit card application.

Employer- employer of applicant :- Before issuing credit card, the banking company also wants to complete information about your employer or business/profession. If this information is not satisfactory and you are working in a place that is not permanent then you can not get a credit card.

Your transaction with bank :- Nowadays almost everyone gets their salary through the bank. In this case if your salary account is in the bank from where you are applying for a credit card it is easy.



No comments:

Post a Comment