What is Credit Card, How to Use Perfectly for Rewards & EMI

A Thin plastic card issued by Financial Institutions which allows you to borrow funds to an approved limit is termed as a Credit card, and the limit of credit cards is decided by the bank or financial institute that issues it and based on your score there are chances to increase the borrow limit.

Having a good banking transaction will automatically allow you to be eligible for the higher limit of Credit cards, and this borrowed amount will be deducted from your bank account as per the date of payment agreed on every month.

Thus Any customer can utilize this amount for any purpose and get it returned before the due date fixed by the Bank. As per the guidelines of Reserve Bank of India, any individual who has met these criteria is eligible to avail a card as follows.

Who can Avail or How to Get Credit card?

1. Applicant should have crossed 18 years of age
2. Salaried or self-employee with proof of ITR filing
3. Having a Saving Account in any Bank
4. Should have a valid Indian Address
5. Have met the requirements of card issue in terms of income

How to use a Credit card?

Avail Interest free credit from respective banks for over 50 days and get it repaid under this grace period to avoid any interest on the amount. These are some points that need to be considered while using a Credit card.

• Using Grace Period Perfectly: The grace period includes 30 days of billing cycle with 15 to 20 days from date of statement generation. Making an expense after billing will let you avail 50 days of interest free credit balance.
• Shop Online to Earn Reward Points: Every card does offer 2x reward points during online shopping, thus making use of it to correctly increase your reward balance.
• Convert your Spends to EMI: If you have purchased an item by using full balance and thus seems difficult to reply to it, then customers can avail EMI facility to repay and utilize the amount through regular monthly installments.

How Does a Credit Card Work?

Using Credit card for any transactions means payment being made by Bank on your behalf, and make any number of transactions using cards under the approved limit and get a summarized statement of your total transactions.

Thus by looking at the statement you can make the due amount to be paid as well as the exact date for payment, and Statement Includes Available credit and cash limit, Minimum Amount Due, Total Amount due, Interest Charges, Payments done and due date for payment.

Types of Credit card

There are multiple cards available out there which are issued by various Banks and Financial institutions, thus this list of cards should be opted wisely as per your usage.

Card Type	Features of Credit Card
Travel card	If you travel a lot and do many transactions during your travel then having a Travel card will benefit in many ways. This also gets you booking discount in Hotels, Flights and in more ways.
Fuel Card	Get your transport cost in limit by using Fuel Credit card which allows you to get benefited by its regular usage. This gives extra reward points then, and while used in Fuel Pumps and which can be later utilized as savings.
Shopping card	This type of card comes with an it’s of shopping partners, thus having any shopping form their listed partner will make your discount and get vouchers.
Secured card	This is a unique type of card which is offered based on your Fixed deposits. Thus they avail interest on your amount saved and will help your score.

Different Types of Credit Card Payment

Making payment is easier if you have got your card in your hand, Thus Credit card payment of any bank is accepted by making payment from any payment mode listed here.

You need to pay the amount before the due date by visiting the respective bank or using any electronic mode of online payment, These are the few modes of payments accepted by any Credit card for payment due.

• Payment from BILL Desk
• Payment from NEFT
• Payment from Net Banking
• Payment from NACH facility
• Payment from Cheque