Credit Card: How Does It Work?
A Credit Card is basically plastic money that is used as a method for making a payment, thus facilitating your purchases. Credit cards are a very useful payment mechanism as you don’t have to carry around much cash for your purchases. They are especially useful for people who shop or travel frequently. The money spent on your card is payable to the issuer bank at the end of a monthly credit cycle. (Most banks provide you a free credit period of around 50 days)
Personalised Service: Our trained Relationship Managers will understand your requirements and your profile and help you find the most suitable Credit Card offer.Why DialaBank?
- Rate Comparison: We help you understand the details of all costs involved in taking a Credit Card and help you find the right card.
- Research: Benefit from our detailed research on all the products from the leading Credit Card players in the and make the right choice.
- Zero Charges: Dialabank offers Home service to its customers In at zero fees. Use our services to find the right Credit Card offer at no extra cost.
- Unbiased and Transparent Search: Our objective is to simplify your Credit Card search and we provide information in an unbiased and transparent manner.
Benefits of Using a Credit Card
- No Need to carry cash: Carrying a single card in your wallet may be very convenient vs stocking notes. Also, plastic money is much safer to carry around since the same comes with inbuilt insurance.
- Free Credit Period: Most Card issuers permit a free credit period up to 50 days. This gives the benefit to the card user of enjoying the purchases on free credit during this period.
- Borrowing Cash: You can also withdraw cash through the ATMs. There is a one-time transaction fee and interest charged per month
- Enjoy various discount schemes: a lot of credit cards especially co-branded credit cards offer discounts and special offers to the user for making purchases
- Online Payment facility: Credit cards are very useful for making purchases on the Internet.
- Reward Points: As you spend on your card, you accrue reward or loyalty points that can be redeemed for various merchandise.
Credit Card Eligibility
Want to have a credit card? But, unsure of the eligibility requirements? Check the basic credit card eligibility requirements down below:
- Nationality: The applicant must be an Indian citizen (some banks may provide credit cards to NRIs).
- Age: The applicant should be at least 18 years old.
- Employment status: Both salaried, as well as self-employed applicants, are eligible to avail a credit card.
- Income: A steady income of at least Rs 18000 and above is required to avail a credit card.
- Credit score: A good CIBIL score of 750 and above, with no history of default, is essential to get a credit card approved.
Documents Required to Avail a Credit Card
- Complete credit card application form with legit signatures
- Income Documents:
- Salaried in MNC – salary slips of past 6 months
- Salaried in a Private Limited Company – Salary Slip copies
- Self Employed – ITR Filings along with business transaction reports
3. Address proofs, identity proofs and Form 60 are also required.
Factors To Consider Before Choosing a Credit Card
There are various factors that one must consider before choosing a credit card for himself:
- Joining Fee and Annual Fee: Low-end cards are available at zero joining and annual fee whereas the high-end premium cards come with one or both as charges for holding the card.
- Interest Rates: In case you pay you entire outstanding on the due date, you are not charged any interest. However, if you revolve your outstanding balance till your next billing cycle, then you are charged Interest @ approx 3.0% to 3.5% per month on the entire amount. In case you wish to revolve on your credit card, you should go with the issuer bank that charges the least rate of interest.
- Co-Branded Cards: Issuing Banks tie-up with leading retailers, airlines, hotels etc and provide co-branded cards that offer exclusive privileges to members by offering benefits and discounts. In case your spending pattern is high on a particular brand etc, it may be useful to check and take a co-branded card for the same.
- Interest-Free Period: Also called the grace period, this varies from bank to bank and provides an interest-free window to the client on the purchases made. It is wise to go with the bank that offers the longest interest-free period.
- Reward Points: Different issuers offer different reward points per Rupee spent on the card. Frequent users can avail a variety of benefits for making purchases on the card. Check the reward point program before signing up for your next card
Credit Card: Encashing Your Reward Points
Most loyalty programmes work by giving cardmembers ‘reward points’ for spending on their card. In the card industry parlance, this is called ‘Earn’. These earned points can then be redeemed (or ‘burned’ ) for travel, shopping, dining and entertainment.
“Many of us dismiss these programmes as marketing gimmicks, but the fact is that on the whole, these programmes are scientifically-designed frameworks that work for the benefit of credit card members, merchants and card companies. In fact, reward points are becoming the new form of consumer currency and increasingly, savvy customers are swapping them, donating them and redeeming them in a wide variety of ways.
How to Apply for a Credit Card?
Because of the rising demand for credit cards in the market nowadays, banks and financial institutions have made the application process simple and easy for the customers. You can apply for a credit card both online as well as offline:
Applying for a credit card online is a very simple process. Just follow the steps mentioned below to enjoy a hassle-free experience:
- Visit our website dialabank.
- Fill in your name, income, location and select credit card from the options given.
- Click on “Request a quote”.
- Wait as our relationship manager will soon get in touch with you over your credit card query.
People who are not comfortable with an online mode of application can visit the nearest bank branch personally to apply for the same:
- Google the nearest branch online and visit the branch personally.
- Enquire about a credit card with the representative.
- The representative will guide you about the cards that match your best needs.
- Fill the application form and provide KYC documents such as identity proof, address proof, etc. to complete the process.
- Provide income proof and two passport-sized photographs.
FAQs About Credit Cards
- What is the main difference between a debit card and a credit card?
Using a debit card you can draw money from your account immediately. Whereas a credit card enables you to borrow the money in the form of credit and you will have to pay the amount bank within a stipulated time period.
- What will be my credit card limit?
Credit card limit is the maximum amount that one can spend using their credit card. Depending on your card you can have a high limit for the credit card.
- Can I avail a credit card online?
Yes, You can apply for a credit card online, on our website and can get a card instantly. On applying online your card will be disbursed within a few hours.
- What is the minimum credit score for a credit card?A credit score above 650 is ideal to be able to get a credit card
- Can I get a credit card without a job?
Even if you do not have a job and have a pretty substantial inflow into your account every month or so, you are eligible for a credit card.
- Can I get a credit card in a day?
Yes, you can avail a credit card on the same day due to the online application system. However, the physical process of credit card disbursal may require more than one day.
- Do credit cards also come with an airport lounge and other benefits?Yes, a lot of credit cards come with access to domestic and international lounges at airports and other benefits available only to the credit cardholders.