Submitted by: Logintoloans Logintoloans
About Credit Card
Credit cards emerged as a big alternative for bundles of cash in wallets during recent times. They are alternatively called as plastic money. Security and convenience offered by cards made them a popular option. These credit cards play a key role in increasing your purchasing power of the user. A customer holding a good credit card will enjoy an interest-free credit period throughout till the due date. A credit card keeps you worry free about the balance in your current account, while you make a purchase. You are obliged to repay the used credit limit at the due date. Defaulting the timely repayment of the credit with penalizing you with the late payment fee and interest rate as well. There is no pre-payment penalty while using these cards.
Benefits and Features
Increase purchase powe
Emergency cash assistance
Interest-free credit period
Why is credit card a good idea?
The credit card is a proven alternative for bundles of cash in the wallet today. Using a credit card as a cash alternative keeps you worry free about the cash in your current account. A right amount will be deducted from your credit limit towards the payment after you make a purchase so; there is no worry about making a wrong payment. Many banks are benefiting the customer with reward points on each purchase. Making a big ticket purchase with the credit card will not only offer you the convenience but also entitle you to cash back rewards, miles rewards and much more. The best part is, the user of the credit card gains the privilege of enjoying an interest-free credit period from the bank that has issued the credit card.
How is credit card different from the debit card?
The debit card is another alternative for cash in hand. It also entitles you to make a digital transaction limited to the balance in your account linked to a debit card. Unlike a credit card, the debit card cannot enhance your purchasing power more than the balance that is available in your account. A transaction made through debit card will debit the funds from your account immediately in the case of credit card purchase, you will be obliged to repay the amount only at the due date. Unlike the debit card, any big ticket purchases can be easily made without worrying about the money balances in your account. You can even exceed the credit limit in the case of emergencies, banks ask you to pay the high-interest rate for the exceeded limit ( approval subject to the banks discretion).
Types of Credit Cards
Secured Credit Cards
The secured credit cards are backed by money deposit as collateral. You can use the card up to the relative credit limit. These cards are mostly used by the people who are yet to establish their credit history. Fetching these credit cards is quite easy because the risk of issuing them is relatively low. Keep your spending relative to your credit limit in order to establish a strong credit score, which is important for fetching different types of credit cards and loans offered by the banks in future.
Standard Credit Cards
These credit cards are easy to understand, try these credit cards if you are using the credit cards for the first time. These cards hold revolving credit balance up to a certain credit limit which differs from customer to customer depending on their credit profile. Once you repay the used amount at the end of the credit cycle, a credit limit is again available for your purchases. A penalty is levied on the outstanding balances at the end of the credit cycle.
Rewards Credit Cards:
This type of reward credit card is a popular option among the users today because they earn rewards while they spend. It can be in the form of cash back or miles or travel offers. They also get a chance to earn reward points as signup bonus and renewal bonus etc. You can either redeem these rewards for cash or merchandise of your choice. If you are a frequent traveler, travel rewards cards turn to be your priority because they earn you free flights, hotel stays, and other travel benefits.
Auto / Fuel Credit Cards
Fuel cards turn to be your option if you hold a vehicle that is used for long and local transportation. These cards reward you with cash back and surcharge waiver on every fuel purchase. These accumulated rewards points should be redeemed for refueling.
Balance Transfer Credit Cards
Most of the credit cards offered today come with balance transfer option. The benefit of using balance transfer cards that are specially designed for the purpose is, they come with a low introductory rate on balances for a specific period. You can make the payment of your old card balance at no/ lower interest rate for a certain period of time. However, there is a nominal fee for balance transfers through these cards.
Student Credit Cards
These cards are specially designed for students to help them establish the credit history. I would be easy for the student to get these credit cards through third party service providers like logintoloans.com. You may enjoy many additional features like low balance transfers and interest rates.
Business/Corporate Credit Cards
These business credit cards are designed to add great convenience to the business owner in managing the finances effectively. The manager can issue credit cards to the employees for making business transactions. As an additional benefit, the manager can get the name of the company embossed on it.
Contactless Credit Cards
These credit cards are designed with unique payment technology that allows the user to make the payment through POS terminals. There is no need for you to enter any PIN to make a transaction, so these cards are extremely secure.
Subprime Credit Cards
These credit cards are issued for the people with bad credit. They have high-interest rate and fee. These cards are a good option to repair your bad credit.
Limited Purpose Cards
As evident by the name, these cards can be used for a specific purpose only. They have a low credit limit and low finance charges as well. Store cards and gas cards are few examples of this limited propose card.
International Credit Cards
International credit cards are for the global travelers. These cards offer a great convince while making international purchases. You can keep away from the headaches of currency conversion and it offers more security on your international trips.
What should know about the credit card?
The credit card is similar to short-term loan that you avail from the bank, but the difference is you enjoy interest-free credit period. Defaulting payment will penalize you with late payment fees as well as the interest rate for the outstanding balance. When you use credit cards for a purchase, the banker will give a grace period of the billing cycle. Prompt repayment will help you build a good credit score.
It is important that you know about the grace period when you use a credit card. The grace period is nothing but the interest-free period after you billing cycle. Any purchase made within the due date remains interested-free. If billing cycle is from 1st January to 31 January and the due date is March 1st, the period between the billing date and the due date is called a grace period. If you dont repay the used credit by the due date, you will be liable to pay interest and other charges.
Interest rates on the credit cards are high when compared to other types of loans offered by the banks. Not only outstanding balance, the purchases you make thereafter will attract high-interest rates until the complete balance is paid off.Cash advances on the credit cards will also have high-interest rates with no grace period. These banks will charge the interest rate on the advances from the day one till you pay off.
How will logointoloan.com help you?
A customer looking for a credit card will be perplexed with a wide range of credit cards offered by different banks. It is important that you choose the right credit card for your lifestyle by analyzing different factors. Our expert team is equipped with deep knowledge about various credit cards offered by different banks, so we can help you in picking the right one. We help you take an informed decision about choosing the right credit card that fits your lifestyle.
Our team of experts keeps themselves updated with different types of credit cards offered by banks. Rather than picking the offer that comes on your way blindly, a decent research will help you pick the card that fits your lifestyle requirements. Our experts discuss the features of different credit cards that are available in the market from time to time and help you take an informed decision. We will educate you about different aspects that you should look in while choosing a credit card.
If you are managing your monthly expenses through credit card purchases, these cash back cards turn to be a right option for you. Apart from benefiting the regular discounts offered by the stores, you will get cash back rewards on every purchase you make through cards. Our team has a knowledge about different cards with the cash options and help you pick the right one as per your requirements.
A delayed payment always draws interest towards the outstanding balance. Interest rates vary from card to card and most of the users will have difficulty in understanding the interest on these cards. Though you are prompt at repayment, delayed payments may happen at times. We help you understand how the interest rates are calculated on credit cards so that you can make a right choice.
Before you apply for a credit card, our expert understands your purpose of applying for the credit cards and suggest you the right options available. If you are a loyal customer of the specific store, you can opt for the discounted cards offered by partnered banks.
Many credit cards offer reward points program to draw the attention of the customers. Our expert team makes you understand reward programs offered by the banks and help you pick the cards that match with your spending patterns. Our team will educate you about many other aspects like international transaction fees, cash advance fees, the fee for exceeding the limit and much more before picking a card.
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About the Author: Credit Cards in India: Apply online for best credit cards at ICICI, DCB, Citibank, HDFC, SBI, AXIS, HSBC, Standard Chartered, Indusind Bank, Kotak through
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