Credit Cards
Product Description - Credit Card
Credit cards have become one of the best payment options for us nowadays. Yet, those who do not have one will be interested to know what a credit card or a lending bank is and who is eligible to apply. This financial article discusses the new offers and deals in Credit cards in simple language.
What is a credit card?
A credit card is an electronic form of money. It is a prepaid money card. The lending bank or credit card issuer gives a specific limit for cash withdrawal at ATMs and shipping within the credit limit. The cardholder gets a month or 50 days to pay back the spent amount on a particular date. There are no charges if they pay the whole amount within the due date. However, late fees and other costs are applicable if they fail to deliver within the due date. Thus, a credit card provides a cashless transaction and saves money on the credit cards, offers, and discounts given to consumers during festivals and other seasons.
What are the various benefits of credit cards?
Credit cards offer a variety of benefits that make them a popular payment method for many people. Some of the benefits of applying Credit Card Online include the following:
1. Convenience
Credit cards are a convenient payment option as they eliminate the need to carry cash or checks. Cardholders can make purchases online or in-store using their credit card, which makes shopping more accessible and hassle-free.
2. Rewards and Cashback
Many credit cards offer rewards programs, including cashback, and points, for every purchase made using the card. These rewards can be redeemed for various benefits, including discounts, free flights, hotel stays, or gift cards.
3. Build Credit Score
Credit card usage and payment history are reported to credit bureaus, and regular use and timely payments can help build a good credit score. A good credit score is essential to get loans, mortgages, and other financial products at favourable terms.
4. Fraud Protection:
Credit cards offer fraud protection that reduces the financial liability of the cardholder in case of fraudulent transactions. Card issuers have sophisticated fraud detection mechanisms that can help detect and prevent unauthorised transactions
5. Purchase Protection
Many credit cards offer purchase protection, which means that if a purchased item is lost, stolen, or damaged, the card issuer may cover the cost of repair or replacement.
Credit cards can provide many benefits, including convenience, rewards, fraud protection, and purchase protection. However, using credit cards responsibly and making timely payments is essential to avoid accumulating debt and bad credit scores.
What are the various documents required for applying for a Credit Card?
The documents required for applying for a credit card may vary depending on the issuer, the type of credit card, and the applicant's creditworthiness.
However, some of the standard documents required for applying for a credit card include the following:
Identity Proof- Passport, PAN Card, Voter ID, Driving License, Aadhaar Card, or other government-issued ID proof.
Address Proof - Utility bills (electricity, water, gas), bank statements, rental agreement, or any other government-issued address proof.
Income Proof - Salary slips, bank statements, income tax returns, Form 16, or any other documents that verify the applicant's income.
Employment Proof - Employment letter, business card, or other documents verifying the applicant's employment status.
Age Proof - Birth certificate, passport, or government-issued age proof.
Photograph - Passport-size photograph of the applicant.
Some credit card issuers may also require applicants to provide their credit score, employment details, or other financial information to assess their creditworthiness. It is always best to check with the credit card issuer for specific requirements before applying for a credit card.
What are the essential eligibility criteria for applying for a credit card?
The essential eligibility criteria for applying for a credit card may vary depending on the issuing bank or financial institution. However, here are some standard requirements that you may need to fulfil:
Age
Applicant must be 18 years old
Credit Score
Your credit score is essential in determining whether you will be approved for a credit card. A good credit score indicates to the issuer that you are a responsible borrower who will likely make timely payments.
Income
You may need to meet a minimum income requirement to qualify for a credit card. This helps ensure that you have the financial capacity to make payments on your credit card.
Employment Status
You may need to be employed or have a steady source of income to qualify for a credit card.
Residency Status
You may need to be a permanent resident or citizen of the country where you are applying for a credit card.
Documentation
To complete the application process, you will typically need to provide identification documents such as a government-issued ID, proof of address, and proof of income.
It's worth noting that meeting the essential eligibility criteria does not guarantee approval for a credit card. Issuers may also consider other factors, such as your credit utilisation, debt-to-income ratio, and payment history when deciding whether to approve your application.
What are the current offers on a credit card?
EMI offers are applicable on products and services like Amazon Online, Sony, Croma, Lenovo Laptops, Aviva Insurance, Nokia Mobile Phones, Yatra.com, ASUS Laptops, OnePlus Smartphones, Panasonic Home Appliances, VIVO Smartphones, Carrier A/c, VLCC packages, DAMRO Decors, Royal Sundaram General Insurance, Reliance Digital, LG Home Appliances, Life Insurance, HDFC ERGO General Insurance, DELL Computers, and MakeMyTrip.com.
In addition, card users get 5% to 25% discounts and cashback up to INR 250 on the purchase of products and services on LuLu Mart, V Mart, OYO Hotels, easy service, MakemyTrip, IFB Appliances, Haier Home Appliances, precise tip, yatra.com, app Smartphone's, Samsung Smartphone's, Havel's electronics and appliances, Whirlpool Appliances, and Voltas Appliances.