You must have a credit card in your purse by now as it helps you in overcoming all your financial problems every now and then. Credit card is issued by financial institution which helps you in making necessary purchases within the specified limit. When credit card is swiped during purchases then money is taken from the pre-approved limit given to you with this card.
Normally, 30-45 days are given are interest free period to pay back the credit card amount. Unpaid dues attract higher interest rates that are levied till they are paid back in full.
Credit Card Pin
To make a valid purchase, credit card personal identification number (PIN) is issued to the cardholder. Now is the facility to let the cardholder create a PIN of his own. PIN can be created through online banking, bank ATM or with the help of SMS.
How To Use A Credit Card?
Credit card helps the cardholder to make cashless payments on his purchases. Cardholder can make purchases or withdraw cash as per the need keeping in mind the specified limit of the credit card. Credit card easily can be used for online and offline transactions. A credit card, if your bank permits, can also be used at the bank ATM for cash withdrawal as well.
Credit Card Limit
Different banks offer different credit limit on the credit cards issued by them. This limit is the maximum amount that a user can use for his purchases, online transactions or ATM withdrawal.
- 1) Total Credit Limit:
When the credit card is issued then it comes with a maximum credit value and that value is the total credit limit of the card. Bank also inform the same before issuing the card and it remains the same until it gets revised by the bank.
- 2) Available Credit Limit:
This is the available amount that a card gives on spending at a point of time. It is the difference of total credit limit and amount spent on the card. This keeps on varying with the spending and repayments done by the cardholder with the card. When all the dues get cleared then the amount becomes equal to the total credit limit on the card.
- 3) Cash Limit:
Credit limit amount also includes the amount allotted for cash withdrawal by using a credit card. It is the maximum amount that card holder can withdraw by using a credit card.
Features Of Credit Card
- Not only debit cards help in withdrawing the money from the ATMs, a credit card with maximum cash withdrawal limit also helps in doing the same.
- Credit card holders get atleast 30-45 days buffer period to repay the money and that too interest free. In case the cardholder defaults in repaying the amount within the given time frame then he can avail revolving credit option. This allows the cardholder to pay 5% of the outstanding amount and this also helps in waiving off the late payment fee every month on the total amount.
- There is rewards point programme that comes with every credit card for the cardholders. Various banks offer various reward points that attracts more and more spending by using credit card and new customers of the credit card as well. Once the customer reaches the minimum point value then he is offered gifts and coupons available in bank’s catalogue.
- Certain credit cards offer cashback offer where the spending of the cardholder allows him to get a certain percentage of transaction amount as cash back.
- The most common feature offered these days on almost all the credit cards is fuel surcharge waiver. When you use the credit card at a fuel station then you are waived off for paying the fuel surcharge that is levied on all the petrol stations.
- If you have one or more than one credit card, then you will get discounts and offers related to dining. At selected restaurants you can enjoy discounts, special offers by using the credit card at the time of payment.