A credit card is a great way to control your financial habits, but a credit card has details that everyone needs to be aware of before availing of such a card. This article has gathered some of the information common to all credit cards and will help you find the best credit card in India.
What is a Credit Card?
In simple words, a credit card is a tool which permits everybody to purchase services and products. It may sound a lot like what a debit card does, but many things set a credit card apart. For instance, when you purchase something with a credit card, you borrow money from the bank or financial institution that issued you the card. But within a specified date, you would have to return the funds; if you cannot, you are charged a certain interest. We made easy access to the money for you because we are Emirates Loan in Dubai UAE.
Things to Know Before Owning a Credit Card
Before getting a credit card, there are some points that you should be aware of. And following are those points –
- Variety of credit cards
In India, there are several credit cards available, and among them are some of the Dish Tv Installaton Dubai Generally, these cards have their categories of the rewards they provide. Some of the cards you can get are travel credit cards, lifestyle credit cards, cashback credit cards, shopping credit cards, business credit cards, and co-branded credit cards.
Depending on the credit card you choose, your offers, discounts, and rewards are established and curated for your needs.
- Charges of a credit card
All credit cards have certain charges attached to them. The most significant change is related to the rate of interest liable on the unpaid outstanding balance and cash withdrawals. The other fees related to credit cards are cash advance fees, balance transfer fees, foreign transaction fees, over-limit fees, etc. To make an educated decision related to your credit card, you must learn about the amount of the charges.
- Credit card affecting credit score
The biggest impact of having a credit card is affecting your credit score. Your credit score matters when you want a loan from a financial institution. Some metrics drive your credit score, such as your timeliness in paying your dues, spending habits, etc. Your high credit score would increase your creditworthiness, and a low credit score would affect your ability to get a loan.
Features and benefits of a credit card
Largely, several benefits come with having a credit card, but it also depends on whose credit card you avail. For the benefits and features, there is a rise among people to get the best credit card in India. As a result, knowing what benefits and features come with a credit card is necessary.
- Credit card loan
The biggest advantage of having a credit card is getting personal loans instantly whenever you need them, but only up to a specific credit card limit.
- Cashbacks, discounts, and rewards
Banks’ credit cards come with several forms of cashback and discounts when using the card to make purchases.
- Conversion of large purchases into EMIs
A credit card provides the advantage of paying for any big purchase made in small instalments over a certain period.
- Easy tracking of expenses
You are sent an alert whenever you use your credit card for purchases. With that, you also receive monthly statements containing all your expenditure related to the card. It makes the task of tracking your expenses simple.
One of the best payment methods that you can use in today’s time is a credit card. It provides you with the advantage of making the purchases of your choice and making payments later in instalments. Further, you get several offers and rewards that are unique to a credit card app and would lead to an overall improvement in your spending habits.