Counted under the category of plastic money, a credit card is an instrument that allows the user to make credit-based purchases. It is issued by a financial company that pays on behalf of the holder. This payment is redeemed by the agency from the user along with the interest. The repayment has to be done on a monthly basis. If the user defaults in paying the credit amount, the issuer charge interest on the outstanding amount. Also, the credit limit is specified to restrain the credit purchase. These Credit card are useful because of the advantages they provide to the user.
Advantages of Using a Credit Card:
The benefits of using a credit card are as follows:
Convenient– Credit Card payment is easy and saves the time of locating the ATMs. The customer doesn’t require cash to buy an expensive commodity. The card user can make a large purchase and pay for it in installments.
Quick Cash– The user can avail cash instantly as and when required.
Perks– The card providers give several incentives and privileges on the card purchase. The user can avail advantages of heavy discounts on shopping and dining, fuel surcharge waiver etc.
Enhance Credit Score– The wise usage of credit card and timely repayment increases the credit score of the user. Which in turn helps in building the loan eligibility.
Track Record– Credit card statements assist in maintaining the record of expenditure made in a month.
Difference Between Credit Card And Debit Card:
Payment done by a debit card is the payment done from the user’s bank account. That is, in the debit card the money is drawn from the customer’s account itself. Whereas, in credit cards, the amount is pulled from the credit line. The card issuer agency pays for the purchase done by the borrower and charges interest on the same. While it eases the purchase but increases the debt on the user.
Which Credit Card To Choose:
There is a wide range of credit cards to select from. The customer must choose the card depending on the requirements. And also refer to the benefits and rewards available on the particular card. The cards are issued by several banks. The credit cards issued by some of the banks are as follows:
Credit Card SBI:
The SBI bank offers different credit cards under the broad categories of:
- Lifestyle Cards – SBI Card Elite and SBI Card Elite Advantages.
- Reward Cards – SBI Platinum and SBI Advantage Platinum Card.
- Shopping Cards – Simply Click SBI Card and Simply Save SBI.
- Travel Cards – Air India SBI Signature Card and Air India SBI Platinum Card.
- Banking Partnership Cards- South Indian Bank SBI Platinum Credit Card and South Indian Bank Simply Save SBI Credit Card.
Credit Card HDFC:
HDFC Bank issues the following credit cards:
Super Premium Credit Cards– Infinia, Regalia, Regalia First and Dinner Club Black
Co-Brand Credit Cards– JetPrivilege HDFC Bank Diners Club, JetPrivilege HDFC Bank World, JetPrivilege HDFC Bank Platinum, JetPrivilege HDFC Bank Titanium and others
Professional Credit Cards– Doctor Superia and Teachers Platinum
Premium Travel Credit Cards– Superia and All Mines CashBack Cards, Premium Women’s Credit Card, HDFC Commercial Credit Cards
Credit Card Axis Bank:
Axis Bank Credit Card are as follows:
- Premium Cards
- My Cards
- Co-Branded Cards
- New Launches Cards
Before selecting a card compare and contrast between various cards offered by the banks and select the one that serves the purpose and yields many rewards.