Now days the trend of credit cards has increased a lot, yet most of the people do not know about credit cards at all. If you do not even know what is a credit card and have come to get information about credit cards , then read the article, and know about credit card , How many types of credit cards are there? What are the advantages and disadvantages of credit card? And how to make a credit card, information has been given.
Know About Credit Card
A credit card is a small plastic card issued by banks, in which a fixed amount is given as a loan. The cardholder can repay this amount after spending it on receipt of the bill.
Credit Card Benefits
Apart from shopping on any website online with credit card, bill payment can be done through swap at hotels, restaurants, petrol pumps etc.
The credit card can be used for recharge and booking of air, rail, cinema tickets, mobile, ditch etc.
Any item can be easily purchased in installments (EMI) using a credit card.
By paying the credit card bill on time, the credit score becomes good, which increases the chances of getting a loan from the bank immediately.
Credit card purchases earn reward points, cashback, which can be used for further purchases.
It helps in budgeting, because every month the credit card bill shows when, how much and from where you have shopped.
Banks charge annual fees on credit cards, but nowadays some banks are providing credit cards without fees.
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How many types of credit cards are there?
Credit cards are of the following types:-
- Travel Credit Card
Travel credit cards, as the name suggests, are used to book tickets and transport related bookings during travel. On booking hotels, restaurants, train tickets, air tickets, bus tickets through this card, great benefits and reward points are obtained.
- Fuel Credit Card
This credit card is used for fuel and petrol, diesel etc. For this, a very good cashback and bonus is available, which can be used for the next fuel purchase. Apart from this, surcharge waiver is also given on this card.
- Rewards Credit Card
This credit card is considered better for most online shoppers. Because online shopping with this type of credit card gives good cashback and reward points. Which can be used in the next purchase.
- Shopping Credit Card
Maximum reward points can be obtained on shopping through this card. Earn multiple reward points rewards on purchases from websites like Amazon, Flipkart, Snapdeal, and more to be used for further purchases.
- Secured Credit Card
This card is made on the basis of fixed deposits in the bank. CIBIL score can be improved with this credit card.
- Entertainment Credit Card
It is beneficial for people who are fond of movies to have such credit cards. Because many types of offers are given on OTT platforms like NetFlix and other OTT platforms.
- Zero Annual Fee Credit Card
This card is made available by the banks to some selected people. There is no charge for cash withdrawal from ATMs through this credit card. Almost all banks give this card to their customers. Due to which it can be used for other things besides shopping.
- Premium Credit Card
This card is specially used by only a few people. Airlines keep getting good offers and reward points on this card for booking various types of tickets. And similar benefits are given in shopping as well.
Documents Required for Making a Credit Card
- Passport size latest photograph
- Identity Proof and Residence Proof
- PAN Card, Salary Slip, Bank Statement
How is a credit card made?
Credit card is made in the following ways:-
- One has to go to the bank branch and collect the credit card application form from the employee.
- In the application form, you will have to fill correct information about yourself along with the card as per your choice.
- Attaching the necessary documents with the application form will have to be submitted to the employee.
- Credit card is generated after the employee inspects the form.
- After the credit card is generated, it is received through post at the home address.
Make online credit card
Nowadays, almost all the banks provide the facility of making online credit cards to their customers. Anyone can easily make a credit card by applying online with the necessary documents.
FAQ
What is the difference between Debit Card and Credit Card?
A debit card is linked to a bank account, whereas a credit card is a loan card.
What should be the Credit Score / CIBIL Score?
Credit score / CIBIL score should be between 300 to 900.
What is the age limit for credit card?
Minimum age for credit card is 18 years.
How much salary should be there for credit card?
The minimum salary for a credit card should be Rs 15,000. Some banks also offer credit cards up to 10000 salary.
What is the credit card limit?
Usually the credit card limit ranges from 10,000 to lakhs of rupees. The maximum limit is determined by looking at the highest income, good credit score, employment status.
In how many days the credit card is made?
As soon as the application is approved by the bank, the credit card is made and sent to the applicant’s address through post. This process takes 07 to 15 days.
What are the disadvantages of credit card?
Some banks for credit cards charge the highest penalty for delay in timely bill payment, apart from charging joining and annual fees.