What is a Credit Card?

A credit card is a financial instrument that has a pre-loaded balance that the cardholder can use to make transactions and pay for them later. The card issuer will let you pay off the balance fully, interest-free, for up to 50 days from the date of payment. To avoid any fines, the cardholder can pay the minimum amount due (which can be anywhere between 5% to 10% on the total amount owed). The balance, however, will be carried forward to the next month, and interest set by the credit card company will be levied.

Different Types of Credit Cards in India

  • Shopping Credit Cards Shopping credit cards are curated to reward cardholders for their shopping expenses. They offer ample rewards in the form of points or cashback, which can be redeemed for merchandise, travel, or other rewards.
  • Lifestyle Credit Cards - LifeStyle credit cards fulfill your lifestyle wants and suit your various needs. Get reward points for every swipe you make. Avail for shopping discounts and cashback on retail spends.
  • Fuel Credit Cards A Fuel Credit card is being offered by banks to customers in a bid to provide them with maximum benefits while purchasing fuel. Having this card enables those who constantly buy fuel for various purposes to lower their expenditure on fuel. Apart from that, it enables the users of Fuel Credit cards to use it for other benefits with regard to lifestyle.
  • Rewards Credit Cards Rewards credit cards offer you some type of "reward"—typically cash back, points, or travel miles—for every dollar you spend, sometimes up to certain limits. Depending on the card, you can then use your rewards in a variety of ways.
  • Rewards Credit Cards Rewards credit cards offer you some type of "reward"—typically cash back, points, or travel miles—for every dollar you spend, sometimes up to certain limits. Depending on the card, you can then use your rewards in a variety of ways.

Different Types of Credit Cards in India

Shopping

Travel

Lifestyle

Rewards

Fuel

Business Credit Cards

Secured Credit Cards

Cashback

Credit Card Eligibility and Documents

Read on to know the criteria required to apply for our Credit Card.

Credit Card Eligibility

Car loan eligibility is about whether you can get a loan to buy a car. It depends on Credit card eligibility refers to the criteria that an individual must meet in order to qualify for a credit card issued by a financial institution. These criteria can vary between different credit card issuers, but they generally include factors such as:

  • Age: Most credit card issuers require applicants to be a certain age, typically 18 or older. Some may have a higher age requirement.
  • Income : Credit card issuers often have a minimum income requirement to ensure that applicants have the means to repay the credit card debt.
  • Credit Score : A good credit score is important for credit card eligibility. A higher credit score indicates a history of responsible credit behavior and makes you more likely to be approved for a credit card with favorable terms.
  • Residential Status : Depending on the issuer, you might need to provide proof of your current address or residency.

FAQs on Credit Card

A credit score is a 3-digit number (between 300 to 900) calculated by the credit bureau using the credit history of the individual. Banks and NBFCs (Non-Banking Financial Companies) have to share the credit history of their customers with all four credit Bureaus. The credit history of an individual consists of credit amounts, lender names, Loan and credit card limits, Loan EMI and credit card bill payment records, any default on a credit card account, personal details, etc.

Credit scores from two Credit Bureaus would be different. There are four RBI authorized Credit Information Companies(CIC) in India- CRIF High-mark, Experian, Equifax and Transunion (CIBIL). Each Bureau has its own proprietary mechanism to calculate your Credit Score.

Improving your credit score involves maintaining a good payment history, keeping credit card balances low, avoiding opening too many new accounts, and managing your credit responsibility.

Having a good credit history gives you the benefit of creditworthiness which helps you to avail of loans seamlessly. Interest is typically calculated based on the average daily balance of your credit card account and the annual percentage rate (APR) . It's important to understand how interest is calculated to manage your balances effectively.

The main differences between a new car loan and a used car loan are the loan terms, interest rates, and loan amounts. New car loans typically have longer terms, lower interest rates, and higher loan amounts compared to used car loans. Additionally, new cars depreciate more rapidly than used cars, which can affect the loan-to-value ratio. It's important to consider your budget, the total cost of ownership, and how long you plan to keep the car when deciding between a new or used car loan.

Loans

Useful Links

Get In Touch

Phone

+91 80033 28596

Email

info@simplibizfinserv.com