Blog #Credit Card

A credit card is a plain plastic card that can present you with goods or help you save yourself from a substantial financial debt or crisis in a single swipe. Availing this card is easy, no challenging natural barriers between you and that. They are comfortable and easy for all walks of people. Be a traveler, salesman, laborer, business professional, or magician, and it is unprejudiced and convenient for everybody. Now, it is established that you can avail of a credit card no matter who you are, but can you avail more than one at once? The answer is yes. The banks and Non-Banking Financial Companies (NBFCs) do not have restrictions on the number of credit cards you can avail of if you are eligible to do so. There are no hard and fast rules on how many you can or cannot have. It only depends on your spending and budgeting plans. Bank of India Credit cards provide all the best deals in the market that one shouldn’t definitely miss. 

When is having multiple credits cards best?

The credit utilization ratio is the ratio between the loan amount you availed on the card to the amount spent using the card. The ratio is required to be below 40% and preferably 30%. A low credit utilization ratio is considered a good prospect by the banks and NBFCs, which trusts them and gives you a more preference on availing flute loans or debts. But, when you have a low credit utilization ratio, you can avail yourself of another or multiple other credit cards to improve your mark and maintain your relationship with the lender in a healthy way. It is also good when you require emergency funds from a legitimate financier like a bank or NBFC, and you have maxed out your existing credit card. Rewards and deals are like the most attractive features on a  credit card, so, if you are a regular and stealthy user of those, a second or third credit card gives you deals on top of deals. If you want a backup for your financial situation, then credit cards are the best. Also, with multiple credit cards, you can rely on your savings much for your other payments and bills.

When is having multiple credit cards bad?

When you are in already huge debt, availing an additional credit card to your existing one is not the best of ideas as a credit card though advantageous is still a debt that needs to be paid back. When you are freer and more liberal on your spending, i.e. if you are a high spender, then credit cards will only put you in considerable debt. If you have a low credit score, then having multiple credit cards will only hurt you. If you have an unstable job or an irregular monthly income, having a second or third credit card on top of the current one is terrible as credit cards need regular maintenance and on-time interest payments.

Points to remember before deciding to acquire another credit card

1) Know your requirement: Before deciding on the next plastic money, know if you need it for any purpose. For example, you already have a credit card that needs payments, so think and act before using an additional credit card.

2) Know the deals and offers: There are innumerable credit cards worldwide. But it is essential to know the deals and offers you want and might need in the future. Therefore, check if the new credit card offers better deals than your present one and choose the best one accordingly.

3) Know your CIBIL score: A three-digit number indicates the customer’s loan repayment capacity is a credit score. The score usually varies from 300 to 900 and a good score is above 750. Therefore it is a requirement that you maintain a good score. So before going for another one, know if you can maintain the existing credit score or increase the existing one. If either of the above is on the plate, then go for it.  

Also Read:- Can An Individual Acquire Multiple Credit Cards?    

The credit card has proved to be a very beneficial tool for users as it has changed the game in the market. Credit card users can do payment conveniently and also avail various rewards and cash backs. It has become a very important and essential tool in today’s modern times. One with good credit history and score can avail credit card more easily. The approval of the credit card is fast when one has good credit history maintained. The repayment of the credit card can be done easily through the EMI plan as selected by the user. Various banks and non-banking financing companies allow different EMI plan which can be selected as per the convenience of the user. 

Bank of India credit card can be easily applied through the online website as well as offline. It offers its users additional offer on the credit card. The bank also provides fast approval of the credit card with a very reasonable interest rate. The bank provides several options for the credit card such as Indian Bank Bharat Credit Card, Indian Bank Gold Credit Card, Indian Bank Platinum Credit Card and Indian Bank Business Credit Card. One can get the additional information for applying for a credit card at the online website of the bank. 

A credit card can also be used to improve your credit score. There are various reasons to apply for a credit card because it has various advantages. One of the major advantages is that it can help in increasing the credit score of the users. 

Few steps are mentioned below for increasing your credit score:- 

• Pay the bill by the due date: For a good credit score, one should always clear credit card bill timely. Clearing all the bill is important for increasing your credit score. Convert your credit card dues into EMI for easier payment.
  
  
• Review your credit card report: One should always keep a close check on credit card report like the history of on-time payments, low balances on your credit cards, a mix of different credit card as well as loan accounts, older credit accounts and all other needed information.
  
  
• Avoid multiple credit card applications within a short span of time: Applying for various credit card can pull down your credit score by a few points. Try not to apply for multiple credit card application as it can have a negative impact on your credit history.
  
  
• Avoid taking too much debt: Use your credit card carefully and try not to take much debt on your credit card. As it can have a negative impact on your credit history. Make sure to repay one loan before taking another as it can crash your credit score.
  
  
• Customized your credit limit: Customized your credit card as per your need. This can help you save a lot of money. One should customize a credit card as per the expenses. Using your credit card responsibly will help you save a lot of money and can also increase your credit score and maintain a good credit history.
  
  Conclusion:-
  
  A credit card has become a very important mode of payment in today’s time. Users of credit card are also increasing day by day. The credit card has increased the purchasing power of the people in India. One needs minimal documents like identity proof, address proof, income proof, salary slip, income tax documents for applying for a credit card. One can easily apply for a credit card almost at every bank and non-banking financing companies(NBFCs). Applying for a credit card in today’s time is no big deal as it can be applied online as well as offline according to the user’s convenience. 

Credits cards have several benefits if used correctly and responsibly however, the wrong usage of credit cards can lead the cardholder into a debt trap.

 The wrong usage of a credit card involves - 

1. Paying the only minimum amount due - Banks and financial institutions allow the option to cardholders of only paying the minimum amount. However, this leads to an increase in the balance to be paid, on which a high rate of interest is charged, and makes it difficult for the cardholder to repay the credit card amount.
   
   
2. Utilization rate over 30% - Cardholders are advised to maintain their spending under 30% of the credit limit. If they spend more than 30% every month it could lead them into a debt trap.
   
   
3. Using credit cards for daily use - Using a credit card for daily use can be very harmful as it increases the amount owed by an individual and it can be difficult to repay this amount in the loner amount. Allahabad Bank Credit Card should be only be used in emergencies.
   
   
4. Not collecting rewards - Users get rewards points for using a credit card. These rewards can be used to get cashback, vouchers, or even discounts on various goods and services. These rewards may have an expiry date and the user could lose out on these benefits.
   
   
5. Making cash withdrawals - Making cash withdrawals through credit cards leads to various additional hefty charges every day until the cardholder makes the repayment. This could lead the cardholder into debt.
   
   
6. Making late payments - Making irregular repayments of the due credit card bills could lead to a negative impact on the credit score of the cardholder which would affect their future credit limits as well eligibility to avail of loans.
   
   
7. Not using interest-free periods - Banks and financial institutions provide a grace period of 20-50 days, in which no interest is charged on the borrowed amount. Not repaying the due amount in this period could lead to high-interest rates charged on this due amount.
   
   
8. Using a credit card to pay hospital expenses - Hospital expenses and medical bills can be very expensive, even if one has medical insurance. Using a credit card to pay such large amounts could lead the borrower into debt in the longer run.
   
   
9. Ignoring bill statements - Some individuals do not open their monthly bill statements because they already owe a large amount. However, this could lead to them missing important information such as due dates, changes in credit terms, a higher rate of interest.
   
   
10. Pursuing rewards - Although availing rewards are useful for discounts and cashback, their value is much lesser than the payments one would make using a credit card. Some individuals make more payments using a credit card thinking they will avail themselves more rewards, this is not advisable at all.
    
    
11. Closing credit cards in haste - Credit cards should not be closed in haste as it has a direct negative impact on the cardholder’s credit score. It affects the utilization ratio extended and reduces the age of the accounts held by you.
    
    
12. Applying for multiple credit cards - Applying for multiple credit cards can lead to not only a reduction in credit score but it can also lead to an eventual debt trap as repayment abilities can be affected.
    
    
13. Not knowing terms and conditions - Cardholders may remain ignorant about the terms and conditions associated with their credit card. It contains important information regarding the actions taken by the banks in case of delayed repayments, etc.
    
    
14.  Carrying balance - Many credit card users are under the impression that carrying their due balance into the next billing cycle could help their credit cycle. However, it does the opposite and also leads to a higher rate of interest charged.

      Read More:- Simple Tips To Manage Your Car Loan 

A credit card is a payment card issued by banks and financial institutions. It allows an individual to borrow funds from the bank, which can be used for the purpose of payments and purchases, both online and offline transactions. The bank creates a revolving account and issues a line of credit to the cardholder.

Credit cards can be used for multiple purposes such as payment of bills, shopping expenses, flight tickets, hotel or restaurant reservations, etc. It is usually used for small to medium expenses but can also be used for large expenses based on the card limit. The cardholder has to repay the credit money with a rate of interest charged on it, usually on a monthly basis. Failure in repayment can lead to additional fees and a higher rate of interest on the accrued debt. There are different kinds of credit cards such as standard credit cards, shopping credit, secured credit cards, rewards credit cards, etc. An individual should choose a card that meets their needs.

A credit card has several benefits such as it provides the convenience of not having to carry cash everywhere they go, this also results in safety. Credit cards can also be used to improve your credit score by making timely and regular repayments of the owed amount. This helps in increasing the credit limit and also helps in availing loans in the future as it shows positive repayment abilities. Using a credit card also provides the benefit of additional liquidity which can be very handy in emergencies.

Credit cards can also be used as a budgeting tool because the credit card company provides a detailed statement of the transactions made using the credit card every month, this helps in tracking the expenses and managing your finances. Payment through credit cards also gives the cardholders rewards such as cashback, vouchers, gifts, and discounts on flight tickets, shopping bills, etc. Even the repayment structure of credit card amounts is flexible.

The rate of interest charged on credit cards varies in every bank and financial institution, for example, HDFC Credit Card charges a rate of interest of 3.4% per month. The rate of interest on a credit card is not determined by factors such as repayment capacity but it can be adjusted based on the usage of the card and the relationship of the cardholder with the bank. However, a credit card has an interest-free period that ranges from 20-50 days, it depends on the day the transaction has taken place.

The interest-free period does not apply to cash withdrawals and transactions that have been forwarded to the next billing cycle. The rate of interest on credit cards is only charged when the repayment has not been made on time and in cases of cash withdrawals. If the cardholder makes the repayment on time, they do not have to worry about interest being charged.

Ways to a low-interest rate credit card

Improving credit score- There is a direct connection between your credit score and the credit that is being paid by you. To qualify for better interest rates, one should work to improve their credit score in the longer run. A credit score can be proof of your creditworthiness. This can be done by making timely repayments, maintaining a good debt to income ratio, assessing your credit score from time to time, etc.

Do your research- Before choosing any credit card, it is advisable to do detailed research about the terms and conditions associated with the credit card. A low-interest rate credit may not have rewards and discount benefits but it can help you to save money. Therefore all options should be compared and then a decision should be made.

Maintaining a good relationship- Maintaining a good relationship with the bank can help an individual to get a low-interest credit card. By simply speaking to a bank executive can help an individual to meet their financial requirements.

Zero percent APR- Another way to get a low-interest credit card is to apply for an introductory 0% APR offer, in which no interest is charged on any payment for a said period. It is important to understand the policies completely before choosing any offer.

Also Read:- Know about the credit card offers 

A credit card is a type of payment card where the payment at a point of sale is made from a line of credit instead of the card holder’s bank account. A credit card is issued by a financial institution, usually a bank. The cardholder must then pay back this amount at the end of every billing cycle, which is usually at the end of a month. If the cardholder fails to repay the amount on time, late fees and additional interest fees will be charged on the amount owed. The credit card holder’s credit history and income determine the card’s ‘credit limit’. Vijaya Bank credit card provides individuals with great deals on credit cards according to their needs.

Credit card is a great way of managing money, they have several benefits and can be helpful in the time of financial emergencies-

• Additional Liquidity- A credit card allows the users to have additional liquidity, which can be extremely beneficial in times of an emergency. It allows the users to use a line of credit, so they can make payments even when they are not carrying cash with themselves. It can be beneficial in emergencies such as while paying for hospital bills or when the user faces an obstacle while traveling.
• Convenience- While using a credit card, the cardholder does not have to worry about carrying cash or their checkbook everywhere, instead, they can use a credit card. Credit cards are universally accepted, hence making it convenient for the user in time of emergencies.
• Helps in improving credit score- When a user makes use of credit cards to make a payment and then pays their dues timely, it helps in improving their credit score. This can be beneficial at the time of availing a loan in a financial emergency and it also helps them get a higher credit limit because the limit is determined by the user’s credit score and income. It shows positive repayment capacity.
• Interest-free periods- Credit cards have interest-free periods ranging between 20-60 days, no interest is charged on the credit amount in this period. It is beneficial for users who use credit cards in emergencies and they can pay back the amount within this grace back. It helps them save money on interest and other charges when they might be facing a financial emergency. A credit card can be used to purchase essential as well as non-essential products and services.
• Rewards and discounts- When a user makes a payment through a credit card, it avails them of several rewards and discounts. The user can get discounts on paying bills, flight tickets, etc. They can also get rewards such as vouchers and gifts. Credit card programs also give cash back rewards on prompt repayment of the amount owed.
• Insurance- Most credit cards come with insurances that many users may not be aware of. The user can insure things such as travel insurance, product insurance, and rental car insurance when they make payments through a credit card. This can be useful in emergencies.
• Safety- Carrying a credit card is safer than carrying large amounts of cash everywhere. Large amounts of payments can be made through credit cards also. They are also safer than debit cards because in case of fraud, in a debit card the amount is withdrawn from the user’s bank account and it may take time for the bank to reverse these transactions. While on a credit card, the user can just notify the bank and not pay the transaction amount, hence their money is not lost.
• Expenses records- A credit card maintains a record of each payment made by the user through the card, and the details are shown in the credit card statement. This can be used by the user to keep track of their payments and purchases, which can be useful for monthly budgeting and tax purposes.
• Repayment flexibility- The user has the option to repay their credit card bills through equated monthly installments (EMI) which allows them to know the required amount that needs to be paid every month. Banks also offer the option to the users of paying the minimum dues which would allow them to continue their line of credit.

Credit cards are very helpful in emergencies as it has several benefits but the user also needs to be responsible in making the repayments on time otherwise additional charges and high rate of interest is charged on the amount due.

Also read this: Way to avail Credit card 

We live in a time where Most credit cardholders consider paying bills digitally, either through mobile/internet banking, IMPS, NEFT, RTGS, by UPI, even by debit card and platforms like CRED. Today, most banks have stepped up the digital ramp to provide online services to their customers, be it applying for credit cards online, or to make monthly payments after you get one.

 Can we make credit card payments via IMPS?
IMPS (Immediate Payment Service) is a legal payment system that allows instant interbank funds in India. What makes IMPS even better is that, unlike traditional transferring options, it permits committing transactions at any time. Be it a bank holiday. The NPCI has regulated valid for every legal transaction, which makes it the most common payment gateway for credit card bill payment. The reason why it is a widely used payment option is that it doesn’t charge transaction fees and assures strong security.

Is NEFT an option for bills payment?
NEFT (National Electronic Funds Transfer) is definitely one of the most frequent payment options through which people consider paying their bills. As the name suggests, NEFT has a net that covers the entire country, so automatically, it promotes inter-banking transactions as well.The NEFT payment gateway is centred by the RBI (Reserve Bank of India) and is entrusted with nearly all sorts of legal transactions and payments.

Can the payments be made by mobile wallets?
The service of credit card bill payment is something offered by mobile wallets and payment systems. These platforms have this facility integrated within their design. Hence a customer is not expected to separately register or create a new account somewhere if they have one of such wallets/payment systems (like PhonePe, CRED, Paytm, Mobikwik).It is also one of the easiest payment options, as it directly links your wallet to your bank account, hence credits/debits the balances accordingly.

Can the payment be made by drawing a cheque or a demand draft?
Yes, it is absolutely possible to make credit card bills payment via cheque or DD. Paying the amount through cheque makes it easy for the customer to transact offline. The cheque/DD must be dropped in the bank branch of the concerned account and must be written in favour of the credit card account.

Here are a few dos to perform before drawing a cheque for your HSBC Bank Credit Card bill payment-

• It is significant for the cheque to be in favour of the credit card account.
• The cheque should mandatorily contain the credit card number.
• Keep the due date of the credit card bill payment in your mind while filling the cheque, as it may take more than three days and sometimes even 12 days (in case of outstation cheques) to be processed.

Can the credit card payment be made by depositing cash in the bank branch?
Yes, it is a fair matter to make the credit card payment physically by cash. To make the payment, you have to visit the bank which issued the credit card to you. On reaching the bank, the deposit slip must be precisely filled with relevant details.Make sure to recheck the bill amount before submitting, as it may lead to cheating or payment discrepancy.Paying physically via cash may take less than 24 hours, so it should only be considered as an option if the credit card payment timeline is 24 hours away.

What happens if one does not pay credit card bills?
In India, not paying credit card bills can lead to severe repercussions. On skipping one or two payments, banks usually charge late fees, penalty APR resulting in damaging your credit score. If it is the third time one has not paid the bill, the credit card account can be closed, with even more credit score decline and late fees. The fourth time may substantially damage the credit score, and a lawsuit can be filed.

Read More:- How to transfer a Car Loan to another lender? 

There has been an absurd transaction that has caused many cases of frauds. Before doing any transaction, one should be careful. One should always fortify security and not share the pin with anyone. J & K Bank Credit Cards have devise guidelines to identify a breach of Credit cards transactions.

While using your card for any transaction, check that no one is peering over your shoulder to memories the card for your security pin details. By skimming, many hackers copy information from the internet, making payments from unreliable sites. The skimming is done from the magnetic strip where information is embedded and clone in a counterfeit card. One should not only e keep the computer protected against fraud but also from virus and malware.

The creditor should always ensure that his or her his or her card. The credit card bill should be thoroughly checked for every. An email or SMS alert is sent to the creditor after the card is being used for any purchase. You receive an alert, but you haven't made any purchase, you should directly contact your bank. In case of theft, one should block a credit card. Banks offer 24 hour zero level ATI for any transaction once you have blocked your credit card. The bank conducts an investigation on the fraudulent transaction within a time span of 45 to 120 days.

Frauds in a physical transaction are easy to investigate and crack because of the payments slips or bills. The forgery can be detected with the help of signatures or handwriting on the payment bills. The creditor’s precaution is to memories the CVV number and stretch it out from the card or avoid signing on the strip present on the back of the card.

By scrutinizing all financial documents, one should report them to the organization. One should always appear about the ATM slips and cancel checks our bills before throwing them away. One should always remove the data from digital gadgets on mobile phones before disposing of it.

Being digital savvy is very important while doing online transactions. Always use virtual keyboards to enter your password and not store your password on any unreliable site. Any URL which contains an uppercase letter is a sign of a fake site and should be directly reported. The sites which display an IP address on a numerical address are hazardous fake sites. Every sides review should be check before making any purchase or doing a transaction.

Day by day, the number of online frauds cases having to increase. A creditor must pay off full safety towards his payments and check the reliability of the source. The fraud transactions should be directly reported to the cybercrime branch. Phishing is also prevalent nowadays, where a lot of people will lure you into the trap of sharing your OTP or card details. It is generally advised that you never share your card details, CVV number or OTP with anyone. Whenever you received a call that tells you that your credit card has expired or your eligible for a lottery, this shouldn't be believed and avoid enclosing details to anyone. A bank representative never calls their customers for this purpose, nor does charge any fees via phone.

An individual should enroll in Credit monitoring or identity theft protection services are the services available pr checking the credit card reports and helps in analyzing your expenses. When credit checks are performed, an individual is notified by a text or an email to detect suspicious activity and take immediate action against it.

Card-not-present theft is the unauthorized use of a credit card account that does not necessitate the actual presence of the card. The thief simply has to confirm your identity, account number, and the card's security code to utilize this approach to make online transactions. In recent years, data breaches at shops and other businesses have exposed the personal information of millions of customers.

Some things to keep in mind while making Credit Card Payments:

When you're out and about, keep a close eye on your wallet or handbag, and never leave Credit Cards unguarded.

Keep credit cards you don't use at home rather than bringing them with you, and only carry your Social Security card if necessary.

If you're asked for your Credit Card number, Social Security number, or other sensitive information over the phone, be sure you're speaking with a real person.

While doing online shopping, check the reliability of the website and once should always ensure that the site is secured or not.

One of the eligibility criteria for obtaining a Credit Card is a CIBIL score. Apart from other financial assets such as credit cards, many banks, and other financial institutions provide loans to individuals. CIBIL in India's first and most trusted credit bureau. Most banks and other financial institutions rely on its scoring methodology because of its accuracy rating.

How to get good CIBIL results with a credit card? 

Have you ever wondered that a CIBIL Score can be increased with a credit card. There are several basic ways to do this. Issue your Credit Card, check your credit report, and pay off debts as quickly as possible.

 
Pay bills on time - The easiest way to get a good CIBIL score is always to pay your credit card bill on time. Your bills are on time, and your payment history has been strengthened. Every credit card has an expiration date in which you must pay the full amount owed or the minimum amount owed (5% of the total commission). Whenever you want to get a higher CIBIL score, always try to repay the due amount in full.

 
Control your credit card spending - A credit card in your pocket can sometimes be profitable, but don't use a credit card that exceeds your ability to pay. Credit card spending is like playing a gamble; you have to be very precise while using a Credit Card. If you spend within the scope of income and expenditure, you can pay the loan fees on time and get a good CIBIL score. You may not be able to pay for your credit card bill when the expenditure is high.

 
The cost is within your credit limit - Your credit card has a certain limit imposed on it by lending Institutions or banks. One of the best ways to get a good CIBIL score is to always spend within 30% of the total limit. People who are used to exceeding the card limit can be regarded as borrowers who lack funds. If it lasts for a long time, this impression will significantly reduce your CIBIL score. Therefore, always try to keep your credit card spending at a certain level so you can pay on time.

 
Check your credit report - Sometimes, errors in your credit report can also negatively affect your CIBIL score. To avoid this, keep checking your credit report carefully to see if there are any errors. When it comes to personal data or transactions, if you find any errors, try to fix them as soon as possible.

 
Set payment reminders - You can also set payment reminders or automatic billing services for your credit card. You will never lose your credit card payment with payment reminders. The automatic payment feature allows you to set a fixed amount to be deducted from the account associated with the credit card when the invoice is generated.

 
Eliminate debt as quickly as possible - It is important that you pay off your credit card debt as soon as possible. To ensure this, you always have to pay the amount you owe in full. If you pay the minimum monthly amount, you may fall into a debt trap due to the high-interest rate of the revolving loan. The interest rate can be between 30% and 45% per year. Therefore, only spend the money you need and not spend on unnecessary expenses.

 
Overall, a CIBIL Score dramatically impacts the chances of your Credit Card application getting and approved and repaying the credit card dues. Dena Bank Credit Card offers lucrative offers and instant discount options for its customers. Credit Cards can now be availed by digital mode, and you no longer need to visit the banks or lending institutions to avail of one. The required documents and CIBIL report can be sent online through the official website of Dena Bank or mobile application. The update on your application can be tracked through this app or Dena Bank’s webpage from your phone or laptop.

Also Read:- Car loan- Application process 

The credit card is a miniature loan that provides you with a fixed credit balance for a set period of time and allows you to use the amount for a variety of reasons while using the card. You must pay your credit card balance on or before the due date. There is no penalty on your bills until you pay your bill on time. This feature makes it less expensive than obtaining a loan. 

However, if you fail to pay by the due date or pay just the full amount outstanding, the credit card issuer will charge you the interest rate or penalize you. To qualify for a credit card, one must first understand the eligibility requirements. A  flurry of credit card applicants arrives at banks on a daily basis because of lucrative discounts, loyalty points, cashback, surcharge waivers, and even more.

Credit Card Eligibility Calculator -

One’s eligibility for using a Credit Card depends on factors such as income, credibility/credit limit, and age. Among the factors mentioned, income plays a vital role in determining a person’s credibility and plays an important role in determining the credit limit to be sanctioned. 

There are several factors you can check which may affect your eligibility to use a credit card -

Age :

Applicant’s age is an important factor in deciding your eligibility. The legal minimum age must be at least 18 years old. If you are under the age of 21 and want to take the card yourself, you must have a stable income or a second co-signer who can pay all the expenses of the card account. The first factor to consider when determining eligibility is age. 

Specify the credit limit :

This limit is set by a credit card company. To get a credit card, you need to have a stable source of income. In addition, the income standards of the different cards you apply for may be different. Some cards require a person to earn a certain amount of salary. If the card is held by a minor, the co-signer must have a permanent income. This enables you to pay the bill for the purchased goods. Even if you choose to have a secured credit card, obtaining a regular and stable income is crucial as eligibility for the program. 

You must have proof of fixed deposit of a certain value which you might have to show as a guarantee. You can more easily obtain credit card authorization from the lender. The credit report is the basis for obtaining the card for yourself. This is usually based on factors such as the number of cards you currently have, total cards you owe, any previous loans, payment history, outstanding payments, bankruptcy expenses, etc.

Credit score :

To get a credit card with bad or no credit, you need to use a secured credit card. The credit card company will use the money as collateral before providing you with the card and use the money if the cardholder fails to make repayments of dues.

Reduce past debt :

Any past outstanding debt can reduce your chances of obtaining a credit card. As you know, a credit card is a type of loan that a company takes and expects the repayment in the specified period. Past debts can become an obstacle to pay for newly withdrawn credit cards. This becomes a risk factor for lenders because borrowers may have difficulty returning the money and become debtors. When the amount of debt is high, the chance of owning your credit card decreases.

Co-signature :

If you are too young to qualify for a loan or have no income to pay your bills, you need to co-sign. When they receive a credit card to repay bad debts, they will also ask for a co-signer. If you do not pay, he/she(co-signer) will be responsible for paying your Credit card bill. You are also responsible for paying the balance amount. Allahabad Bank's Credit Card approval rate is the fastest in comparison to other lenders or other banks.

Who knew a plastic-digital card could do so much. The Indian ecosystem is full of companies and organizations that offer credit cards with various rewards. But you should know which reward would work in your favour. So, let us go through 9 points about the credit card offers:

1. How to earn:

The easiest way to get rewarded by the credit card is to use the credit cards as much as possible, like through shopping, electronic goods, travel booking, buying golds etc. Such purchases increase the chances of getting reward points which can be very useful in the future. 

2. Expiry of points:

Before redeeming the credit card points, it is essential to know when your card points expire at which specific date. The rewards points are always time-limited, and you cannot use them anytime. They come with a particular date, and if you do not use them within that period, you lose those points. There are premium cards whose benefits and reward points do not expire, but it's essential to know whether they are available for life purposes.

3. Choose carefully:

All the credit cards look profitable, and the person needs to know what kinds of lifestyle would fit their needs and lifestyle. For example, it is useless to get reward points on fueling while he has no work related to fuel. 

4. Don't get too many

Having multiple reward cards is a good option and then use them as per your requirements to increase the rewards across their purchases. Moreover, this strategy is dangerous because in such a case, bills may pile up, and at the same time, it would become tough for you to manage as each card has its own set of policies and norms that one should remember and follow while earning or redeeming rewards. 

5. Fly for free:

The most normal rewards you get from these credit cards are the option to redeem loyalty points for flying miles. These miles usually get credited to your account every time you spend through your card. You can accumulate miles to purchase airline tickets for your favourite destination. When you use these cards, you should use the ones that give the highest miles if you plan on travelling in the future. 

6. Use virtual cards:

In recent times, one can get an online credit card to buy goods from their favourable shopping websites instantly. This virtual card permits people to get instant credit cards as their favourite rewards. These favourite rewards can be available immediately for redemption on high-value purchases. 

7. Transfer unused points:

If you have points that you have not used for a while now, you can easily choose to transfer them to a rewards account linked with another card that you use. The credit card company helps in transferring the reward points from your credit card online.

8. Convert to cash:

A handful of credit cards have begun to offer the conversion of loyalty points to real cash at a determined price. Many of those who are concerned about their bills can use this service to reduce their costs. Others will use their points to obtain gift cards for major shopping portals and use their rewards to cover a portion of their expenses.

9. Look at charges:

Although newer credit cards have straightforward redemption policies, some older credit cards have penalties or fees for redeeming reward points in various ways. If you purchase goods through the reward shop, for example, you will be asked to pay a shipping fee. Before rushing to reclaim points, it's a good idea to be aware of such costs.

There are several credit card reward deals. It will help if you choose deals that are designed for specific needs. You may apply for Union Bank of India credit cards online to take advantage of a unique reward programme that will enhance your shopping experience.

Who are low-income people?

Low income people are people who are nearly at the risk of poverty and struggling to make their ends meet. They work odd and menial jobs to make sure they can run the family. Their income is mostly less than 60% of the equivalent median money income of all other households.

What is the purpose of getting credit cards?

Cash back: If you choose the right credit card, and pay the bills regularly. You can earn from 1% to 5% back on the purchases that you do.

To build your credit rating: If you have spoilt your credit rating in the past which might have been because of not managing your borrowing properly, or a low score because you have never used a credit card in your life. However, you can continue to build your credit scores using a credit card- you need to be extremely careful in the paying of the bills. You need to pay the bills completely every month and not in instalments.

Reward points: Most credit card companies provide reward points for any and all purchases that you make with your credit card. You can then use these points to purchase gifts for your loved ones and for yourself.

Investment rewards: There are some cards that are existent in the market that offer higher rates of cash back; in exchange for that you need to deposit your cash bank directly into another account.

Equated monthly installments: If you are buying or making a big purchase, using your credit card you can easily convert it to affordable monthly installments. Banks usually charge interest for conversion to EMIs.

Security: Owning a Credit Card gives you a sense of security. When your financial situation gets tight or unmanageable situations occur. Having a credit card might help to put food on the table or keep the lights on in your house. By not over-using or over-exhausting your card to its limit, you would have some money saved up or available in the case of an unavoidable emergency, such as the unexpected car repair or any other medical emergency. These credit cards also come along with the feature of fraud protection, which would cover for your losses if you have been the victim of a scam, and permits you to create a special one-time card number, to keep your actual credit card information safe.

Why are credit cards needed for low income people?

Even if they are people who are struggling to make their ends meet. Having a credit card would work to their benefits, because they wouldn’t do lavish purchases and would have money saved up which can be used for other expenses, in case of emergency or children’s education. One such bank that offers credit cards for people of low income is the United Bank of India with their United Bank of India credit cards.

Conclusion: A credit card has a lot of advantages and seems to be more affordable now. People who are earning a low income when compared to others, can invest in getting a credit card because it offers a lot more benefits for them, which would be more helpful than not. The advantages and the purpose of the credit card is mentioned above.

Read More:- Credit Card For More Convenience 

PAYMENT METHODS ONLINE STEP-BY-STEP INSTRUCTIONS

When using a credit card as a payment form, payments are usually collected in a matter of seconds. Nevertheless, a lot is running on the scenes.

Important Tips to Get Before Making Online Payments:

• Review your credit card balance—Check your online statement before making any payments on your credit card bill. Check if the prices on the card are valid, and write down the exact amount you would pay on the due date.
  
  
• When paying your credit card bills, always review the processing period and see how long it will take for your charge to be processed. Payments made via the bank's internet banking service usually are processed the next day. As a result, this option will be used to make purchases on time without risking a charge. Other online approaches can take anywhere from one to five days to complete.
  
  
• Provide reliable information-Make sure your credit card number, bank account number, and other data are correct. Take the time to double-check the details you've provided to make the appropriate payment.
  
  
• It saves you time and money by allowing you to pay your credit card bill online. It saves you a lot of time that you might have wasted going to the bank or ATM.
  
  
• Convenience and comfort: You can make online purchases from the convenience of your own home or workplace. You can also make purchases from everywhere in the world using your smartphone or device.
  
  
• Safe and secure: Online banking is safe and secure because you use your IPIN or other methods to verify your identity. Banks have security features in place to protect your privacy and identification. It reduces the possibility of money or documents being lost in the mail or elsewhere.
  
  
• Simple records: When you use online banking, everything is automatically registered and ready for analysis if you need it. All of the data is automatically organized and accessible in one location. It's much easier to budget and file taxes when you have this information.
  
  
• Digital transfers are environmentally sustainable because they eliminate the use of paper, cheques, envelopes, stamps, and receipts. When you collect all of your accounts and payments online, it also reduces clutter.

THE GUEST BEGINS THE ONLINE PAYMENT PROCESS

The guest uses the website, a payment app, or another payment mechanism. The guest offers identity, credit card information, and address after choosing a credit card as the payment type and then submitting payment. The backend mechanism has begun.

PAYMENT PROCESSOR & CREDIT CARD NETWORKS 

By routing payment data via credit card networks, the payment processor (merchant acquirer) validates payment information (Visa, MasterCard, American Express). After that, the networks give them to the card's issuing bank to be checked.

THE BANK THAT ISSUES THE CREDIT CARD

According to the card status — working, lost, or within credit cap — the guest's card-issuing bank accepts or refuses the payment transaction for the inn or bed and breakfast charges. The Karnataka bank credit cards are one of the best banks that will provide you with the credit card and the best payments options, then send the information to the credit card networks. If the purchase is accepted, the card-issuing bank charges the visitor. It sends the funds to the credit card networks minus exchange fees to offset the assumed credit liability and incentives provided to the client for using the card as a payment form.

CREDIT CARD NETWORKS AND PAYMENT PROCESSOR 

The payment processor receives notification from the credit card networks about whether the purchase was accepted or rejected, and the funds are transferred minus a charge. If the guest pays for inn or bed and breakfast charges with a closed-loop Discover Card or Diners Club, Discover Bank validates and relays the payment approved/denied status to the payment processor through its Network. The payment processor then notifies, and if accepted, the funds are sent less merchant acquirer service charges.