In India, credit cards are soon becoming one of the most preferred modes of transactions. Between January 2017 and 2018, almost 7.39 million new cards were issued to customers. People prefer credit cards over other types of cashless mediums because of the convenience they offer. However, credit cards are debt products and everytime you swipe it, you basically take a short-term loan from the credit card company. This means, you’ll have to pay back the availed loan before the due date in order to avoid penalty and interest charges. Apart from that, if you fail to do so, your credit score is likely to go down affecting your credit eligibility for a very long time.
So, if you are using a credit card, it’s better if you pay the debts on time. Talking about how, you can use NEFT for credit card payment.
What is NEFT?
NEFT refers to National Electronic Funds Transfer System and has been in existence for a very long time. In fact, it is one of the most common methods of credit card bill
The first thing that comes to your mind when you're faced with financial difficulties is a personal loan as it offers funding without collateral. But you can also opt for a loan against credit card, where a portion of your card limit is offered as a loan. Here are some differences between both the loans which will help you to make sound decisions while opting for a loan.
Ease of documentation
While you have to furnish the required documents from scratch while applying for a personal loan; you need not do the same with credit card loans as they are pre-approved loans. This accelerates the application process.
Securities and eligibility
Both the loans are unsecured. But as opposed to personal loans; a loan against credit card is tougher to obtain as you have to prove your capabilities with a good CIBIL score and stable income.
Interest rate
Personal loans have a higher interest rate than credit card loans.
Loan amount and end use
You can get personal loans up to Rs.25 lakh. But the sanctioned
Applying for a first credit card is very exciting as it gives one a sense of liberation and a financial solution which can cater to a lot of our needs. This is why an increasing number of individuals these days are now applying for a credit card despite having an already existing debit card. A big reason behind this trend is also because of the fact that a credit card offers features and benefits which a debit card is unable to.
If you are applying for a credit card for the first time, then there are a few important aspects which you must remember. Mentioned below are a few of them -
Stable Income Source
A stable source of income is one of the biggest parameters which a lenders checks in an applicant when considering the credit card application. This is because it is used to ascertain whether or not you will be able to repay back the amount which will be spent. For the same reason, businessmen and salaried individuals have different eligibility criteria for the same credit cards.
Don’t
Today is the age of plastic money. So, everyone should know about the usage of credit card which is also a plastic money. Let’s see here how to avail credit card and use it wisely.
A Credit Card is a plastic currency that comes with a credit limit up to which you can utilise the same. It is nothing but a loan which comes with certain charges and monthly repayments with interest. A credit card helps you in meeting short term financial requirements which need not have to wait till you get your salary. It is a cushion for you as in case of emergency you need not go tapping the door after the door for the money and can repay it once you get the money. Now-a-days, it comes with EMIs so that a fixed amount could be repaid every month.
You can even withdraw cash from your credit card from the ATM. But before credit card apply online, one must thoroughly know about what are all the charges involved in it.
Joining fees which is a one-time fee
Annual fees which is charged annually for the
Credit card lets the user buy-first-pay-later which makes it an increasingly popular option for the millenials in the workforce. It allows them to pay for their needs even when they do not have enough liquid cash in their hands.
But before you apply for the credit card here are important things you must keep in mind to avail all of its benefits -
Avoid the debt trap - when you make transactions using your credit card make sure to pay them off regularly with the regular payments. Simply, avoiding to pay will pile up the payments and turn them to a debt which will lead to monthly interest rate of around 3% to 4% on the outstanding of the card.
Do not overspend - once in a while, we all love to indulge and there is no other financing option better than a credit card which will help us do it. However, this must not a habit. As with every transactions made, as a user, you are also supposed to pay it off. Besides, if you doing it just to earn reward points and discounts the strategy might
Having your credit card compromised is a highly unwanted situation. It not only stresses you out mentally but also leaves your finances vulnerable at the hands of culprits. To avoid a sticky situation such as this you must know of some smart tips to save yourself and your card.
Personalize the credit card - as soon as you receive your credit card make sure to sign the back of your card. This ensures that the card is yours and no one else is able to use it unless you want them to such as your family member.
Fraud alert - you can set up ‘initial’ and ‘extended’ fraud alert on your RBL credit card. With this, the lender will inform you via call, email or SMS of any unusual activity. The alert helps you identify fraud either occurring or has happened recently and pushes you to block the card to save you from the same.
Save details carefully - the information of your credit card especially its pin number is an important tool to authenticate transactions. Hence, at all times make sure to
One of the ways to settle a huge outstanding on your credit card is to opt for a balance transfer. It is a recommended option as it not only lowers your EMI but saves you from paying the additional rate on the card, as well. But, before getting started keep these important pointers in mind -
In order to be eligible for a credit card balance transfer you must have a good or an excellent credit. Where, recency and frequency of payments is take into consideration. And especially the recent missed dues can negatively affect your chances of being approved for a transfer. Even for a 0% introductory rate or approval for enough credit to have your balance transferred.
Additionally, most credit card balance transfers charge a fee and may even levy an annual fee on the credit card. Such costs and the time taken to clear off the outstanding dues on your credit card payment may negate any interest savings you may be eligible for with the balance transfer.
Most importantly as you are required to
Having your credit card application rejected can be rather disappointing. There may be times when you are not sure of the exact reason of the same. Hence, mentioned below are reasons which will help you re-apply for a rejected credit card application.
Be clear of the exact eligibility criteria set by the lender. This is crucial so you can apply accordingly and have the relevant paperwork prepared to improve the chances of your application getting accepted.
While, filing for your credit card application cross-check information you provide such as your personal and financial details. Any error while filing the application can lead to rejection of your credit card application.
Have all documents such as your ID proofs etc. ready while applying for the card. There may be times when you are needed to provide additional supporting documents. So, keep them with you to get the credit card of your choice.
Avoid applying for too many credit cards at the same time. As it gives the impression that
The market today is full of several credit cards from various lenders. However, it is suggested to adopt for card only after proper research and then choose the one which offers more benefits. Moreover, it is also wise to opt for a card which provides unmatched security to its users so as to safeguard them from any kind of fraud especially online. Having said that, let’s know of ways to protect your credit card from online fraud -
Make sure the online channels/ portals/ e-sites you make transactions through are reliable and secure.
Install an antivirus software in your devices to eliminate chances of credit card information getting leaked.
Apply for the credit card which offers unmatched security such as ‘In-hand security’ to experience more control over your card and ‘Zero-fraud liability cover’ to avoid threats of cybercrime.
Get your credit card transactions linked to your phone. So, anytime a transaction is made an OTP will be sent to your phone to authenticate the transaction and
