✅ What is Add on Credit Card?
Add on credit card is an additional credit card issued under the original or primary card. This card can be issued to family members, spouses, parents, and children of 18 years and above. Every credit card has a limited number of supplementary cards that can be issued, and each has the same credit limit. The primary credit cardholder is responsible for paying the overall outstanding due to primary and supplementary cardholders. In case the payments are not made before the due date, the primary cardholder will be liable to pay the interest charged.
✅ Can we get a credit card with a bad credit score?
Yes, you can get a credit card with a bad credit score. However, with the bad credit score, you will be eligible for a basic credit card, which has the least offers and low credit limit or a secured credit card.
✅ How can I get my first credit card?
You can get your first credit card when you have at least 6 months of work experience in the same organization and have a monthly salary above ₹ 15,000. Almost all banks issue a basic credit card, which serves as an entry gate for new to credit individuals.
✅ What is the billing cycle?
The billing cycle is the period between billings in which your bill amount is calculated. The billing cycle may vary and can range from 25-40 days but can also be shorter or longer depending on your credit card. Suppose, your credit card bill generates on the 7th of every month. The bill you get every month will contain all the expenses made in the previous month. Any purchase made on the 8th of a month will be added to the next billing cycle.
✅ What Is the Credit Card Interest Rate?
The credit card interest rate is the charge or price you pay for borrowing the money through your credit card.
✅ What is the grace period?
The grace period is the period between the end date of the billing cycle and your bill due date. In this period, you have to pay all your dues without having to pay any interest or late payment charges.
✅ What is difference between debit card and credit card?
The debit card is issued against your savings account. It helps you use the funds that you have already deposited in your account. Whereas, a credit card gives you instant credit by paying for the things you want to buy.
✅ How long does it take to get approved for a credit card online?
On average, it takes about 1-2 working days for your credit card application to get approved. If you apply for a credit card from online marketplace, you can get instant approval on your application by filling the form.
✅ What are the common types of credit cards?
Some of the common types of credit cards are; cashback cards, online shopping cards, travel cards, lifestyle cards, and premium cards.
✅ What does 'minimum due' mean on a credit card statement?
On a credit card statement, 'minimum due' means the amount which you must pay for that month to avoid any penalty for missing your credit card payment.
✅ What Is Credit Card APR?
APR stands for Annual Percentage Rate. Credit card APR is the annual rate of interest applicable on that card.
✅ How can I avoid paying interest on my credit card?
If you want to avoid paying interest on your credit card, then repay the credit card bill each month. Every credit card has a certain grace period during which no interest is levied, and if you pay off the credit card within this period each time, then no interest will be levied on your purchases. However, if the interest gets levied once then, it will be applicable immediately for your further purchases.
✅ What happens if I only pay the minimum payment on my credit card?
Paying only the minimum amount once in a while will not cost you much other than one month’s extra interest. However, if you will pay the minimum amount regularly, then you will pile up an enormous credit card debt in no time.
✅ What happens if I overpay my credit card balance?
When you overpay to your credit card issuer, your credit card balance goes in negative. It’s not a worse situation to be in. However, you should still try to avoid it. This is because your money will be locked up with a credit card issuer as you can’t withdraw that amount, and it will be earning them interest instead of you.
✅ What are the precautions you need to take to prevent credit card fraud?
You have to follow the following precautions if you want to prevent your credit card from frauds -
- Don't leave personal information such as your date of birth and password etc. lying around at home, in your vehicle or at work.
- Choose a unique PIN and never share it with anyone.
- If you receive a replacement card, you must destroy the old one
- If you don't receive a reissue or replacement by the time your card expires, contact your card issuer.
- Don't share card information over the phone, or email to anyone, not even with the customer care.
- Make sure that the website you are using is secure before transmitting the card information and keep anti-virus and anti-spyware systems up to date.
- Notify the card company when you are going away on a trip. That way, they will monitor the use of your card for any suspicious activity while you are away.
✅ What are the other terms and conditions that you should be aware of while availing a credit card?
We always advise our customers to read the fine print of the loan agreement before signing it. Some of the indicative terms that should be checked are:
- Annual fees in the first year and at the time of renewal, especially if you opted for a discounted or no annual fee card. Get a written commitment that in case of zero annual fees credit cards.
- Late payment charges in case you do not pay the minimum amount due before the due date.
- The interest rate on the outstanding balance of the credit card, in case you do not pay off your card bills.
- Cash advance charges if you need to swipe your card at an ATM.
- Charges for spending more than the prescribed credit limit.
- Requirements of prescribing to add on insurance cover etc.
- Other hidden late payment charges such as revocation of reward points and other benefits.
✅ How does the card issuer determine your credit limit?
The prospective card issuer determines the credit and cash withdrawal limits of the cardholder. These limits are communicated to the customer at the time of card delivery. Some key factors that may influence the decision of the card issuer include the credit score, income, past track record, company category you are working with as well as your existing relationship with the bank.
- Bank Statement
- Identity proof (Passport, PAN Card, Aadhaar Card)
- Age proof (PAN Card, 10th and 12th mark sheet)
- Address proof (Electricity bill, Aadhaar Card, Driving License, Voter id)
- Income Statement (last 3 months salary slip)
- Last year IT returns (for self-employed only)