A Credit Card is one among the foremost helpful and powerful, nonetheless dangerous, payment system. Credit Cards, or plastic cash as they’re known as currently, square measure quick turning into Associate in Nursing integral a part of cash management and banks square measure wooing customers with irresistible offers like reward points, privilege memberships, etc on credit card usage. If used with wisdom, Credit Cards can be good financial assistance, however, they end up bringing financial ruin if not used properly.
If you are planning to get a Credit Card, the first thing you should know is which are the credit card issuing banks in India. There are several banks that provide credit cards in India. Given below could be a list of Credit card service providing banks beside the assorted varieties of Credit Cards they provide
- SBI Bank
- Axis Bank
- HDFC Bank
- ICICI Bank
- Panjab National Bank
- Canara bank
- Bank Of Baroda
- Kotak Mahindra Bank
- Syndicate Bank
- Vijaya Bank
And many more banks who provide you their credit card.
How does credit card work?
You can think of a credit card as a short-term loan from a credit card issuer.
Unlike an open-end credit, which takes money from your checking account, a credit card uses the issuer’s money and then bills you later.
Some Credit Card Terminology
When you apply for a credit card from any bank you should know this terminology and really know how a credit card works and what is the main difference between a Debit Card and a Credit card.so let’s talk one by one.
The amount of cash you’ll pay on your card at just once, or the size of your ongoing loan. It’s determined by the credit card issuer. The better your credit and also the higher your financial gain, the higher your credit limit may be.
Credit card Balance
How much you’ve spent on your card and haven’t paid back (also called Credit debt). If you’ve made 15,000INR in purchases — and haven’t yet paid it off — your credit card balance will be 15,000INR.
Available credit Balance
How much you’ll pay before you hit your credit limit. If your credit limit is 50,000INR, and you have a balance of 20,000INR, your available credit is 30,000INR. If you make a 10,000INR payment, it’ll go back up to 40,000INR.
So, this is the fundamental information about Credit card and its useful information.