Q. What is credit card?

A. The credit card is the payment card in which cardholder can purchase goods & services on credit issued by banks or card issuer. The issuer (banks and institutions) pay for cardholder on the basic of promises that cardholder will payback the amount plus other charges.

Q. How credit card is different from debit card?
Debit card is the card respective to your bank account. Whatever the amount is in your saving account, we can withdraw that much amount only from ATMs, online transactions or swiping machines.
In credit card, the cardholder spends or withdraw cash is spent by the bank issuer for that point of time but after that cardholder has to pay it back according to his bilcycle.

Q. How does EMV & PIN work for cards?
EMV stands for Europay, Mastercard and Visa, its a global standard installed with chip and PIN technology. With the help of it additional security level is introduces in point of transactions to prevent frauds.

Q. What is CVV? Why not to share it to anyone else?
CVV stands for Card Verification Value. It is mentioned at the back of the credit cardd on the signature panel. Its a 3 digit number used for card verification. Much more important in terms of security so never share it with anyone.

Q. What is the eligibility  criteria for applying credit card?
Eligibility for credit cards differ from one issuer to another. General requirements are:
1. Age ust be greater than 18.
2. Salaried proof or ITR required.
3. PAN & Aadhar card for proof.
4. Every issuer have different minimum income requirement criterias. (INR 20k & above).
5. A saving account

Q. What are Add-on cards?
Its an additional feature of credit card where you can share your limit with your family members by getting add-on card (a seperate card).

Q. What if I lose or stolen card?
In this situation, the priority must be dial up the card issuer's customer care number and block the card and ask them issue new relacement card. It wil prevent you from unauthorised transactions.

Q. What is reward points? How to use it?
When we spend from our credit card, we earn reward points that can be exchanged with a range of gifts and discount coupons from the merchant site. the reward point rates differ from card issuers its generally like INR 100 = 1 or 2 Reward point (vary with different banks).

Q. What are the key charges applied on credit cards?

There are several charges applied by card issuer, here are the general charges:
1. Joining fee: Fees paid at point of sale of credit card.
2. Annual fee: Annual fees deducted for using credit card.
3. Late payment charges: its a charge that to be paid if the payment is not made in time as per bill cycle.
4. Cash Withdrawal: a high interest is charged when we withdraw cash from credit card.
5. Service Tax: Tax is to be paid over the expense we made on credit card inclusive of interest, fees and other charges.
6. Over Limit fee: Credit card comes with a credit limit, if we use above to the credit limit, the cardholder has to pay the over limit charges.
7. Finance Charges: These charges are charged when we pay less than the statement amount. Like I holds a due amount of 10k and I make payment of 2k on the due date, then the finance charges will be applicable to rest of the remaining amount i.e. 8k. It will be applicable untill I make full payment.

Q. Can I increase my limit?
Yes its possible to incrase th limit of the credit card, it depends on several aspects like, your payment and usage history, your CIBIL, your income.

Q. What is Billing date/cycle?
Billing date are the date on which my new monthly bill is to be generated by the issuer (bank).

Q. What is mimimum payment due?
It is the amount that a card holder has to pay before the due date. It is generally ccomputed as 5% of the total amount due on the card. If we pay minimum payment then the cardholder is free from from late payment charges but the issuer will charge finance charges on the rest of the remaining amount. So its better to pay the maximum amount.

Q. Can I convert my purchase into EMI?
Yes, we can convert our purchase into EMI (Equal Monthly Installments), it depend on the issuer to allow cardholder to use service on his card or not. So for more details on this you can contact you Issuer's customer care.

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