Credit Card

A Credit Card is a plastic Card with a magnetic tape that contains electronic information about the Credit Card holders authentication and about the Credit Card issuing Bank / Company.

How Credit card works?

Credit Card Approval:

The Credit card is issued to the Customer/user by the Bank or Credit Union after proper verification and with documentation. If someone holds a decent regular job, the approval process is very simple. For others, verification and documentation depends on the customer's existing reputation with the bank. Again, for all the applicants, Credit History check is a must. A good Credit History is an advantage for fast approval of a Credit card.

Credit card usage:

Once the Credit card is issued to the customer, they can use it in various ways.
1. Credit card can be used to shop at various merchant shops, eat food at hotels, book ticket at railway counters, pay tuition fees in training institutes etc. (It doesn't mean that Credit card are acceptable at all merchants or hotels etc)
2. A lot of internet Websites accept Credit card for online shopping or e-ticket booking. A customer can use the Credit card to purchase goods or services online. For online shopping, Credit card is a great tool.

Payment Back to the Credit card issuer:

Credit card payment works in a cycle. Generally Credit card issuers give a free credit for certain days. It varies issuer to issuer. Approximately 50 to 52 days. The customer has to pay the entire amount billed for their Credit card within this period.
Also, there is a Partial payment option for Credit card. But, it is not advisable as the entire amount will be charged with interest in case of partial payment.
Non-payment will attract late payment fee as well as interest.
The interest rates are too high for Credit card. But again it varies from issuer to issuer and from plan to plan.

Credit card Types:

1. Cash back Credit card
2. Rewards Credit card
3. Travel Credit card
4. Business Credit card
5. Other Credit card

Credit card Issuers:

Here is a list of few major Credit card issuers in India:
1. State bank of India
2. ICICI Bank
3. HSBC Bank
4. HDFC Bank
5. Citibank
6. Standard Chartered Bank
7. ABN Amro
8. American Express
9. Axis Bank
10. Bank of Baroda
11. Deutsche Bank
12. Barclays Bank
13. Canara Bank
14. Amex
15. Kotak Mahindra
etc