Credit Card Uses-
shopping
bill payment
medical Expenses
A credit card is a type of loan that allows you to borrow money from the card issuer to make purchases, pay bills, or get cash advances. In exchange, you promise to pay back the borrowed amount plus interest and fees.
There are multiple benefits of using a credit card. Credit Card advantages include enhanced financial health, improved credit score, balance transfer, easy loan approval, access to funds in case of emergency, affordable EMIs, among multiple other additional benefits.
Credit cards can be a great financial tool when used carefully. Not only can you build a positive credit history, but the right card lets you earn rewards on your everyday spending and get value from added benefits. Just remember that there can be disadvantages to using a credit card, too.
Key Highlights of Credit Card Eligibility
| Age | Minimum of 18 years old |
|---|---|
| Income | Fixed deposit or minimum monthly or annual income as set by the bank |
| Employment | Salaried or Self-Employed |
| Interest Free Period | Up to 55 days |
| ATM Cash Withdrawal Charges | From 2.0% to 3.5% of the amount withdrawn |
In very simple terms, the Credit Limit or the Credit Card Limit is the maximum amount that a person can spend on his or her Credit Card. This limit is something that the issuing company fixes. Here are a few important aspects about the Credit Card Limit that you should know.
Credit card benefits
- Rewards such as cash back, miles, or points.
- Protection against fraud.
- Increased purchasing power.
- Not linked to a checking or savings account.
- Putting a hold on a rental car or hotel room.
- Building credit history.