A credit card is a plastic card. It is a mode of deferred payment, which allows you to buy products today on credit and you can pay for them in the future. When you use a credit card for purchasing any product or service, the credit card issuer pays money to the seller on your behalf, which you repay in future. There are numerous banks offering different types of credit cards, based upon your eligibility. The top credit card providers are ICICI Bank, HDFC Bank, SBI, Standard Chartered Bank etc. Before applying for axis bank credit card there are many questions in your mind you want to ask for. Some of the important questions are
What is a credit card and how is it different from a debit card?
A credit card is plastic money. ‘Buy now and pay later’ concept of the credit card make it more attractive, you can buy any product instantly. It is very useful when you don't have enough cash in hand, you can pay for the transaction by just swiping his/her credit card. The credit card also allows you to pay minimum balance and can pay the outstanding balance in the next month. Debits cards are different from the credit card because it pulls money directly from an associated bank account.
What do I need to apply for a credit card?
Applying for a credit card is a very simple and straightforward process, you just need to provide basic details. A student will need the name and location of the school and for the security purposes, you may need to know your mother’s maiden name.
How credit cards help you build credit?
Frequently purchase through credit card helps in generating credit history because card issuer reports your monthly payments to the credit bureaus. Your credit reports and credit are created on the basis of that information. By making a regular payment on time every month, you will be depicted as trustworthy buyers. You will also qualify for the cash backs, rewards etc.
How to get a credit card without a credit history?
You can also get the credit card if you don't have any credit history by following ways:
• Check for pre-qualified offers
• Apply for a student credit card
• Apply at your bank
• Try for secured credit card
When should I redeem rewards on a credit card?
Some cards scheme have no expiry date. On that schemes, you can earn and use that reward points any time when you required. On the other hand, some schemes are on an annual basis. You should use that reward point in the same year. You must read all the documents carefully to understand when the reward point expires.
What are instant approval credit cards?
Many banks offer instant approval of credit cards. For instant credit card, you need to apply online and will get quick approval from the bank side but it possible only when you have an excellent credit score. When you apply for the instant credit card online, the credit card company will check your credit score first, the higher your credit score, more likely your loan application will be approved.
These are the most frequent questions ask by the one who is looking for a new credit card.