What is a credit card, and how does it work?
A credit card is a financial instrument that allows the cardholder to make transactions without paying for it instantly. The credit card issuing company pays for the good or service on the cardholder’s behalf and issues a credit card statement to the card holder at the end of the billing cycle. It mentions the amount owed, which needs to be repaid on or before the due date.
What is a credit card, and how does it work?
A credit card is a financial instrument that allows the cardholder to make transactions without paying for it instantly. The credit card issuing company pays for the good or service on the cardholder’s behalf and issues a credit card statement to the card holder at the end of the billing cycle. It mentions the amount owed, which needs to be repaid on or before the due date.
What is a credit card statement?
A credit card statement is issued by the bank or the credit card company at the end of the billing cycle. It presents a summary of all the transactions you have made during the billing period. The credit card statement mentions the amount you owe to the bank, the minimum amount due and the due date.
What are the benefits of a credit card?
The advantages of using a credit card are as follows:
You can purchase high-end products on credit, which means you do not need to postpone your plans due to the lack of funds. The Krishi Card even converts bills exceeding Rs. 2,500 into easily payable monthly instalments.
Many credit cards offer a waiver on fuel surcharge, along with complimentary airport lounge access and other perks.
Redeemable reward points help you earn other rewards like gift vouchers, free movie tickets etc.
Credit cards offer lucrative discounts on a variety of purchases. Thus, they help you in saving significantly.
How do you know if you are eligible for a credit card?
You can learn about your eligibility by going through the eligibility criteria on the FDA India. You must be an adult (18 years of age) to apply for a credit card and not more than 70 years old. However, the Krishi Card is only issued to those aged 25 to 65 years. Having a steady source of income and a credit score of 750 or above are essential requirements too.
What is a credit card balance?
A credit card balance is the total amount of money you owe to the credit card company. It is mentioned in the credit card statement. You need to repay this amount on or before the due date to avoid any penalty.
Whats the difference between a credit card and a debit card?
When you use a debit card, you withdraw money from your bank account, as opposed to a credit card, where the issuer pays the amount on your behalf. You essentially take a loan from the credit card company, which must be repaid on or before the due date. If you fail to clear the dues, you are changed interest on the outstanding amount.
What does my credit score need to be to get my credit card?
You should have a credit score of 750 or above to get a credit card.
Can we use a credit card at an ATM?
Yes, you can use your credit card at an ATM. However, such transactions come with the baggage of high fees and interest rates. That said, the Krishi Card allows you to withdraw cash from any ATM interest-free for up to 50 days.
How do I choose a credit card for the first time?
You need to consider the below-mentioned factors while applying for a credit card for the first time:
- Ensure that you have a steady source of income. If your income fluctuates, consider applying for a secured credit card.
- Ensure that you have a minimum credit score of 750. A poor credit history will reduce your chances of getting an approval.
- Understand your financial requirements and choose a credit card accordingly. For instance, if you are a frequent traveller, be it business or pleasure, you can apply for a travel credit card.
What is the use of a credit card?
A credit card allows you to buy any product of your choice on credit. However, you much repay the issuer after a stipulated period.
Credit cards are financial instruments that can come in handy during a cash crunch.
Can you get a credit card with no money?
You need to fulfil the income eligibility criteria to get approved for a credit card. However, if you are a student without an income source, you can apply for a student credit card.
What is an example of a credit card number?
A credit card number is a unique 16-digit number exclusive to every credit card. The first digit helps in identifying the credit card company. For example, VISA credit cards begin with the number “4”, while MasterCard’s start with the digit “5”. Similarly, Discover credit cards start with the number “6”. Second to sixth-placed digits help in identifying the bank. The 7th to 15th digits signify the cardholder’s account number. The last remaining number is termed as the check digit. It is automatically generated based on the remaining numbers. The check digit helps in eliminating any errors.
Where is the card number on a credit card?
Every credit card contains some digits, typically a 16 digit numeric number, unique to each card. A credit card number is essential to complete any transaction. It helps in authenticating a cardholder.
Where can I check the annual fees of my credit card?
Each Krishi Card comes with a different annual fee. You can check the annual fee of your SuperCard under the fees and charges section. You can also check the annual fee for the card variant you are interested in
Can I use my credit card for international transactions?
A few variants like World Prime SuperCard, World Plus and Value Plus SuperCard offer an international transaction facility.
Is The Krishi Card offered for free?
Most of our credit cards either come with a no joining fee benefit or an annual fee waiver. Here is a list of our credit cards that offer the annual fee waiver and first year free benefit:
Credit cards with no joining fee-
- Platinum Plus SuperCard – First-Year-Free
- Binge SuperCard – First-Year-Free
- Platinum Choice SuperCard – First-Year-Free
Credit cards with an annual fee waiver-
- Binge SuperCard
- Platinum Choice SuperCard
- Platinum Plus SuperCard
- Platinum Shop Daily
- Platinum Edge SuperCard
- Freedom SuperCard
- World Plus SuperCard
Is there a renewal fee for my credit card?
Each Krishi Card has a different renewal fee. However, this renewal fee will be waived off if you spend a minimum pre-defined amount using your credit card.
Where can I use my contactless credit card?
All 19 Krishi Card variants have a touch and pay facility which can be availed at any store/ outlet across India.
What if I cross the credit limit on my credit card?
It is not possible to cross your credit limit as you won’t be able to use your card beyond an assigned limit.
What should I do in case my credit card is lost or stolen?
In case you lose your card of if your credit card is stolen, you should immediately report this to the RBL Bank. You can contact RBL Bank’s customer care executives at +91 22 71190900 or write at info@fdaindia.in .
What is a credit card?
A credit card is a payment instrument that gives customers a pre-set credit limit. Using this credit limit, the customer can pay for purchases without having to pay in cash or issuing a cheque. The card’s limit is decided by the financial institution depending on the customer’s credit score and monthly income.
What is the minimum age to get a credit card in India?
The minimum age in India to avail a credit card is 18 years. However, Bajaj Finserv maintains 25 years as the minimum age, keeping the repayment capability of the applicants in mind. Users usually possess a stable source of income by the age of 25 and can meet the minimum salary requirements easily. This reduces the chances of defaulting.
How to apply for a credit card?
You can easily apply for krishi card by submitting the online application form and the necessary documents.
What happens if I only pay the minimum due amount?
Paying the minimum due amount on your credit card allows you to avoid a penalty charge on the card. However, the outstanding balance gets carried forward to next month’s bill, leaving you with a larger amount to pay off. It also attracts interest on the due amount.
Should I pay my credit card in full?
Paying off credit card bills within the payment due date every month has the following benefits:
- Prevents you from accruing high interest on the outstanding balance
- Increases your CIBIL score and strengthens your credit report
- Clears your existing debt and gives you a full credit limit for new expenses
How can I pay my credit card bill?
You can now pay your credit card bills conveniently through NEFT transfer. However, the credit card issuer must be NEFT-enabled to receive the payment.
Follow these steps to pay your SuperCard bill using NEFT transfer:
Step 1: Log in to your net banking account and add RBL Bank as a beneficiary under third party transfer
Step 2: Add the IFSC code as RATN0CRCARD to make the credit card payment
Step 3: Enter your 16-digit Bajaj Finserv RBL Bank SuperCard number in the account number field on the banking page
Step 4: Enter the bank name as RBL Bank
Step 5: Enter the bank address as NOC Goregaon, Mumbai
Step 6: Click ‘Submit’ to finish your registration process
Once you are registered, make the payment. Your payment will reflect within 3 banking hours in your Krishi account.
When should I pay my credit card bill?
After your credit card bill is generated, you can make the payment any time within the due date every month. Failing to do so shall attract additional interest unnecessarily.
How much should I pay on my credit card to avoid interest?
The best practice to avoid interest on credit card dues is to pay off the full amount due within the payment due date.
How can I check my credit card statement?
You can receive your Bajaj Finserv RBL Bank credit card statement both offline and online in the following ways:
Offline
- You can contact the customer care executive to receive your statement at your residential address.
- You can also check your credit card statement using the SMS service. Type ‘GREEN” and send the message to 5607011 from your registered mobile number. Once the service is activated, you can receive your e-statement from the next billing cycle.
Online
- You can check your credit card statements through net banking. Login to view and download credit card statements.
- Your monthly credit card statements are also sent to your registered email ID.
How can I view my credit card statement online?
To view your credit card statement online, follow these steps:
- Log in to your account using your registered mobile number
- View and download the Krishi card statement for the respective month
If you are not registered for online services, use your mobile number and 16-digit credit card number to sign up.