A credit card is a plastic card that a customer uses to make the payment an alternate substitute for cash. The credit card can be availed from any of the banks irrespective of the customer having a bank account or not. Multiple banks offer a credit card to the customer without having a bank account. The customer can avail of multiple offers on the credit card while using it. There are offers on redemption; discount offers on the credit card for particular merchants with whom the bank has tie-up. Banks also provide redemption of points to adjustment of bill value to the customers. The bank offers credit to the customers for one month. That means the amount spent this month on the bill is generated for that in the next billing cycle, and the amount can be paid in the next month before the due date is over. This helps the customer spend money in an early stage and pay bills later after receiving the salary. Credit cards help make payments quickly and in a hassle-free way. The credit card helps spend money by the customer even when falling short of bank balance in the bank account.
The safety of the credit card is another major issue for the customer. Thus, to protect the funds, the customer is given a unique pin to make the transactions via credit card. For the online payment, there is a one-time password being sent to the registered mobile number of the customer. Credit card usage and customers are growing rapidly as the customers find it extremely convenient to pay to spend through credit cards and pay the bills later. Also, the attractive offers on credit cards are one of the reasons why people are increasingly opting for a credit card. The credit limit given by the bank depends upon the income of the borrower and the amount of bank balance the account holder maintains. The bank also allows the customer to convert the credit card bill into EMI. The credit card bill can be converted in 3 months or else six months equal installments as well. The bank may or may not charge the interest on the EMI option depending on the bank policy. The customer may opt for an auto-debit policy as well in case of payment of credit card bill to avoid the penalty being charged by the bank and to pay the bills on time.
Following are the benefits of Credit Cards to the customer
- The customer can spend the money in the current month and pay the bills next month
- The customer is provided with attractive offers on shopping & purchases, thus making an attractive proposition
- The higher the usage of credit, the better is the credit score which gets improved in case of timely bill payment
- The bills of the credit card can also be split into easy EMI options to repay the bills
- A frequent flyer miles program in which the cardholder can use covert the credit card points into air-miles and thus can save money on the credit card or else in case of higher points can travel for free
- The customer can make covert the credit card points into the amount that can be adjusted in the credit card bill, thus getting a rebate on the spending
- There is a free accidental insurance cover provided to the customer in case of the credit card, which the customer can utilize whenever required
- The credit cards are some of the domestic ones while there are also international debit cards being allotted which can even be used for international payments from India and also for the payments can be done while moving across globally into international currency
- The safety of the payment is also there in the case of credit card payment, as the card is secured with a safety pin. Thus with the help of a safety pin, the card is 100% secured
- In case if the card is lost, the cardholder can block the card by contacting customer care, and thus the money of the cardholder is safe
Thus, opting credit card is highly recommended for the bank account holders as the credit card is a very safe & secured mode of payment for the customer. The customer can avail of various discounts & offers on the card and save money on shopping, dining & travel purposes.