You can spend a lot of money with credit cards, which are complex financial products. Credit cards are helpful to have in your wallet, but you should know a few things about them. When you don’t know, you should at least know how to quickly and easily find out.
It’s pretty easy to identify your credit card’s processing network; there are only four: Visa, MasterCard, American Express, and Discover. It is common for Bajaj Finserv credit cards to have the front of the card printed with the name of the card issuer.
However, some credit cards, especially retail cards, do not clearly identify the card issuer. If you’re unsure who issued your credit card, check the back of the card or your billing statement. You may not realize you’ve been charged annual fees because they’re only charged once a year.
Your anniversary month is usually when your credit card assess the fee. Make sure you mark the fee on your calendars like a holiday or a birthday. If needed, you can pay down your balance to clear up enough available credit for it so you know it’s coming.
A credit card’s interest rate can vary depending on whether it is used for purchases, balance transfers, or cash advances. You might even be eligible for a promotional rate if you just opened a credit card. If you know, you’ll never make a balance transfer or cash advance, and you don’t need to keep an eye on the rate.
It is essential, however, to keep track of the interest rate on purchases. Keeping an eye on your credit card and billing statement inserts will help you stay updated on changes to your interest rate. Almost every credit card charges a late fee for payments received after the due date.
Types of Credit Cards
First, you must be aware of the different types of credit cards offered by various banks. Many types of credit cards are available, including fuel cards, cashback cards, dining cards, reward cards, and many more. The category of credit cards should be determined by analyzing your expenses first.
On the agent’s website, you can compare all the credit cards from different banks since they will have comparisons of all the cards. A particular bank’s website will only display that bank’s credit cards, not the credit cards of other banks, when comparing credit cards.
The Fee Of The Credit Card
It is also essential to check the annual and renewal fees of the card before applying. Additionally, you should know how many transactions you must make each year to waive the yearly or renewal fee.
Eligibility Criteria Of The Credit Card
You must also check the eligibility requirements before applying for the card. Check to see if your income qualifies and if you are at least the required age for the card. A valid document proving your eligibility for credit card will also be required.
Interest Applicable To Credit Cards
In case you do not make your credit card payments on time, the bank will charge you interest on the outstanding balance. When applying for a credit card, you should know the prevailing interest rate.
You must be aware of the annual charges on your credit cards before applying. Some companies offer them for free initially but later charge for them. Additionally, some companies offer free annual memberships.
Companies generally determine your credit limit based on your CIBIL Score. A bad CIBIL score will prevent you from being offered a credit card.