How does a credit card work?

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Given below are the steps that shows how a card works:

They facilitate online and in-store purchases as well as bill payments.
When they are used for a transaction, the card details are sent to the merchant’s bank for authorization.
The card issuer then verifies the information and decides whether to approve or decline the transaction.
If approved, the payment is made to the merchant and the card’s available credit is reduced.
At the end of the billing cycle, the card issuer sends a statement detailing all transactions, previous and new balances, minimum payment due, and due date.
The grace period is the time between a purchase and the statement’s due date, during which no interest accrues if the bill is paid in full.
Carrying a balance beyond the grace period may result in interest charges, determined by the card’s annual percentage rate (APR), which includes interest rate and other fees.

How to choose the right credit card?

You can choose a card that best suits your needs, by considering the following factors:

Your spending pattern: go for a card that helps you maximising your savings, depending on your spending pattern.
The reward type: choose a card based on the reward type of your choice such as rewards points, airmiles & cashback rewards.
Fees and charges: ensure that the card comes with comparatively lower fees and charges.
Offers on the card: opt for a card that come with great offers on shopping, dining, online spends etc.
Welcome bonus or gift: go for a card that gives you the best welcome bonus or gift.

How to Apply for a Credit Card Online

You can compare & apply for a credit card on BankBazaar by following these four simple steps:

Step 1: Provide your employment details, pin code, mobile number, and first and last name with just a few clicks.

Step 2: Enter the OTP received on your phone and click on ‘Submit’.

Step 3: Based on the profile, the best cards available to you will be displayed on your screen.

Step 4: Select the card you like, apply for it and enjoy instant approval online.

Alternately, you can also apply for a card online on the bank’s website.

Alternately, you can also apply for a card online on the bank’s website.https://www.youtube.com/embed/l_k20fvHxak?rel=0&enablejsapi=1&origin=https%3A%2F%2Fwww.bankbazaar.com

Benefits of Applying for Credit Cards Online on BankBazaar

BankBazaar offers an end-to-end application process, wherein you can browse through most of the credit cards offered by various banks, compare their features and benefits, and apply for the best credit card in just a few clicks.

Let’s look at the perks that we offer for applying for a credit card through us.

Choose from a range of credit cards that cater to your needs.
Enjoy A simple and hassle-free application process.
Avail 24×7 Customer Support.

What is a Credit Card Number?

It is the 12 to 16 digit number printed on the front or back of your card. It is used to identify both the credit card issuer and the account holder and is normally 16 digits long and appears in sets of four.

Apply For Credit Card on BankBazaar

FAQs on Credit Card

What is a Credit Card? A credit cards is a financial tool that enables cardholders to pay for their online and offline purchases on credit. The cardholders usually don’t have to pay any interest on their purchases, if they pay off their credit card bills within the due date.
Can I get a credit card online? Yes. You can apply for a credit card online on the credit card issuer’s website, or you can conveniently compare multiple cards and apply for one on BankBazaar.
Does my credit card number change when I renew? The renewed card usually has the same number as your expired card, but the new card’s CVV (Card Verification Value) number is different.
How can I get a card for the first time? If you already have a credit history, you can check your eligibility, choose a card that suits your lifestyle needs and apply for it on BankBazaar. If you do not have a credit history, you can opt for a secure credit card, usually offered against fixed deposits.
How do credit cards work? A credit card gives you a line of credit; you can use this to make purchases, cash advances and balance transfers. You will have to pay back the amount by the due date specified by the bank. You have the option to pay the minimum amount, any amount more than that, or the total amount due.
What is the meaning of a Credit Card Limit? The credit limit is the maximum amount one can spend on their card. A higher credit limit will allow you to spend more, and can also help improve your credit score.
Do I need to use my credit card every month? You do not have to use your card every month, but you must use it often to avoid the bank labelling it as an inactive card.
What is the minimum credit score for getting a card? A credit score above 750 is ideal for getting a credit card.
Can I get a credit card without a job? Even if you do not have a job and have a substantial cash inflow into your account every month, you may be eligible for a credit card.
Can I get a credit card in one day? Yes. Due to the online application system, your credit card application could be approved in one day. However, you may not get the physical credit card in one day.
Do credit cards come with airport lounge benefits? Yes. Many credit cards offer complimentary access to domestic and international airport lounges.
Are there any benefits of having a credit card? Yes. Most credit cards come with a reward point system that lets you earn points on your credit card spends. You can redeem these points for vouchers, cashback, or air miles.
How many credit cards should I have? The number one should own is not fixed. It depends on your financial ability and your spending behaviour. However, ensure that you smartly manage all the cards and make payments on time.
Can I get a credit card with a bad credit score? Credit scores above 750 are generally deemed suitable for credit card approvals. Scores below 750 are usually considered poor, and approval may be subject to pledging a collateral as security (collateral such as fixed deposits).
Which is the best and easiest way to apply for a credit card? The best and easiest way to get a credit card is to apply for it on a platform like BankBazaar. You can compare the features, benefits, fees, interest rates, etc., and choose a card that best suits your needs.
What does ‘minimum due’ mean on a credit card statement? The minimum amount due is the minimum amount a credit cardholder needs to pay in case they cannot pay the total outstanding. It is typically 5% of the total outstanding amount on the card.
Do I need to pay a processing fee for a loan against a credit card? Yes. Banks do charge processing fees for loans against credit cards. However, you need to pay a very nominal processing fee.
Can I use my credit card in other countries? It depends on your card type. If your credit card is accepted globally, you can use it in other countries, as mentioned by your card issuer. However, a foreign transaction fee may be charged for all purchases abroad.
If I make a late payment on my credit card, will it affect my credit score? It depends on various factors – the number of days late, the number of instances, and the amount due. Based on all this, your credit card issuer would decide whether to report the same to the credit agencies.
What are the charges for withdrawing cash using my credit card? Different banks will charge different fees. Typically, the charge will range from 2.5% to 3% of your transaction amount. There will be a minimum amount of Rs.250 to Rs.500.
What should I do when my credit card is lost? When you lose your credit card, you need to notify the bank immediately, and they will block your account.
Can I get a credit card without a credit score? Yes, you may be able to get a secured credit card without having a credit score. However, the bank will charge a higher fee. Usually, banks accept a CIBIL score of 700-750 and above to issue a card.
How do I reach credit card customer care? You can reach a bank’s credit card customer care by calling their customer care number or by sending an email to them. You may also contact them though chat support or WhatsApp support.
How does the card issuer decide my credit limit? The credit card issuer will decide the credit limit for your card by looking into a lot of factors, like your repayment history, credit score, monthly income, total debt, etc.
Are there any charges for international purchases made with credit cards? Yes, you might be charged a fee of 1% to 4% of the transaction amount for international transactions.