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Credit Card Variant Rewards Joining Fee Annual Fee Features

Privy League Signature Kotak Credit Card.

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No annual fee. No joining fee. know More

PVR Gold Kotak Credit Card

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No annual fee. Rs. 499/- know More

Are you looking to apply for credit card? Do you want to know what is credit card? Read on to find out.

Credit cards are issued by different banks that allow individuals to buy or consume goods and services on credit. This means that unlike debit cards where the money is deducted directly from the account, credit cards give you the advantage of paying later. However, the ease and the convenience of using credit cards come with a cost. You might have to pay interest on the amount and a yearly maintenance fee to continue with the credit card. You can also earn rewards and free vouchers as well.   

How to select the right credit card?

There are plenty of different credit cards available in the market for individuals with different spending patterns. However, before you zero down on a credit card, you should ask yourself the question whether you would be paying interest on your credit card dues. You don’t have to pay any interest rate if you pay the outstanding amount within the due date. But if you have the tendency or history of overspending, than it will be better to steer clear from credit cards or till the time you become financially disciplined. It is because interest rate charged on these credit cards is one of the highest in the market and it can soon crop up as a big financial headache. Other option in this scenario would be to take a credit card with lower credit limit.

In addition, you need to check the different incentives provided by the credit card company and select the credit card that aligns with your lifestyle.

Just like everyone has their favourite style of clothing and food, different credit cards are meant for different individuals.  The eligibility of the different cards depend on various factors such as your credit score and your monthly income.  The higher your credit score better will be the chances of getting a card with more perks.

Credit card comes with different benefits. Credit cards give discounts on restaurant bills, movie tickets, flights etc. So be aware of the deals and discounts that credit cards offer. There are cards exclusively meant for frequent travellers that add air miles and offer heavy discounts on hotels, train travel and buses as well. Other lifestyle related cards give offers and discounts on clothing, movie tickets and restaurants.

Advantages of using a credit card

Many credit cards offer attractive offers and deals when you sign up with them, e.g. complimentary flights, low or zero fees and other promotional and reduced interest rates.

Credit card pay the money you spend on the back into your account. This will help you save money on your monthly expenses. 

When travelling overseas, you don’t have to carry the currency of those countries. You can make purchases in a foreign country with a travel credit card.

Credit card can help you through emergencies. Accidents come unannounced. In such a scenario, credit cards provide the much needed support. You can always withdraw cash through credit cards. However, you should remember that many credit cards levy charges for withdrawing cash.

Credit cards are safer payment mechanism as it comes with multiple level of securities and it can be quickly cancelled if stolen.

However, there are certain drawbacks of credit cards as well.

With a credit card, it is easy to fall in the credit card debt trap. Buying things on credit is easy and if you don’t pay within the stipulated time frame, the due amount may attract heavy interest and other fees. The joy of using a credit card may soon turn into pain if left unchecked.

Every credit card comes with a limit. Maxing your credit limit or carrying over balances can adversely impact your CIBIL score.

Just like everything else in this world, credit cards also come with their set of positives and negatives. Credit cards can be helpful in many ways but it can turn into a demon if you don’t use it wisely. Look for a credit card that gives you the best deals and offers lower interest rates and lesser charges. With time, you can also upgrade the credit limit of your card or buy a new card.  

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