Credit card online-An overview
Credit card online-An overview
ONLINE CREDIT CARD AN OVERVIEW
Introduction
In today's world everything is based on technology and making payments online or even offline, requires a credit card. Credit cards help to arrange for heavy unplanned cash during emergency and even pay for regular business transactions. A credit card is basically a service provided by banks to customers who may or may not be having accounts with them. With a credit card, users can shop for commodities, consumer goods, fuel, automobiles, and practically everything under the sun, at stores where credit cards are accepted, without paying any interest. There are varieties of cards to choose from, depending on the necessities of the person. Credit cards can be applied in different ways; through online, paper application or via phone.
How to Apply?
With the Internet, a credit card can be applied online and a response is received in minutes - instead of waiting weeks and weeks. If people have good credit, they'll have no problems at all being approved online for a credit card. Those cards that have the best terms and rates are always available for those who have good credit. A free credit report can be obtained online. The credit card company will all ask for personal information, such as name, phone number, social security number, age, employer, income, and things of that nature. Before filling up the application online for new card, the terms and conditions must be read very carefully. Once applied, the company will use social security number to pull credit report and use it to determine credibility and whether or not they can be approved for a credit card.
It must be ensured that the website is properly encrypted. The standard encryption these days is SSL 128-bit, which ensure that the information sent is protected. If the website has less than 128-bit encryption, it may be possible for someone else to steal the information - which could result in identity theft. After the application I filled up and sent, the decision will be shown on the screen. If the decision isn't shown on the screen, it will be mailed via traditional snail mail. If not approved, it will be mailed with the reason. If approved, the credit card will be received in the mail within a few days. Applying for a credit card online is always the preferred way to receive a credit card, as things will work much faster.
Terms used in online credit card
Eligibility Credit Card companies/ issuing banks do have a minimum income level requirement which serve as the preliminary point to apply for credit card. The income requirement varies from bank to bank, ranging between Rs.60, 000 to Rs.2lakh per annum, depending upon the type of card and also upon risk profile. For those who have a regular and steady income source, it helps, as the banks issuing credit cards need to be sure whether or not they will be able to repay the expenses incurred through their credit card. They have to be at least 21 years of age and not more than 65 years.
Billing cycle This refers to the time span for purchase of goods on credit, and to pay later. As a standard, the billing cycle of credit cards in India is of 45 days. This means that if the billing cycle starts at 1st March, purchase can be made on that date and payment is made 45 days later, i.e., 14th April. However, the purchase period, i.e., the period in which the actual purchase can be made is 30 days. Hence, bill is made for our purchases until 30th March and start off on a fresh purchase period starting the next day, for which it would be billed in the next cycle.
Grace period The grace period is the number of days allowed to pay our bill in full without triggering any interest. For example, the credit card company may say that "25 days from the statement date, provided previous balance is paid in full by the due date." The grace period usually applies only to new purchases, and not for cash advances or balance transfers. Instead, interest charges start right away.
If any balance is carried over from the preceding month, the grace period may not be available for new purchases. Instead, interest is charged as soon as purchase is made (in addition to interest charged on the earlier balance not paid off). Usually, banks offer a grace period after the bill is due, before charging the interest, which is actually an advantage in case of emergencies. One should always go for the card offering the longest grace period.
The credit limit signifies the amount of credit that can be availed in one billing cycle. Banks generally have different categories of credit cards to indicate the same. The ranking goes like this; Silver (standard, lowest credit), Gold (higher credit), Platinum (highest credit). Banks usually assign these categories based on one's paying capabilities according to their parameters.
Types to choose In India there are essentially three types of cards available, Visa, Master Card and Amex (American Express). Participating banks like Citibank or ICICI then issue these cards to the subscribers. Both Visa and Master Card have been popular in India and have an almost equal market share and as for Amex, it is comparatively a new player in India and also it issues its cards only through American Express Bank.
Minimum salary A minimum salary criterion differs on the type of card applied for. A salary of at least Rs.70000 to 75,000 per annum for ordinary cards and for a Gold card, up to Rs.1lakh 80,000 per annum is needed.
Cost The basic cost involved in applying for a card comprises the joining fee, which varies from bank to bank and on the type of card applied for. Joining fees (a one-time payment) vary from Rs.100 to Rs.1000. Every year an annual fee is charged to continue the membership on the card. Annual fees vary from Rs.400 to Rs.2000 and are payable in advance (at the beginning of the year). It is not necessary to pay cash for the annual fees as the issuing banks automatically bill these to the credit card in the first monthly billing statement, and hereafter, every year.
Fees delay It is sensible to pay off at least the minimum amount due on out-standings every month. This is because the late payment fees are very high, around 15% of minimum payment due or 2.5% of the total outstanding balance. Late payment fees are chargeable after the stipulated 'interest-free period'.
Add on card An Add-on card is usually for dependents of the credit card holder, be it a spouse, parents or children. Any additional cards under this head come at a fee, which varies between Rs.125 to Rs.1 000. But the credit limit remains the same. A drawback is that the credit limit gets divided between the main card and add-on cards since an add-on card does not get additional credit limit. All expenses on the card are billed to us. On the statement date, a comprehensive bill is given which includes the payment made through both the cards.
Global card Global Card enables to use credit card to travel overseas. Global cards are accepted in over 200 countries. It can also be used it as an ATM card. It also gives the flexibility of using the card instead of using cash or traveler's cheques. Money can be spent in dollars or any other foreign currency and the dues are settled in local currency. The credit limit is based on the Basic Travel Quota (BTQ) entitlement. For a frequent traveller, abroad, it is best to make credit card, Global.
PIN It is the Personal Identification Number is unique to every card and is a combination of numbers. It is basically a 16 digit number with the first 8 digits reserving information about the card issuer and the country and the next 8 digits stores customer information like the category of the membership etc. The PIN serves as a key, which allows availing certain services like cash withdrawal from ATMs. This number is very important and must be stored carefully. If the PIN is lost the bank will replace the credit card and issue a new PIN. This replacement process comes at a cost and gets billed in the next statement.
Late payment fee They are payable on the occasion of any delay in repayment of the out-standings on credit card after the predetermined interest-free period. These charges are very high (around 15% of minimum payment due or 2.5% of the total outstanding balance) and card members are well advised to pay off at least the minimum amount due on out-standings every month.
Reward point It was introduced by Credit Card companies to promote regular usage of their cards by its members. This concept basically rewards with points for so-and-so amount spent on purchase or services through the card. These points can then be redeemed for gifts or for select product purchases or even for paying the annual fees in some cases.
Insurance cover Insurance is now a standard feature for credit cards, both personal and on the articles purchased on the credit card. The insurance cover is basically determined by the type of credit card owned, like Gold, Silver or Executive. Gold cards naturally carry the highest insurance cover for its members. Among the other types of insurance provided by the card companies are:
Personal accident insurance This covers air/road accidents etc. The amount insured again differs across the categories and varies from banks to banks.
Baggage Cover This provides cover against the loss of one's baggage while travelling. This feature is available on Gold Cards and International Credit Cards and frequent travellers may find this feature useful.
Air Accident Insurance Every Credit Card holder is insured for a certain amount of money, which is paid upon the death of the individual while travelling by air. The insurance cover varies between bank to bank and upon the type of card owned.
Life insurance cover Every Credit Card holder is insured for a certain sum of money, which is paid upon the death of the individual. The insurance cover varies from bank to bank and depends upon the type of card owned.
Insurance cover to Spouse Credit Card companies also provides insurance covers for a spouse or the holder of a Supplementary/Add-on card. The amount and the type of insurance cover provided are basically insurance cover for its members. The insurance cover varies between Rs.50,000 to Rs.5,00, 000 depending on the issuing bank and the type of card owned.
Purchase protection feature It means all items bought from the card are automatically insured from damages or loss due to theft/fire, up to a certain amount. This generally works out to around Rs.40, 000 worth of cover.
Cash advance facility Cash advance (withdrawal) fees are payable when cash is withdrawn from an automatic teller machine using the credit card. Cash advance facility should be used only when it is extremely necessary. The interest rate is very high, usually around 36% to 38%. Cash advance fees are chargeable on a daily basis and at about 2.5% per transaction of fixed at a minimum of Rs.50 or 100.
Protection tips The card should always be kept safely in our wallet/purse. The cards should not disclose the card number. A copy of signed charge slips should always be kept for tally the amount spent with bill.
If the card is stolen, it should be informed to the bank immediately. The bank will then immediately freeze/deactivate the card to prevent any fraud and issue a replacement card.
Account balance vs. minimum amount due Account Balance is the total account debt as of the statement date, which includes any unpaid balances, new purchases, cash advances, apart from other charges such as fees and charges. Minimum Amount Due is the absolute minimum to be paid and the date by which it must be paid it to keep the account current. It is a good idea to always try and pay back substantially more than minimum due. This will help open up spending limit and improve credit rating.
Cash advance A cash advance is a short-term loan. This will have a one-time transaction fee (sometimes as much as 3% of the advance) in addition to finance charges that start to accrue immediately. The APR (Annual Percentage Rate) for cash advances is often higher than for purchases. It is therefore not a good idea to use cash advances to meet ordinary living expenses, to buy now rather than wait, to make a down payment or to pay other credit card bills. We get cash advance in the following ways.
At a bank: With the card, a cash advance can be charged at virtually any bank, the world over.
Through an ATM: With the card and the personal identification number (PIN), a request is made for cash advance at an automated teller machine (ATM), anytime, anywhere!
With a cheque: Many credit card issuers provide special "convenience" cheque to their customers to use when paying with their card is not an option.
Errors on credit card statement credit card statement must be read carefully and all the transactions are to be checked that have been billed. If there is a dispute, it must be informed to the credit card company within 30 days of receipt of the Statement, failing which it would be construed that all charges and the Statement are entirely in order and has been accepted.
Keeping credit card safe
Credit cards must be kept in a safe place.
Account number should not be given over the phone.
A card with added security features should be selected.
A line should be drawn through the blank space above the total on charge slips to prevent changes and tear up carbons from slips.
Blank charge slips should not be signed.
Receipts should be checked against monthly statements. Errors must be reported within 30 days of the statement mailing date.
Account number or personal identification number (PIN) should not be put on the outside of an envelope or postcard.
Conclusion
There are a lot of credit cards to choose from. That final decision though, is entirely up to user. There are a lot of great companies and banks out there, although it's up to the user to find the best credit card for his needs. He can choose to go with a company or bank that's local to him, or get online and look for his credit card. Watch Minnesota Timberwolves vs Golden State Warriors Online NBA Links Live Buying And Selling At Auctions - How To Find Sizzling Products That Will Help You Make Money Online Online Degrees - How Much Does it Cost For an Online Degree and Can I Get it Free? Stream or Watch St.Pauli vs VfB Stuttgart Online Live Feed Online Degrees - What Online Colleges Offer Financial Aid? Trade In Egyptian Watch Cagliari vs Udinese NCAA Scores Online Live Six-Figure Income - Are Online Success Modules Effective Money Making Systems Watch Lille vs Valenciennes Online via PC STREAM Pair Trading Signals Review-A Real time Trading Signal Service for Stock, ETF and Forex Traders Buying grownup Diapers Online Save your Money and Time by Finding Hot Deals online Gaining Dollars Online Is Very Simple And Straight Foward