Best Credit Cards In India
Need for Credit Cards:
As the purchasing power of people has increased, the crime rate also followed suit. Therefore the need to carry money safely became a necessity. This led to the popularity of credit cards. The freedom to spend the hard earned money safely has thus become a reality.
Overview of credit and credit card:-
Credits have been part of every society since ages and it can be defined in a way that a borrower will be paying money (or any resources) to buy money (or any resources) from a lender and this payment is actually made in the later period. The payment made by borrower to buy money from lender will depend on the time period and this can be called the interest rate.
In times of monarchy there were no proper laws that governed such transactions. Now we are living in a nation that is democratic and with governing laws, the lenders (banks) have set of rules and regulations for this money transaction process. A person can comfortably go ahead in purchasing a credit card today rather than in the past as the risk is comparatively reduced. Here a point that is to be noted is that, the borrower is a consumer who purchases products or services in money that is provided by bank as credit. This credit is usually repaid on a monthly basis.
Essential features of a credit card:-
In Indian market there are many credit cards for different purposes and every credit card has tags with attractive offers. These offers may mislead so it is very important for a person to consider some essential factors while purchasing credit cards. Few such factors are listed below.
- Interest rate
- Grace period
- Monthly installment limit
- Usage limit and conditions
Credit cards in India:-
As mentioned above there are many credit cards to suit different needs of a person and many private as well as government banks provide credit cards. The basic need may vary from person to person today, for example: An office going employee will be worried about how he can fill fuel to reach office, a marketing executive may be worried about air ticket costs for every travel of his. Credit cards come into picture in such instances with economic back up of banks. Banks have come up with names of precious metals to credit cards and these cards are as precious as these metals if our mind controls the card and not the other way round. Here is a list of banks and the types of cards they provide.
Citi bank
- Life style – Membership for clubs, entry for VIP lounges
- Travel – Air tickets and fuel
- Shopping – shopping facilities with discounts
HDFC
- Corporate cards – discounts in air travel and hotel stays for business
- Visa value plus cards – cash back on medical expenses, retail purchases etc
Axis bank
- Easy credit card – minimum documentation to purchase this card
- Trust chemists credit card – purchase of medical products in a chain of retail pharmaceuticals
Benefits of credit cards:-
There are certain benefits of usage credit cards and if a person is well aware of negatives and positives of a card these benefits can become valuable for a borrower at times.
- All time money back up is available and this can prove crucial at times when a person’s life is at risk.
- Money can be easily and immediately accessed during urgency.
- Cards can certify a person’s stand in debts and this certification can help gain loans for basic necessities.
Use credit card with caution:-
Benefits can suddenly become whirlpools that pull a person into debt muck. Therefore there are few points that a user has to take care while using credit cards.
- Be sure to read all terms and conditions twice before purchasing a credit card.
- Remember credit is fine if used for a necessity and not comfort.
- A person should stay updated with debts and expenses using credit cards are to be calculative.
- The monthly installments should clear as much credit as possible to avoid paying higher interest rates. Using grace period is always helpful than staying in credit for a long period.
Credit cards will be great as a modern day ‘akshaya patra’ instead of ‘genie’s lamp’. If a person handles the bridle of a wild horse (i.e. desire) that runs within him/her, credit card will be a boon. If this horse is left to run wild then the banks control the rider with their bridle.
Contributed By: B C Shetty & Co |
|
Established in 1985 by Mr.Chandra Shekar Shetty, operating from 3 branches, B.C.Shetty & Co. is a firm dedicated to serving their clients with utmost transperancy by offering qualitative professional service. | |
