Q. What is a Credit Card?

Ans..Credit card is a opportune substitute to cash or check-based transactions issued by banks and financial institutions, allowing the holder to make a purchase (or draw advance cash) on credit. The due amount at the end of the billing cycle may be paid as a lump sum within the due date in smaller installments before the last due date. The purchase made by a credit card are in fact short term unsecured micro loans and if paid off within a particular time (interest free period) do not have any interest payouts. Moreover, credit cards allow you to get advantage from the option of revolving credit i.e. you might pay off your credit card dues in one shot or make manifold small payments to pay off your debt. According to RBI data, as of December 2015, there were 2.27 crore credit cards in circulation within India. Even better, you can use credit cards not just within India but also worldwide

Q. How does a credit card differ from debit card?

Ans. The money that you withdraw via debit card is your own money which is debited from the bank account linked to your card or in other way you are spending from your own wallet. On the other hand, the money that you spend (purchases) or withdraw (cash advance) via a credit card is more like a short term loan arranged by card issuing entity. Instead of paying off this short term loan on a per use basis, all your expenses get converted into a consolidated bill at the end of the billing cycle.

What is the difference between VISA card and MasterCard?

Ans.Visa and MasterCard are international payment technology companies based out of the US that connects customers, businesses, banks and governments across more than 200 countries and provinces, enabling them to use digital currency instead of cash, checks, drafts, etc. Apart from VISA and MasterCard, other foremost global payment technology companies are American Express, Diners Club and Discover.

Q. What are the different types of credit cards?

Ans.

• Standard credit cards – These are plain credit cards with basic features with no or nominal annual fees.
• Specialized credit cards – These are credit cards that are designed to provide to specific needs of the cardholder. Such cards include credit cards that provide dining benefits, fuel cost savings, travel privileges and others.
• General Cards – These are the credit cards which have very basic features and relatively low annual fees. Ideally these are used for day to day use only.
• Reward Points Cards – Here with these cards, consumers/card holder are offered rewards points on each and every purchase. These points can be redeemed in lieu of freebies, gift vouchers and coupons.
• Cash-back Cards: When you use this type of credit card for purchases, a specific percentage of your expenditures are credited back to your account. These are the cards where consumers/card holders get a specific percentage of their expenditure credited back in their accounts. These cash back rewards may be credited back to your card account after every purchase or increasing cash back rewards adjusted against your card account periodically.

Q.How long does it take to apply for and receive a Credit Card?

Ans.The CVV Number (Card Verification Value) it is a 3 digit number mentioned on back side of your credit card on the right side of the signature panel. Also known as the CVV, this 3 digit number is an important part of the verification process especially in case of online transactions. The CVV number should not be disclosed to anyone.

Q. Am I eligible for a Credit Card?

Ans.Although the eligibility criteria for credit cards vary from one issuer to another, the following are a few generic criteria: :

• No less than 18 years old at the time
• Either salaried or self employed (Salary proof/ acknowledge ITR required)
• Have at least one savings account in an Indian Bank
• Have a valid Indian address
• Qualify the minimum income requirement set by the card issuer etc.

Q. How long does it take to apply for and receive a Credit Card?

Ans.You can apply for a credit card online in less than 2 minutes through Myfundbucket.com. After you have completed and submitted the online application, the respective card issuer will get in touch with you and ask you to submit the supporting documents. After receiving your application form, complete in all respects along with all the required documents, your application will be processed within two weeks by bank. Provided all your documents are in order, you will receive your new credit card within 7 working days, once your application is approved and all the checks have been completed by the bank. The bank will send you timely alerts on the credit card application status via SMS on the mobile number stated on your application form as well as through emails sent to the registered email address.

Q. What is a supplementary/add-on card?

Ans.A supplementary/add-on card refers to one or more credit cards that may be issued to family members of the primary card holder. Add on cards share the total credit limit of the primary card account and have the same features as the primary card. Any reward points earned through the add-on card(s) are credited to the primary card account.

Q. How many supplementary cards can I have and what are the charges involved?

Ans.Though this tends to vary from one credit card issuer to another, in most cases, you can apply for up to 3 supplementary cards for family members like your spouse, children, parents and siblings.

Q. What should I do if I lose my card or if my card is stolen?

Ans.In case you have lost your card or it has been stolen, the priority is to block the card and prevent unauthorized transactions. Please make a call the card issuer’s customer care number and inform them of the card loss/theft so that the card is blocked and the replacement card issue procedure is started.

Q. Do all credit cards charge an annual fee and joining fee?

Ans.No, not all cards charge an annual fee and/or a joining fee. In case of basic credit cards, there is usually no annual fee; however, cards that have an annual fee often offer more benefits than the zero annual fee cards.