A recorded number of 141.3 million POS transactions via credit cards in February 2019 show the increasing use of these cards across India. There has been an increase in the use of credit cards for a few years now, especially owing to the introduction of different features and benefits with these cards.
Catering to different life essentials and expenses, they have varied rates of interests depending on basic and tertiary features provided on them which allow users to effectively reduce their expenses.
- Rs. 48,489 Crore was spent through credit cards while only Rs. 45,604 Crore was transacted using debit cards via POS terminals till February 2019.
- A recorded 28.8% growth in credit card usage while that of debit card was just 22.8%.
- December 2018 recorded a loss of 34.4 million debit card users while the number of credit card users has increased by 0.98 million.
There are different types of credit cards, some of which are listed underneath. Some of these credit cards are all-in-one while others have distinct features which make specific types of expenses convenient.
- Classic: The oldest and most basic of all credit cards, these offer a line of credit to make purchases or other transactions. They have variants with much higher credit limits too.
- Balance transfer: These cards allow a customer to transfer their existing debt on one card to another, thereby buying time for repayment.
- Fuel: While considering how to combat fuel prices with a credit card, fuel credit cards are the best option with discounts on fuel purchase and further fuel related benefits on reward points.
- Entertainment and lifestyle: While the former especially caters to movie shows, theatres, and other events; the latter caters to shopping, dining and travelling expenses.
- Travel: These are credit cards which completely focus on different expenses related to travelling like flight tickets, hotel charges, etc.
- Secured: These types of credit cards are granted by NBFCs against fixed deposits, thereby ensuring there is no default on repayment.
- Student: Created for students without income, these have low credit amounts which allow students to cater to all minor but continuous expenses related to their academics.
Credit card interest rates you should know about
With different types of cards, the vital question of credit card interest rates comes up too. Importantly though there are numerous NBFCs with their own interest rate structures, there are only two basic interests which are levied on credit card bills. The following discusses these two types of interest rates which a credit card can be subject to.
- On outstanding credit: Most common interests customers have to pay on their credit cards is that of outstanding debt. Levied on all credit cards, this happens when a customer does not repay their credit debt on time.
- EMI repayments: Often NBFCs offer the option for customers to make a high value purchase with their credit card and then slowly repay the debt in EMIs with interests on them. For such instances, customers should know how to reduce their credit card interest and save money by options of prepayment, balance transfer, etc.
With credit card interest rates and late fines being levied on bill repayments, it is vital that customers do not miss their due date. In case of inflated bill amounts on their Bajaj Finserv RBL Bank SuperCard or any type of credit card, customers should at least try to repay the minimum due so that they can avoid the extra interest. NBFCs provide numerous online repayment options along with offline ones so that customers can clear their bills with ease.
Over the years, financial institutions have started looking for the convenience of their customers. Even in terms of application procedure, financial institutions like Bajaj Finserv even bring you pre-approved offers that make availing creditcards quick and easy. Pre-approved offers are available on numerous financial products like credit cards, home loans, personal loans, business loans, etc. You can check out your pre-approved offer by providing your name and phone number.
Easy application and convenient repayment options along with their numerous features have made credit cards an indispensable financial tool for many. With different types of added features and benefits offered by financial institutions, customers must choose their type of credit card cautiously. This ensures immense reduction in overall expenditure. Additionally, they must also be cautious not to subject themselves to unnecessary interests by late repayment.