Credit cards are a thin rectangular piece of plastic or metal issued by banks or financial service companies, that allows cardholders to borrow money or funds with which they can pay for goods and services with merchants that accept credit cards for payment. Credit cards mandate cardholders to repay the borrowed funds or funds, plus any applicable interest and any other agreements. It is a financial instrument issued by the banks with a pre-set credit limit.
What credit cards are used in India?
There are different types of credit cards but the credit cards in India that are majorly used are Visa and Mastercard they are accepted widely in India — especially in the country’s major metropolitan cities, like New Delhi and Mumbai. Large establishments, hotels, restaurants, shops, and most online retailers accept credit cards, and some even accept American Express and Discover. There is a range of credit cards offered by different banks that offer many benefits at a nominal annual and joining fee. For example, HDFC Bank Moneyback credit card, etc
What is a good limit for credit cards in India?
The Normal Credit Card Limit is around 2.5 to 3 times of monthly gross salary.
- How many credit cards are there in India?
In the financial year 2021 in India, there are nearly 62 million credit cards. The cumulative number of cards increased continually in recent years and even recovered quickly from decreasing numbers during the lockdown from the end of March to the end of May 2020, instead of the first wave of coronavirus (COVID-19) pandemic.
- How to Use a Credit Card?
The following are some of the important tips on how to use credit cards in India:
- Use of the right credit card for the right purchase
If you have many credit cards in India, make sure that you are using the right one based on your needs. For instance, use a travel credit card if you spend part of your income on travel such as booking flight tickets, hotels, and more. This can help you to earn reward points which can be redeemed later on.
- Shop online using reward points
Credit cards in India offer 2x reward points when you purchase online.
- Pay the bills into EMIs by using credit cards
The best way to use credit cards is to convert your purchases into EMIs and repay the bills as per your benefit.
- Opting for a personal loan during emergencies
Credit card users are allowed by many lenders to convert their unutilized credit limits into personal loans at a nominal interest. This helps credit card users to meet their urgent needs in a limited amount of time.
- Redeem your reward points
Banks allow their credit card users to redeem their reward points to get an ample amount of discounts on hotel bookings, flight tickets, etc. These reward points provide special shopping vouchers, cashback, and recharge vouchers to credit card users.
- Credit Card Fraudulent Transactions
Fraudulent credit card transactions in India are very common. Through credit card skimming, phishing, and vishing, the information of your credit card can be stolen and used without your knowledge. If you receive some suspicious emails and calls you are required to be very. You have to report any fraudulent credit card transactions to your bank at least within two days of the event happening. Some banks have the facility of blocking credit cards in India online. We should always keep in mind that with the growing cases of cybercrimes, we need to be very careful as to where and to whom we give our credit card information.