Credit Cards
Credit Cards
Credit Cards
Amit Adeshara
260128
WHAT IS CREDIT CARD…?
Any card that may be used repeatedly to borrow money or buy products and services
on credit .
Normally we know Credit cards as Plastic money...!
A credit card is a way of payment by using the plastic cards which are
issued to customers for their payment. Credit cards are different than the debit cards.
It is because using the facility of credit finance it does not remove or decrease the
balance of the amount of account holder from his account.
Credit Cards gives you a smart way to shop, and offer you flexibility and
convenience in managing your finances.
Credit cards provide a host of exciting offers and benefits such as low interest rates,
rewards programs, and a high credit and cash limit.
SERVICE PROVIDERS IN INDIA
Major Credit Card Providers in India
ABN Amro
HDFC
American Express
ICICI Bank
Axis Bank
SBI
Bank of Baroda
Canara Bank
Citibank
Visa
HSBC
MasterCard
Deutsche Bank
Amex
Barclays Bank
Diners Club
Standard Chartered
Kotak Mahindra
TYPES OF CREDIT CARDS
Major India Credit Card Types
Following are various types of credit cards available in India:
Out of the 16 numbers on a typical credit card, the set of first 6 digits is
known as the issuer identifier number (read this for details), and the last
digit is known as the “check digit” which is generated in such a way as to
satisfy a certain condition
INTEREST RATE & GRACE
PERIOD
Interest Rate : The interest rates are very
high on a credit card purchase - in India its
between 1.9% to 2.5% monthly.
Grace Period :- Also called the interest free
period, during which the balances on credit
card do not attract finance charges provided
the credit card holder repays the entire
outstanding amount in full with the monthly
credit card bill.
-The grace period varies with every credit
card and usually is between 20 to 60 days
EXAMPLE OF BILLING CYCLE
The HDFC Bank Platinum Plus Card has an
interest-free Credit Period of 55 days.
A credit card holder whose billing date falls
on 4th of the month can spend on his credit
card from 5th April to 4th May, his bill will
be generated on 4th May and his Payment
Due Date will be 29th May.
A purchase made on 14th April will have a
credit period of 46 days, while a purchase
made on 2nd May will have a credit period of
23 days.
HOW INTEREST ON CREDIT
CARDS IS CALCULATED?
If a credit card holder doesn't pay his bill completely
before the due date, his entire outstanding balance
will attract interest rate and all new spends on the
credit card will also attract interest rate until the
balances are repaid in full.