A credit card is simply a small rectangular piece of plastic that gives the bearer the freedom to transact without using cash. It is one of the most secure forms of advance payment offered by banks and other financial institutions. A credit card is offered by banks and most financial institutions with a pre-approved credit limit with which one can either make cashless transactions or borrow cash up to the credit limit. The credit limit may depend upon a number of factors such as the credit history of the customer, sources of income, repayment capacity, etc.
One can get a credit card with a savings account easily if he has a good banking record. If he transacts in his savings account regularly while maintaining a steady or increasing balance, it should pose no difficulty in obtaining a credit card. Simply visiting the nearest branch of the bank in which he holds a savings account should do the job. In case one does not have the time to do so, just visiting the bank’s website can help in applying for one online. Most banks would have no problems giving their existing customers a credit card if their past record with them has been good.
A credit card has several benefits, the primary being convenience. One can make purchases beyond his or her immediately available finances without any need to carry cash. One does not need to be constantly aware of the balance remaining in his savings account as when using a debit or ATM card.
A credit card can also be a source of short term loans from the credit balance. It can be utilised interest free if paid back in the grace period offered by most banks and credit institutions. The grace period is usually in the range of 30-45 days but a few exclusive customers might be given extended grace periods as well.
Most credit cards also offer better protection against frauds than debit or ATM cards. Fraudulent transactions and transactions on lost cards are covered too. Some also offer additional life cover, cover on fraudulent transactions, reward points, and sometimes even some great offers on spends on the card. These reward points can be used at several establishments for exclusive discounts or at lounges for exclusive privileges.
A few banks also offer other additional benefits for their credit card holders. One can get exclusive offers while travelling or dining at restaurants or even while shopping. One can make automated payments for utility bills, make use of overdraft facility and for some really exclusive customers, entry into privileged lounges and priority passes to special events.
A credit card is an amazing thing to have if one can use it effectively without falling into an endless debt trap. So, make the most of it and revel in the power of cashless transactions each time.
It is true that a debit card performs almost the same functions as the Credit Cards. But where can we get the freedom to shop and borrow cash completely interest-free? And with banks ready to offer Credit Cards with savings accounts, it is only smart that we make good use of it.
