What are credit cards' features, advantages, and eligibility conditions?

by Ajay Singh Financial Advisor

A credit card comes with a revolving credit limit, which means that upon paying the bills, it can be used for further purposes. It is a digital payment option that comes with a fixed credit limit that can be used for flexible purposes. If you are looking for a credit card, make sure you are aware of the features, advantages, and eligibility criteria.

Eligibility criteria to get a credit card

● In order to get a credit card with a high credit limit, you need to make sure that you are fulfilling the online credit score requirement, which is above 750. A credit card is an unsecured form of loan; therefore, banks and non-banking financial institutions are very particular when it comes to the eligibility criteria for offering a credit card with a fixed credit limit. A good credit report is an important prerequisite that an individual needs to meet in order to get a credit card with a high credit limit.

● A credit card holder needs to have a fixed income, whether it be a salaried or self-employed individual. This is why when you start working, you often get credit card offers from various banks and non-banking financial institutions, especially when you open a salary account. Banks and non-banking financial institutions leverage the opportunity to offer credit cards to individuals with a good amount of income every month. Therefore, if you want a credit card with good offers and a high credit limit, it is important that you meet the eligibility requirements in terms of income.

● If you have a credit utilisation ratio from previous loans or credit cards, you have any, it will be important to get a new credit card. Therefore, if you have exhausted the credit limit on your past credit card payments, it is important that you maintain a balance in order to get a new credit card. A bad credit history in the past will stop a bank or a non-banking financial institution from offering your credit card. However, even if you get a new credit card offer, the rate of interest will be very high and the credit limit will be low unless you are able to meet the eligibility requirements with the help of a clean track record. For Business Loan visit : business loan apply online.

Advantages to using a credit card

● A credit card is a flexible form of loan that can be used for various kinds of needs and emergencies without any end-usage restriction. This means that when you have a credit card, an individual can use the credit card to make purchases when there is a problem with funds and cash. It is easy to make cashless payments for anything because there is no particular end-usage criteria when it comes to a credit card.

● A credit card is meant for small expenses within the credit limit that is offered to you. According to the credit limit that has been offered, you can exhaust the entire credit limit when there is an emergency or you need to make a purchase. However, make sure that you are paying bills on time to maintain a good credit utilisation ratio.

● A credit card comes with a revolving credit limit, which means that upon paying the bills, you will get back the available credit limit, which can be used further. It is not a one-time loan payment and you get back the credit limit when you keep on paying the bills monthly.

Features of credit cards

● It is a digital payment card that is completely cashless. Individuals can use a credit card to make both online and offline purchases.

● A credit card comes with a fixed credit limit within which the individual can make any kind of purchase.

● A credit card comes with various offers and discounts, which make various expenses affordable. A credit card offers discounts, coupons, and cash back rewards that can be redeemed for cash or coupons.

Wrapping up

If you want a credit card, you need to make sure that your online credit score is greater than 750. Keep track of your credit report so that you are eligible to explore the various offers and discounts given on a credit card.

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