A credit card also referred to as a credit facility is a financial product offered to customers by a bank with an account limit up to which the customer can borrow money. This one facilitates the customers to perform transactions on purchase of goods and services. Credit card can be availed easily but one must know about the eligibility criteria for getting the card.
- Age Criteria: First of all, for becoming the client, you need to meet some requirements that are as follows: Some banks have their minimum age requirement to being a customer set at 21 years of age. The maximum age requirement also varies and it is usually to the level of 60 years.
- Annual salary: Your BAD is defined by your annual income; hence it determines if one is eligible to apply for a certain card. The current official minimum needed in India to apply for credit card is around rupees three lakh per annum.
- Nationality or residential status: Anyone who is above the age of eighteen can apply whether they are citizen, a resident of the country or foreigner. Nevertheless, there are several such cards which are restricted to Indian citizens only.
Benefits of Credit Cards
- Easy access to credit: The greatest opportunity of card credit is therefore availability of credit.
- Building a line of credit: Credit cards give you the propensity to establish lines of credit.
- EMI facility: Ever think of purchasing a car or a washing machine and you do not wish to spend a lot of your savings, you can decide to charge it on your credit card as you wait for a more convenient time to pay the balance.
- Incentives and offers: As is often the case with a credit card, it comes with lots of promos and other things that encourage the use of this card.
- Flexible credit: Credit card provides certain no interest period, which is the time period during which credit utilized is not charged interest.
- Record of expenses: A credit card keeps every purchase conducted on the card and sends the list alongside your current credit card statement.
- Purchase protection: Credit cards also extend other measures of security in form of insurance whether the credit card purchases get damaged, lost or stolen.
