Credit cards offer a plethora of features and benefits that cater to diverse financial needs. Understanding these credit card features can help you make the most of your credit card and manage your finances effectively. In this article, we will explore the key features and benefits of credit cards in detail.
Cash Back
Cash back is one of the most attractive features of credit cards. It allows cardholders to earn a percentage of their spending as cash rewards. This can be especially beneficial for everyday purchases such as groceries, dining, and fuel. Some cards offer higher cash back rates for specific categories or during promotional periods.
Credit Limit
The credit limit is the maximum amount you can borrow using your credit card. This limit is determined by the card issuer based on your creditworthiness, income, and other financial factors. Managing your credit limit wisely is crucial to avoid overspending and maintaining a good credit score.
EMI Conversion
Many credit cards offer the option to convert large purchases into Equated Monthly Installments (EMIs). This feature allows you to repay big-ticket items in smaller, manageable payments over a specified period, often at lower interest rates. EMI conversion is ideal for expensive purchases like electronics, appliances, or travel.
Insurance
Credit cards often come with various insurance benefits. These can include travel insurance, purchase protection, and extended warranty coverage. Travel insurance can cover trip cancellations, lost luggage, and medical emergencies, while purchase protection insures your purchases against theft or damage.
Interest Rate
The interest rate, or Annual Percentage Rate (APR), is the cost of borrowing on your credit card. Understanding the APR is essential as it affects the total cost of carrying a balance. Cards may have different APRs for purchases, balance transfers, and cash advances.
Introductory APR
Many credit cards offer an introductory APR, which is a lower interest rate for a specified period, often 0% for the first 6 to 18 months. This can be beneficial for balance transfers or large purchases, as it allows you to pay down the balance without accruing interest.
Rewards
Credit cards often come with rewards programs that allow you to earn points, miles, or cash back on your spending. These rewards can be redeemed for travel, merchandise, gift cards, or statement credits. Different cards offer different types of rewards, so choose one that aligns with your spending habits and preferences.
Cash Advances
Cash advances allow you to withdraw cash from your credit card up to a certain limit. However, cash advances usually come with high fees and interest rates, and interest begins to accrue immediately. It’s advisable to use this feature only in emergencies.
Charges
Credit cards may come with various charges such as annual fees, late payment fees, foreign transaction fees, and balance transfer fees. It’s important to be aware of these charges and factor them into your decision when choosing a credit card.
Contactless Payments
Contactless payments enable you to make quick and secure transactions by simply tapping your card on a compatible terminal. This feature is convenient for small, everyday purchases and reduces the need to carry cash.
Credit Score
Using a credit card responsibly can help build and improve your credit score. Timely payments, keeping balances low, and not maxing out your credit limit are key factors in maintaining a healthy credit score. A good credit score opens up opportunities for better credit products and lower interest rates.
Easy Access Channel
Credit cards provide easy access to credit through various channels such as online banking, mobile apps, ATMs, and customer service. This accessibility ensures that you can manage your account, make payments, and track your spending conveniently.
Encash
Some credit cards offer an encash facility, allowing you to withdraw a portion of your credit limit as a direct transfer to your bank account. This feature can be useful for managing unexpected expenses or cash flow issues.
Expense Tracker
Many credit cards come with an expense tracker tool that helps you monitor your spending. This feature categorizes your transactions and provides insights into your spending patterns, aiding in better financial management.
Flexible Credit
Credit cards offer flexible credit, allowing you to borrow as needed up to your credit limit. This flexibility is useful for managing short-term cash flow needs without the need for a loan application process.
Offers
Credit card issuers frequently provide offers and discounts on various products and services. These offers can include discounts on dining, shopping, travel bookings, and more. Keeping an eye on these offers can lead to significant savings.
Personal Loan on Credit Card
Some credit cards offer the option to take a personal loan against your credit limit. This can be a quick way to access funds for emergencies or large expenses without needing to apply for a separate loan.
Purchase Protection
Purchase protection covers items bought with your credit card against theft, loss, or damage for a specific period after the purchase. This feature adds an extra layer of security for your significant purchases.
Regularly Check Account Statements
It’s important to regularly check your account statements to ensure there are no unauthorized transactions and to keep track of your spending. Reviewing your statements can also help you spot any errors and avoid potential fraud.
Utility Bill Payments
Credit cards can be used for utility bill payments, making it convenient to manage recurring expenses like electricity, water, and internet bills. Some cards even offer rewards or cash back on utility payments.
Learn about How Does a Credit Cards Work?
Credit Card Features in Hindi – क्रेडिट कार्ड की विशेषता क्या है?
क्रेडिट कार्ड विभिन्न सुविधाएँ और लाभ प्रदान करते हैं जो आपकी वित्तीय आवश्यकताओं को पूरा करते हैं। यहां कुछ प्रमुख विशेषताएँ और लाभ हैं:
- कैश बैक: खर्च पर कैश बैक रिवार्ड्स प्राप्त करें।
- क्रेडिट लिमिट: उधार लेने की अधिकतम सीमा।
- EMI कनवर्ज़न: बड़े खर्चों को छोटे मासिक किस्तों में बदलें।
- बीमा: यात्रा बीमा, खरीद सुरक्षा और विस्तारित वारंटी।
- ब्याज दर: उधार लेने की लागत।
- इंट्रोडक्टरी APR: आरंभिक अवधि के लिए कम ब्याज दर।
- रिवार्ड्स: पॉइंट्स, माइल्स या कैश बैक अर्जित करें।
- कैश एडवांस: क्रेडिट कार्ड से नकद निकासी।
- शुल्क: वार्षिक शुल्क, विलंब शुल्क आदि।
- कॉन्टैक्टलेस पेमेंट्स: टैप करके सुरक्षित भुगतान करें।
- क्रेडिट स्कोर: जिम्मेदारी से उपयोग करने पर क्रेडिट स्कोर में सुधार।
- ईज़ी एक्सेस चैनल: विभिन्न चैनलों के माध्यम से क्रेडिट तक आसान पहुंच।
- एन्कैश: बैंक खाते में सीधे धनराशि स्थानांतरण।
- व्यय ट्रैकर: आपके खर्च की निगरानी करने के लिए टूल।
- लचीला क्रेडिट: आवश्यकता अनुसार उधार लें।
- ऑफर्स: विभिन्न उत्पादों और सेवाओं पर छूट।
- क्रेडिट कार्ड पर व्यक्तिगत ऋण: क्रेडिट लिमिट के खिलाफ व्यक्तिगत ऋण।
- खरीद सुरक्षा: चोरी, हानि या क्षति से सुरक्षा।
- खाते के विवरण की नियमित जांच: अनधिकृत लेन-देन से बचाव।
- यूटिलिटी बिल भुगतान: उपयोगिता बिलों का भुगतान करें।
Credit cards are powerful financial tools that, when used responsibly, can provide numerous benefits and help you manage your finances effectively. Choose the right card based on your needs and take advantage of the features and benefits offered.