Credit Cards
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Discover the Best Credit Card Options with Vagmi Fincorp!
Maximise the value of every purchase by selecting the perfect credit card through Vagmi Fincorp.
What is a Credit Card?
A credit card is one of the financial instruments carrying a pre-loaded balance that allows you to make purchases and pay for them later. The issuer of the card allows you to pay the balance in full without charging interest within up to 50 days from the date of payment. A minimum amount due can be paid by the cardholder so that no fine is imposed. This minimum amount is anywhere between 5% to 10% of the total amount due. The remaining balance will then be carried forward to the next month, and the interest levied by the credit card company will be applied.
Various Types of Credit Cards in India
Shopping Credit Cards – With rewards for every dollar that you spend on shopping. Great rewards in the forms of points or cash that can be redeemed as merchandise, travel, and much more.
LifeStyle Credit Cards – Satisfy the lifestyle wants and fulfil many needs. Reward points are generated for every swipe done. Shopping discounts and cash-back on retail spends.
Fuel Credit Cards – A Fuel Credit card is being provided by banks to customers in a bid to provide them with maximum benefits while purchasing fuel. Having this card enables those who constantly buy fuel for various purposes to lower their expenditure on fuel. Apart from that, it enables the users of Fuel Credit cards to use it for other benefits with regard to lifestyle.
Reward credit cards give you some kind of “reward”—usually cash back, points, or travel miles—for every dollar you spend, sometimes up to certain limits. Then, depending on the card, you can use your rewards in a variety of ways.
Travel Credit Cards – Travel credit card is one of the credit cards that offer exciting offers and deals related to travel. Most features and benefits offered by travel credit cards provide you savings on travel. From air ticket bookings to reward points accumulation, everything comes with a perk when done through travel credit card.
Features & Benefits of Credit Cards
The credit card industry is expanding globally as innovative players enter the market with new and advanced features. Here’s a look at the basic features.
Credit Limit: Credit limit is the maximum credit amount you can avail from your credit card at a particular point in time. You will be subjected to a fee on overspending the provided credit limit. Credit limits are dynamic and keep changing every month considering the purchase and payment history of the individual.
Balance: The total of money you owe on your credit card account, which consists of purchases, finance charges and fees. You can usually access it online or by calling the customer service telephone number.
Credit Card Eligibility
Credit card eligibility is the requirements that a person must meet to be eligible for a credit card from a particular lending institution. Requirements are typically different for different issuers of credit cards but normally include:
Age : Most credit card issuers require applicants to be at least age 18. Some may have an even higher age requirement.
Income – Income level is often assured for minimum income, as any borrower would have to cover debt by paying back what was borrowed.
Credit Score – A good score would increase the chances to have the credit card qualified as applicants with good historical responsible behavior are likely eligible to obtain a credit card that may be more favorable as to its terms.
Residential Status : According to the issuer, you may need to furnish evidence of residence or address in a place of current dwelling.
Please note that mere eligibility does not automatically award approval for a credit card. The creditor based on its own judgment may decline or accept your application and consideration. What’s more, the eligibility criteria and benefits differ for different credit cards, so study the terms and conditions of the credit card you want before applying for it.
Documents Required for Obtaining Credit Card
These documents will be different for every organisation providing you with a credit card. However, below are the common ones and most you would have usually required for a credit card.
Identity Proof : You have to produce any kind of document showing identity proof, like Aadhaar Card, PAN card, Driver’s License, Passport, or Voter’s ID.
Address Proof: Electricity bill, Telephone bill, Aadhaar Card, and any other valid proof of your residential address.
Annual ITR (Self-Employed): If you are self-employed or have some other source of income, it may be required to present your annual Income Tax Returns (ITR) for proof of your financial standing.
Recent salary slips: In the case of a salaried person, recent salary slips can be presented as proof to support income and repayment capabilities.