A credit card allows the cardholder to borrow money from the bank and purchase the goods and services. However later on the borrower has to repay the money to the bank at the end of every month. The grace period is provided by the bank to its customer. The grace period is generally for 20 to 30 days. A credit card enables the borrower to make a large purchase and pay for that later on. Instead of carrying the cash, it is more convenient to carry the credit card.

Features of credit card

Features of the credit card differ from bank to bank and card to card. However, the bank offers amazing features on the credit card provided by them.

Accepted Globally

In today’s scenario, the credit cards are globally accepted and also by various merchants all over the world. It has become the fastest mode of payment.

Loans on credit card

The credit card also offers pre-approved at low-interest rates to the cardholder. The cardholder can also take the loan against his credit card limit to meet the financial needs. Even some banks also provide personal loans on credit cards.

Credit card bill payment

Credit cardholders can pay their bill online or offline. Cardholder use various modes to pay their bill

  • NEFT
  • Internet Banking
  • Cheque
  • Cash, etc.

Cash withdrawal facility

With the credit card, the cardholder can withdraw money from ATM. For this facility, the bank charges the fees and allows the cardholder to withdraw the money from anywhere in the world.

Phone banking service

Bank offers phone banking services to credit cardholders. Also, the banks have their own helpline number for their credit cardholders.

Balance transfer

Credit cardholders can transfer the outstanding balance to the credit card of another account. The various offer of transferring the balance are available with the cardholder. It also allows the holder to repay the amount within the tenure of their choice.


At the end of every billing cycle provide an e-statement to their cardholder. The cardholder can access this statement anytime online.

Lost card liability

Lost card liability protects the cardholder from the fraudulent transaction if they lost their card somewhere. Bank also offers lost card liability coverage to the credit cardholder.

Insurance coverage

On certain credit cards bank offers insurance protection like life insurance, travel insurance, etc.

Annual fees

To renew the card, every cardholder has to pay a fixed amount which is called an annual fee or renewal fee. However, the amount varies from card to card.

Credit Card Fees

Card Name Annual fees
Indian Oil Citi Platinum Credit Card The annual fee will be INR 1,000 if the annual expenditure is not more than 30,000
Yatra SBI credit card INR 499
Citibank Cashback Credit Card INR 500
SBI Simply Click Credit Card INR 499
SBI Signature Credit Card INR 4,999
Amex gold card INR 3,500

Credit Card numbers

  • 16 digit number is available on every credit card
    • The first digit signifies the system
      • 3 stands for travel or entertainment
      • 4 stands for visa card
      • 5 stands for master card
      • 6 stands for discover card
    • The third and fourth digit specifies the type and currency
    • The fifth to the eleventh digit is the card number within the account.
    • The 15th digit is the check digit

Benefits of a credit card

  • Air Miles
  • Exclusive privileges
  • Travel benefits
  • Cashback benefits
  • Rewards
  • Fuel Surcharge Waiver
  • Welcome gift
  • Lifestyle benefits
  • Airport Lounge Access
  • Add-on cards

How to use a credit card?

  • Bank creates a revolving account for every credit card.
  • After receiving the card the cardholder can use that card to make a payment on credit.
  • This credit is the amount that is borrowed from the bank and the cardholder is bound to pay that amount to the bank at the end of the month.
  • To make the payment, the cardholder has to swipe the card on the machine.
  • The cardholder has to enter the PIN to authenticate the transaction.
  • Furthermore, in the checkout section enter your credit card details.
  • Authenticate the payment by entering the OPT.

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