Perhaps today, there will only be a handful of people who don’t know what a credit card is. Moreover majority of the crowd in India have used a credit card and own at least one today!
Today you can apply online credit cards in just few clicks. You can choose and compare credit cards from many major Banks in India. If you research well, you can also get the best credit cards available. But that’s not all. We feel that as a card holder, you must also understand the different terms associated with cards.
Knowing these terms can help you better in researching and finalizing the best credit card that suits all your needs.
- Grace period:
The 1st term you must be clear about is “Grace Period”. This period is a time frame that’s given by your bank so you can pay off all your monthly dues. In the event that you don’t do so, the bank can be obligated to incur charges for late payment.
In general this grace period is of 21 days. Don’t worry about your due date as it’s the same for every month and will never be changed by the bank. In Banking terms, the time between the statement closing date and the payment due date when you can pay your statement balance in full is known as the grace period.
- Credit limit:
The 2nd term which you must know is Credit limit. There are multiple types of credit cards that are being offered by banks as per the needs of customers and their credit score. But you must also know that every credit card has its own limit. In Banking terms, the maximum amount that you can spend on your credit card is known as credit limit.
- Cash advance:
The 3rd term you must understand is Cash Advance. With your Credit card you can purchase goods and services even though you don’t have enough balance in your bank account. That’s one of the main differences a credit card has with a debit card. They also have one similarity i.e. you can withdraw money using your credit card. In Banking terms, this feature of the credit card is known as cash advance.
Finally, the 4th term is APR. When you use a credit card, you basically are borrowing money from bank. Banks will lend you funds but for this service you will be charged a specific interest rate. Banks describe interest rate for credit card as yearly rates. This yearly interest rate will be charged by bank on any of your unpaid credit card balances. In Banking terms, this interest rate is called as Annual Percentage Rate (APR).
Understand these terms, always pay your bills on time and apply for the best credit cards via Ruloans – https://www.ruloans.com/credit-card.htm