How credit card works in India?

Okay, it seems like you are new to the credit card world and could use some information to make wise decisions that won’t hurt in the long run. Count on me buddy, I can help you out coz I made mistakes and nobody learned a better lesson than I have. Let me take you through how credit card works in India and things you should know while using credit card.

Well, those endless spam calls for credit card sales made me give in one day and I applied for one. I had no idea how they worked except for the fact that I can use them to make transactions and pay for everything later. But what I forgot to take note was that not everything happens for free, there is a cost attached to it. We’ll get to that part later but for now you should check out how does a credit card work in India.

• You apply for one and then you get one.

• There is a certain limit you will be made aware of based on your income

• You can use credit card online and offline to make financial transactions

• For offline payments, the merchant will swipe your card and you’ll have to enter the secure pin. 

• For online payments, you will have to enter card details like number, CVV and OTP. 

• There will be a processing fee for each transaction which is notified by the credit card supplier to you already. Read the terms and conditions carefully.

• Don’t max out your limit, it will add to the charges, interest and hamper your credit score

• Don’t postpone credit card payments after the due date

• Try not to withdraw cash using credit card, there are heavy charges for such transactions

• You can use them in emergency situations

• You can avail cashback offers and rewards using credit cards

• It’s a safe bet

• You get grace period to make certain payments

• Your creditworthiness increases with wise usage of credit cards

I hope your question how credit card works in India is well answered now. Let me know if this helped you or if you want to add anything to it.

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