Rs.5000 Income: Credit Card @2% Interest from Syndicate Bank for Poor Earners

Credit is needed by almost everyone especially at the time of need. And such individuals either meet their requirement from their own savings, ask their friends/relatives, or take financing from lenders such as banks, private money lenders, peer to peer lending companies, and others.

However there is one financial product known as “credit card” loved by people across the world. And the main reason for its attraction is the free money which the card issuer (mostly banks) provides every month and time frame to pay back the credit used. In fact, it is the widely accepted payment method worldwide and you can buy whatever you want. Be it – expensive clothing, jewelry, etc.

But there is a myth amongst people especially low income group individuals that credit cards are offered only to high income earning people. And this myth is false. There are many banks in India requiring very minimum income for the credit card.

Syndicate bank offers 3 credit cards for low income earners having income less than Rs. 10,000 per month. For income less than Rs. 15,000 per month there are 4 credit cards.

Here is the table showing list of such cards and the minimum income required:

Sr. NoCredit Card NameMinimum Annual Income RequiredEquivalent Minimum Monthly Income
1Classic for SalariedRs. 60,000Rs. 5,000
2Classic for Senior CitizenRs. 60,000Rs. 5,000
3Classic for Self EmployedRs. 1,00,000Rs. 8,333
4Gold for SalariedRs. 1,50,000Rs. 12,500
5Gold for Self EmployedRs. 2,00,000Rs. 16,666

Features of Credit Card

  • Since the product is targeted towards low income earning individuals, there is no annual fee or joining fee.
  • For a security point of view, card has photo of the owner.
  • Interest charged is just 2% per month.
  • Minimum free credit period is 20 days and maximum is 50 days.
  • Card owner can get a supplementary card (also called as add-on card) for his/her family member. Add-on cards is one of the best way to build credit history for a beginner (especially housewife, student, and others). And most importantly there is no credit history check for the secondary card owner. However such cards are issued only when primary card owner has good repayment history and has used the card satisfactorily i.e. within the credit limit, no payment default, has done full repayment before the due date and so on.
  • Like other credit cards in the market, these cards can also be used for cash withdrawal at ATMs and online/offline purchases. But remember that using the card for withdrawing money from ATM carries a charge and also affects credit score. So try to stay away from frequent withdrawals, as it indicates being credit hungry.
  • Non-Resident Indians and Persons of Indian Origin are also eligible for this card provided they hold account with the bank.

Check out credit card for NRI.

Documents Required

  • For Salaried – computerized pay slip, salary certificate, form 16 and IT return acknowledgement form
  • For Self Employed or Businessmen –  Form 16 A, IT return, Form No. 10 CCAC
  • For Senior Citizens – They have to be pensioners of the bank.

In addition to credit cards, Syndicate bank offers various types of personal loan for low income earning individuals. The table below shows two loan products along with the minimum income required:

Sr. NoName of Loan ProductPurposeAnnual Income RequiredEquivalent Monthly Income
1Synd VahanPurchase of New Two WheelerRs. 50,000Rs. 4,166
2Synd KuteerPurchase and construction of residential plot, buying new or old dwelling units, Construction of house on already owned site/plotRs. 1,00,000Rs. 8,333

There are many other personal loan products offered by Syndicate bank but minimum income requirement is not available as follows:

  1. Synd Senior – For pensioners from government establishments who pension is routed through Syndicate bank. Minimum loan amount provided is Rs. 50,000. For such quantum of loan, the income required is typically low.
  2. Synd Swarna – For any genuine credit requirement for salaried and non-salaried person. Applicant can get minimum loan amount of Rs. 10,000. Since it is a gold loan, applicant has to deposit gold or gold ornaments as a security with the bank. Interest rate on secured personal loan are low compared to traditional personal loan without security.
  3. Synd Connect – This is for employees of government/public sector unit and, blue chip companies. 15 times of gross salary, loan amount is provided.

 

Vijaya Bank: Credit Card for Low Income (Rs. 4,167) Earners

Post demonetization, usage of digital payment methods has increased tremendously in India and hopefully citizens help making India a “less-cash” society. Digital payments include net banking, mobile wallets, debit cards, credit card and others.

Of these options, credit card is most sought payment method used. This is due to multiple reasons as follows:

  1. Card owner gets free money (called as credit) to use every month.
  2. There is a time frame (usually 20 days) given to make the repayment each month after the monthly bill is generated.
  3. Merchants offer rewards and cash backs on the card usage.
  4. Most importantly, it helps in building credit score and many others.

However the minimum income eligibility criteria for credit card keeps it out of reach of individuals earning low income. The reason is the repayment capacity. Non-payment of the credit is loss making for the issuer.

This is the reason, most of the banks in India, prefer giving credit cards to individuals earning high income. However there are many banks in India providing credit cards to low income earners (working or self-employed). And Vijaya bank is one such bank. The minimum salary/income asked by Vijaya bank are actually lowest and poor income earning individuals can easily apply and get approved.

Credit Cards from Vijaya Bank for Low Income Individuals

Vijaya Bank offers 3 credit cards – Visa Classic, Visa Global and RuPay. The card can also be taken against fixed deposit. Having a credit card against the fixed deposit offers many benefits and most important one being the credit history of the applicant is not checked.

Here is the table showing credit card along with the minimum income required:

Sr. NoCredit Card NameMinimum Annual Income RequiredEquivalent Minimum Monthly Income
1Visa Classic for Self EmployedRs. 50,000Rs. 4,167
2Visa Classic for SalariedRs. 60,000Rs. 5,000
3Visa Global for Self EmployedRs. 1,00,000Rs. 8,333
4Visa Global for SalariedRs. 1,20,000Rs. 10,000
5Vijay RuPay Credit CardNANA

But remember that income is the most important criteria for any type of credit approval (loan or credit card). But it is not the only criteria. In addition to the income; banks also check for employer, city you live in, your credit score, document proof. Salary slip is required for working professional and income tax return statement for self-employed. Depending on the case, bank may ask for additional documents as well.

Features of Credit Card

  • Cards from Vijaya bank are highly secured and chip enabled and offered to the account holders of the bank.
  • Cards are accepted by both national and international merchants and can be used for almost any type of payment.
  • Can be used outside of India as well.
  • Card user is protected through insurance for any fraudulent use.
  • Upon successful usage of card by the primary card holder, add-on card is also offered.

The above listed are just the few features. For more features and benefits of the card, you may visit their website: https://www.vijayabank.com/

Card Support

For more details on credit card, you many reach following:

Toll Free Number: 1800 425 5885 / 1800 425 9992 / 1800 425 4066
E-Mail: [email protected]

Canara Bank: Credit Card, Loan for Low Income (Rs 8,333) Earners

Amongst many banks owned by Indian government, Canara Bank is one of them. The bank has been in existence for over 100 years and was founded in the year 1906.

They have various financial products catered to the common people such as personal loan, vehicle loan, credit card, etc. However there is often a myth that financial products are targeted for high to medium ranged income earners. Of course, the primary target of any bank is such category of individuals only due to their high repayment capacity since the income is good.

But this does not mean that poor earners are not eligible for much needed financial products especially personal loan. In fact, these categories of individuals are in need of money more. And products such as credit card and personal loan are the only solution to their problem.

Canara bank has many retail products having a very low income eligibility criteria.

Listed in the table below are the credit cards and personal loan from Canara Bank along with their minimum income criteria.

Sr. NoCredit Card NameMinimum Annual Income Required (in Rs.)Equivalent Minimum Monthly Income (in Rs.)
1Canara Visa Classic1,00,0008,333
2Canara MasterCard Standard1,00,0008,333
3Canara Global Gold2,00,00016,667
Sr. NoName of Loan ProductPurposeMinimum Net Take Home Salary (Monthly) after installment
1BudgetPersonal or domestic need10,000
2Pension - General PublicMedical expenses and other genuine personal needsMust be a pension drawer from Canara Bank
3Teachers LoanPersonal or domestic need10,000
4Swarna Loan (Gold Loan)Medical expenses and any other contigencyDepends on the value and quality of the gold ornaments
5Canara CashInstant CashDepends on the value of the shares
6Consumer LoanPurchase of consumer durable items6,000
7Home ImprovementFurnish house/flat2,000
8Home ImprovementFurnish house/flatMinimum annual income of Rs. 50,000 (for self employed i.e. non-salaried)

There are many benefits of owning a credit card as follows:

  1. Helps in building credit history especially for the beginners. In fact, credit card and loan are the only options to build credit history. Debit card or a normal bank account will never help in building a credit history. Not having a credit history has its own negatives. Most importantly, a person with no credit score has higher chance of credit application rejection. This is because, lender has no way to evaluate credit worthiness of such applicants.
  2. A good credit score further helps in getting loan at a lower interest or increase credit limit in the future at no extra charge.
  3. Convenience offered by cards are many since it is accepted by most of the merchants today.
  4. Rewards and cash backs received help in saving money.
  5. They come with high level of security which is not possible in case of cash.
  6. Many cards come with insurance as well. Although there are insurance for low income earners in India, having additional insurance does no harm and that too with no premium to be paid.
  7. There is a 20 days (or more) grace period offered to make the repayment. So especially poor salaried or self-employed individuals have sufficient time to make repayment.

But remember that income (high or low) is just one of the factor (but the most important one) taken into consideration by the lenders. Even if your income meets the eligibility criteria, there is always a possibility of credit application rejection either because of poor or no credit score, insufficient or fake documentation such as salary slip or IT return, company where you work for, city you live in, and so on. It’s upto the bank to decide whether credit card or personal loan application should be approved or denied.

Despite of carrying highest interest rate (but less than a credit card) since it is mostly a unsecured loan, personal loan also has many benefits as follows:

  1. Is the second option to meet emergency money requirement after the credit card. Of course you can ask your friends/relatives for money at the time of need. But if all options fail, personal loan is the only solution left.
  2. Money is disbursed in a speedy manner.
  3. Can be used for almost any purpose such as medical expenses, house improvement, buying a vehicle and so on.
  4. As mentioned above, helps in building credit score.
  5. There is no mandatory requirement of collateral. Although you can also get a secured personal loan by pledging property, shares, gold, LIC policy, mutual fund and few others. This type of secured personal loan has low interest rate compared to traditional loan.
  6. Very minimal documents are required compared to other types of loan e.g. home loan.

Irrespective of the credit taken, make a habit of making complete payment before the due date. Never utilize your credit limit fully, and use it wisely and do not let lender know that you are credit hungry.

Credit Card Insurance: Types, Making It Valid & more

The benefits and features offered by credit card are many and insurance cover is one of them. However many of the card users are unaware of the conditions under which they operate. When you buy a card, you get different types of insurance at the same time, some of them at an additional cost and others as part of the card services included in the annual fee.

In many cases, insurance benefits are included as part of the basic features such as travel cards that highlight protection abroad. In others, the benefits and conditions for validating the insurance are found in the contract, however, customers do not pay due attention to them. This causes the conditions to be unknown and in many cases a benefit that is already part of the credit card is missed.

What types of credit card insurance are there?

Each credit card offers different insurance policy. This depends on the profile of each user and the needs they consider indispensable for this. The insurance cover typically appearing with credit cards are as follows.

  • Insurance against theft, loss or cloning of cards: Prevents the cardholder from paying unrealized charges for any of the above reasons. At the same time it protects against misuse of banking information.
  • ATM Theft Protection: Covers losses around the ATM, before, during, or after a transaction.
  • Protected purchase insurance: It is used for purchase of long-life items. It covers the loss of products purchased with the card.
  • Travel medical and accident insurance: Protects the cardholder, spouse and minor children from unforeseen events that may arise while they are out of the country.
  • Baggage loss or delay insurance: Luggage cover for flights paid for with the card.
  • Car rental insurance: It works when card user is travelling and is applicable when the car rental was paid for with the card.

Depending on the type of card you have, it will be the insurance coverage you have. As an example, classic cards often offer services that protect the customer from theft or loss, while travel cards focus more on services outside the country. If you are not sure what your card includes, contact your bank.

How to make credit card insurance valid?

Each bank/card issuer establishes the conditions under which it will make the insurance valid. It is important to be clear about the requirements for applying. It is frequent that the client wants to make his insurance effective but does not know the mechanisms to make it effective.

The reasons for this are as follows:

No compliance with documentation

To make insurance valid, the bank sets conditions. Among them are the documents that allow validating the application of the insurance. If the documents are not in order, the petition does not proceed and the benefit is lost.

Unaware of the procedures

This can be from the way it should be requested or the frequency with which it is allowed to be used. In many cases the insurance works on limited occasions and if the user requests it more than once it will be rejected. Also, if any steps in the process is skipped there is a higher chance of losing the right.

Not Claiming Before the Time Limit

Many insurances give you a time limit to claim the benefits. This is the most commonly the case with death insurance that has a limit from the date of death of the user. And if the beneficiaries are unaware of the existence such insurance cover which is part of the card, then there could be delay in applying for the benefit and the application may get rejected.

In order to validate credit card insurance, it is important that you are clear about the benefits it offers, as well as the application process. Carefully review the conditions mentioned in the contract and if you have any questions contact your bank.

Finally, it is your right to take advantage of insurance that is part of your credit card.

Why is it better to use a credit card than cash?

Why is it better to use a credit card than cash? Do you know the reasons?

At first glance we may think that using cash for payments and purchases will always be the best option, but it’s not entirely the case and here we show you why it might be better to use your credit card instead of cash.

Why is it better to use a credit card than cash?

Security

This is the main reason for using credit cards instead of cash. With this payment method you have the peace of mind of having anti-fraud protection in case of loss, theft or fraudulent use.

If you lose your credit card by calling the bank, you will be able to regain control of your money and information, whereas this is not possible with cash.

In addition, having a card is completely safer than having all the money in your wallet, but it is always advisable to keep it in a different place than the card.

Discounts

There are a variety of discounts and benefits available when paying by credit card. Some credit cards, for example, refund the difference of the purchases, you can also win prizes or points redeemable for the proper use of these.

The discounts earned can be used in stores, to accrue miles for travel or to have some kind of assistance.

Convenience

Having a credit card is more convenient than having to think about how much money to bring for a specific situation, or for example having to use exchange houses if you are traveling in another country. Someone with a credit card will never have these problems, as they will be able to access their money at any time and at any exchange rate.

However, it is logical that it is always recommended to carry some cash with you, for small payments or for purchases at street stalls, which usually do not receive cards.

It is also very convenient for the customer to make purchases and pay for them in instalments and over a long period of time, as best suits their finances.

Controlling Expenses

All purchases and expenses are recorded when paying with credit card, and can be reviewed by the customer in your transactional portal or through your mobile phone, showing detailed information, even by purchase categories.

Other Reasons

Making payments with credit or debit cards is the best way to avoid unnecessary fees and commissions, especially when you are out of your country, as you can save on currency exchange fees and cash withdrawals at ATMs.

They allow for easier tracking of expenses, a task that is quite complex when shopping with cash, as many purchase invoices and receipts accumulate, and sometimes it is almost impossible to track them.

Credit cards are not as dirty as bills and coins, which generally pass through a large number of people, bringing with them hundreds of bacteria.

It is also very important to mention that when using credit cards for payment the following month the user is financing at a 0% rate.

8 Free Things You Get With Credit Card: Money, Miles, Insurance, Vouchers & more

Everyone wants credit card as it offers many exciting features which are not available in any other payment option such as cash, cheque, debit card, etc. and thus helping in saving money.

But do you know that there are free things that come along with credit card? If not, then continue reading.

Free Money

Let’s start with objective of credit card i.e. FREE MONEY. The most important benefit or we can say the objective of the credit card is to offer FREE MONEY to the user every month for spending on almost anything. Free money is a magnet which attracts users. How much money is offered by the card companies varies with each card and depends on the income, risk profile, CIBIL score, and other important factors.

FREE Credit Card

There are some cards which carry ZERO annual and joining fee. So basically what you get is a card for free. Although there are conditions associated to avoid these two fees, such as minimum spend either annually or in the first few days of card issuance, but there are cards with no such requirement.

Free Grace Period

In addition to free money, user also gets a free grace period to make the repayment. This is the duration typically 21 days in which user has to pay the money used in a month. So for e.g. if your monthly billing cycle ends on 20th of each month, then your grace period to make bill payment would be around 10th of the next month. This is quite enough time to repay the money, as there is no interest charged during this period. But in order to get a good CIBIL score, you should not wait for grace period and instead pay the bills fully and before the due date.

Free Insurance Cover

Card companies partner with insurance companies and offer users FREE INSURANCE COVER. Typically types of insurance offered are health, travel, personal accident, life, lost baggage, etc. So any unfortunate event happening, cost would be borne by the insurance companies. But remember that insurance offers on credit card comes with various terms and conditions and user has to follow regular claim process in order to receive the claim amount. So basically twin benefits are offered – free coverage with no premium to be paid.

Free Airport Lounge Access

This especially is mainly offered to premium card customers. Lounge access gives travelers a peaceful place on the airport to sleep and relax, away from the crowded places at the airport. In fact, some cards also allow users to bring guest users in the lounge. Although this feature may not interest regular card users but for a frequent traveler, this is highly valuable as they are offered luxury lounge access.

Check out travel cards for Indians going on an international trip.

Free Air Miles

Credit cards also offer free travel points (or air miles) to the frequent flyers and spends made on the card. These accumulated points can later be used for buying flight tickets for free.

No Fee on Certain Services or Free Vouchers

There are cards available in the market which carry ZERO base fare charge on flight booking. Or offer free shopping or food vouchers. These vouchers are offered by SBI SimplyCLICK card, Axis Bank Neo, FBB SBI STYLEUP and others.

Free Movie Tickets

This is especially for the movie lovers. Cards such as KOTAK PVR Gold offers 2 free movie tickets every month at PVR movie theatres.

But always remember, the word FREE is GIMMICKY tactic to entice users either in credit card/shopping etc. Because ultimately credit card is one of the biggest money making income source for the card companies.

Unless someone has no monetary benefits, why would anyone offer money for FREE in today’s world, right?
And this money is recovered in the form of charges associated with each card such as:

  • Interest on late payment or non-payment of full balance
  • ATM cash withdrawal
  • Joining and annual fee
  • Over limit penalty
  • Balance inquiry
  • Mobile alerts
  • Cheque bounce and many others

Important point to note before selecting the right credit card is to read the terms and conditions associated with all the free features mentioned above.

2018: 17 Cashback Credit Cards in India with Offers

Ever imagined getting paid back on the purchases/spends you make? This is known as cashback in the financial glossary and is offered through credit cards. Cashback credit cards lets users earn certain amount of money back in the card account after using the card on eating out, watching movies, fuel purchase, making purchase online, etc. depending on the issuers.

There are many credit cards offering cash backs in India offering money back. Here’s the list of best cards:

Cashback Credit Cards in India

Card IssuerCard NameCash Back Offered
CitibankCiti® Cash Back Credit Card5% on movie ticket purchases, telephone bill payments
HDFC BankMoneyBack Credit CardRedeem accumulated reward points as CashBack against the outstanding amount on your Credit Card. (100 Reward Points = Rs. 20)
Axis BankMY Choice5% on any of the two - Dining, Fuel, Electronics, Utility Bills, Travel, Supermarkets
Axis BankMY Zone25% on online and box office movie ticket purchases
Axis BankPlatinumUpto 25% on online and box office movie ticket purchases
Axis BankNeo10% on online shopping at jabong.com
10% on mobile recharge done via the Freecharge mobile application
ICICI BankInAFlash50% on any online transaction done (upto Rs. 500)
ICICI BankHPCL Credit Card2.5% on fuel purchases
Standard CharteredManhattan Platinum Card5% on supermarkets and departmental stores
20% cash back on Uber spends upon minimum credit card spends of INR 15,000*
Standard CharteredSuper Value Titanium5% on fuel, phone and utility bills
State Bank of IndiaPlatinum cardsRs. 150 on Rs. 1,500 Fuel spend
State Bank of IndiaGold & SimplySAVE cardsRs. 100 on Rs. 1,000 Fuel spend
State Bank of IndiaGold Classic CardRs. 100 on Rs. 2,000 retail spend
State Bank of IndiaDefence cardRs. 100 on Rs. 750 spend in defence canteen
Kotak Mahindra BankDelight Platinum10% on dining, movies
Kotak Mahindra BankCorporate Wealth SignatureHigh cash back
HSBC BankVisa Platinum10% on all spends during the first 90 days from the date of card issuance

Although it seems very enticing to get money back for the spends you make, there are certain tricks played by the card issuers, which are overlooked by the applicant while applying for such cards. Here are some of the key points to make a note of when applying for cashback credit cards.

Before applying for cashback credit card check following details:

  • Is there any minimum spend required to avail cashback? Cashback is received only after spending certain amount of money. So check this before applying. It should not happen that, just to earn cashback, you spend money on buying unwanted things. Card issuers are at an advantage when they let you spend more. They earn interest if the user is unable to make full repayment before the due date.
  • When should the amount spent? – Certain cards require cards to be used during a specific duration only. E.g. in the first 30 days of card issuance. So check this out first.
  • Where should the cards be used: For e.g. on movie or dining cashback, is there any criteria on which movie theatre or hotel, card should be used. Many times, user is required to use the card at expensive places only. Or if shopping clothes, is there any criteria on which brand’s merchandise you get paid back.
  • Maximum cashback limit: It doesn’t make sense to opt for a card just for the sake of getting a cash back, if there is a cap on the cashback amount.
  • What is the maximum cashback per billing cycle: This is very important point to check. Many a times, there is a cap on the money you will receive back in each billing cycle.
  • What is the claim process, if cash back is not credited: If there is no cashback received, there should be a hassle free claim process.
  • When is the cashback credited back to the card account

How to make best out of cashback credit cards:

  • Typically user gets a fixed percentage/amount of cashback. So look for the one offering highest percentage of cashback.
  • Use it wherever possible, so that you get maximum cashback. For e.g day to day grocery shopping, online purchases, etc. For this, you need to be aware of the amount and where to spend.
  • Choose a card with no annual or joining fee to save money.
  • Look for cards where there is no condition on location, duration, or minimum amount to be spent for getting a cashback.

Eligibility Criteria:

Since cashback is one of the benefit offered, the eligibility criteria varies for each card issuer. Here are the common eligibility criteria requested by most of the banks:

  • Income
  • Credit Score
  • Documents: Pay slips, income tax return, bank statement, ID and address proof
  • Company you work for, in case applicant is doing a job.

Credit Card for Salaried Employees: Eligibility & Key Features to Consider

One of the key eligibility criteria for credit card approval is the income of the applicant. Although you can get supplementary card even when you are not earning, but if you wish to be a primary card holder then you should meet minimum income criteria set by the respective financial institution. In addition to this, there are other criteria as well, which are listed in the later part of this article.

What should salaried individual look for in a credit card:

Interest rate: This should be the first thing checked by a salaried person applying for the card. But if you think that you are honest to repay monthly bills on time and fully, then low/high interest rate should not bother you. In either case, always opt for a card with low interest. Because you never know, card repayments may get delayed because of financial uncertainties such as job loss, forgetting to pay the bill, and so on.

Reward Points and Cashbacks: Almost every card these days offer reward points when used for making purchases. But check where such cards are really accepted for redeeming the accumulated points. Typically card companies have tie-ups with select merchants (online/offline) only. And you cannot use the card at any other place to get reward points redeemed. So if merchants sell expensive items, then it may not make sense to get such card. If you are thinking of getting a card for regular use, then choose a one which offers reward points on grocery shopping.

Charges: Almost every bank charge processing fee which is fixed. Although this fee is small but still choose the one with no charge or low fee and save money.

Fees: Most of the banks charge joining and annual fee. And if card user spends certain amount in an year, then annual fee is waived off in the second year. Although this is tempting but at the same time, banks want users to spend as much as possible hoping that you will default and will pay interest.

Other eligibility requirements by the banks:

Credit Score: Once application is received, banks get your previous financial history from credit agency. And based on the details received, credit score is derived which is out of 900. If your score is above 750 then you stand a good chance to get the card approved.

Documents: In addition to the income mentioned, you will have to furnish the proof to validate your income. This includes monthly salary slip, income tax return, bank statement, offer letter of the employer, etc. This varies for each bank. Failure in producing these will result in application rejection.

Personal details: PAN card, Aadhaar card, residential address proof, etc.

These are the key criteria every individual applicant needs to have or furnish to the bank. Failure in submitting any of these, may result in application denial.

Here are few credit cards and minimum income required:

For monthly salary less than or equal to Rs. 10,000:

  • Vijaya Bank – Visa Classic and Visa Global
  • Syndicate Bank – Classic
  • Indian Bank – Bharat Card
  • Bank of India – India Card
  • Jammu and Kashmir Bank – Empowerment
  • Corporation Bank – Gold Card
  • Canara Bank – Visa Classic and MasterCard Standard

For monthly salary less than or equal to Rs. 20,000:

  • HDFC Bank – Freedom & Bharat Cashback
  • Bank of India – Visa Gold & Visa Gold International
  • Central Bank of India – MasterCard Titanium, Visa Gold, RuPay Platinum
  • Indian Bank – Gold, Classic
  • Syndicate Bank – Gold
  • Axis Bank – Gold
  • Andhra Bank – RuPay Platinum
  • Corporation Bank – Gold
  • Canara Bank – Gold

6 Ways to Reduce Credit Card Late Payment Fees

Having a credit card can be useful, as long as you are not in arrears. Every delay generates bank charges such as interest to pay on your unpaid expenses. For example, some banks charge late fees or charge high interest rates. So here are some tips to help you minimize the late payment of your credit card.

Contents :

  • How to choose your card
  • Use a single credit card
  • Know your repayment timeline
  • Pay back on time
  • Limit your expenses
  • Avoid withdrawals

1. How to choose your card

Late payment can generate significant additional costs. To minimize these costs, it is useful to look at the rate applied by banks regarding repayment and late payment and find the one that suits you best. In addition, bank charges may apply to different types of credit cards:

  • Conventional Credit Card: Make sure you pay back a portion of the amount you borrow each month. Your bank gives you a minimum monthly amount to pay and the payment deadline. Always pay on time to avoid late payment.
  • Prepaid Card: Your expenses are automatically debited from your account before the repayment due date. This means that, each month, your current account is reduced by the total expenses incurred. If your balance is insufficient, you pay interest based on the applicable APR.

Trick:

If you can’t pay your card balance this month, avoid making new purchases in the following month to reduce the costs of late payment. If you choose installment payments, try to reduce the number of repayments or even repay all your expenses at once. Be aware that by repaying the balance as soon as possible, you will pay less interest due to a potential late payment.

2. Use a single credit card

Another way to reduce your payment delays is to consolidate your balances from multiple credit cards into one card. So you don’t have to pay for the different cards, and you centralize all your expenses. It will be easier to follow up by consolidating your debts in one place. You can also better manage your late payments and pay off your card balance by paying one bill at the end of the month.

3. Know your repayment timeline

It is time by which borrower is required to fully repay the utilized credit. Make sure you know yours so you can repay your debts on time and avoid late payment.

4. Pay back on time

To avoid further payment delays, it is best not to exceed your credit card repayment deadline. You won’t have any additional expenses if you pay your bills on time. Learning to meet your payment deadlines will help you not lose too much money. Avoid unnecessary purchases to pay off your balance on time.

Trick:

  • If it is difficult to repay the entire balance, always try to pay more than the minimum balance mentioned by the bank.

5. Limit your expenses

Depending on the amount of your expense, it may be more advantageous to pay with your credit card or take out a loan. Because of the bank charges associated with repaying your monthly payments and possible late payment, you may prefer a loan for large expenses such as a car or renovating your home. Credit cards have a limited limit, so you won’t always be able to borrow as much as you want. In this case, they are to be preferred for day to day shopping purchases or others with a low cost. Typically, credit card rates are generally higher than personal loan rates.

You can also choose different payment methods. Prefer to draw a little from your savings rather than drawing it from your credit card.

6. Avoid withdrawals

With your credit card, it is also possible to withdraw cash at ATMs called as cash advance. As simple as it sounds, cash advances also have a cost. You will be subject to bank charges and interest related for using this service. To minimize your costs, think about spending only the money you have. If you do not repay them on time, your late payment may also cost you interest on the amount due.

By avoiding late payment, you save most of the time on unnecessary costs incurred. With these 6 tips, make sure you know the cost of your credit card. Read carefully all the conditions related to your card.

Is Your Credit Card Right One? 4 Signs That Tell, It’s Not

Good credit card management is, for many, the most important indicator for accessing bank loans on better terms in the future. Everyone who has had a relationship with a financial institution has used the plastic money, either for their first purchase of a cell phone or buying stuffs online or travelling because they offered incentives such as miles to travel or points to redeem for future purchases.

Over time, however, some bad habits create a damage to the credit history. There is a temptation to take advances with credit cards without paying attention to the fact that each bank charges a fee for this transaction and the current interest rates on this money are the highest for consumer credit and that if there is default, the moratorium rates are equally disastrous for any pocketbook.

You become parents

Parents who are new to their first baby don’t think much about all the changes that the new family member will bring. And they believe that life will continue as it was before and they will continue to go to those fancy restaurants, that they will find a way to keep traveling with the baby in their arms and they will continue to travel the world. That’s probably not the case and that’s why they should also check their credit card for a discount for their new needs.

Instead of that plastic to earn miles, choose the one that gives discounts on baby items or benefits on newborn clothes or milk jars and diapers. And if such cards are not available, look for a card specially made for shopping. Although, looking for discounts on diapers/shopping cards, will be less sexy than saving for that trip, but you will see that it will serve your finances better.

Your card is stretched over the limit

The misuse of credit is very costly. Over crossing the credit limit carries a very high interest rates which ends up affecting your credit history. If you are hung up on the installments you have the option to refinance with the bank, although this may generate new interest and lengthen the repayment of the debt. If you become delinquent the next month, your credit history may be affected.

Another option is to ask for an increase in the limit. But if you’re already hung up on the one you have and you’re lousy at managing your finances, you’re likely to be tempted to make a new advance to open up one more hole in your pocket, without having covered up the old one. Or finally, sell the debt to another bank. There are many entities offering card balance transfer at lower rates. But as long as you improve your situation, hand over the cards and end up paying off that debt.

Your credit card is from a private company

There are many private credit cards i.e. usually an agreement between banks and large supermarkets/others. The discounts or offers are specific to those companies only.

The problem is that if you accumulate points on one side, they may not work for you in another shop, and that’s a bit of a disincentive for the buyer. So before opting for such a card, check the policy carefully so that there are no surprises with your use of your plastic money.

No longer meets your financial objective

Credit card is not a’souvenir’, nor a reminder of anything. It is a means of payment and that’s it. See if the bank offers you a product that has a more favorable interest rate for your financial situation. There is no point in sticking to a card that may be obsolete and that does not even bring the minimum security to your finances.