There are many reasons to have a credit card, but the main benefits include convenience, protection, and the ability to build credit. Having an understanding of how credit cards work will help you choose the right cards and manage them well. Read on to learn about what credit cards are, and how they can help you when used responsibly.
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What is a credit card?
A credit card allows you to access a line of credit provided by a card issuer. Every time you pay for something with a credit card, you’re borrowing money from the card issuer to cover the purchase. Then, you have to pay the money back either in full at the end of your billing cycle or over time with interest included.
How do credit cards work?
Once you are approved for a credit card, the issuer authorizes a credit limit — the maximum amount you can borrow — along with an interest rate — the amount a lender charges a cardholder on balances. This rate is calculated as a percentage of the amount borrowed. The credit limit and interest rate you receive depends on your income, other debts, credit score, and available credit you may have on other cards.
When your credit card bill arrives each month, you have three options: pay the whole balance in full, pay the minimum amount, or pay some amount in between. The most expensive option is paying only the minimum each month as it will cost you the most in interest. You will be charged interest on the remaining unpaid balance which will then be added to your next credit card bill. Paying off your balance in full is the best option because you will only pay for your purchases and avoid paying interest.
Online bill paying allows you to view, schedule, and pay your bills right from your computer or phone. Learn more about what online bill pay is, how it works, and its pros and cons.
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What is online bill pay?
Financial institutions and bill-pay services partner to offer this service to allow you to pay your bills without writing checks. Most online bill pay options are linked to a checking account and offer three payment types:
Immediate one-time payments
Future one-time payments
Recurring payments
Many financial institutions offer online bill pay as a part of their online services. However, some may charge an additional fee to use the service.
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Benefits
One advantage of online bill pay is that it automates your payments. Bills that are the same amount each month, like your mortgage, rent, or car payment, can be scheduled as a recurring payment.
Scheduling payments in advance can help you avoid late or missed payments, even for bill amounts that vary from month to month.
In addition, online bill pay can help you consolidate your payments into one place. You can log in to your online banking portal and pay all of your bills instead of having to visit separate websites for each of them.
An individual cannot predict their emergency expenditure, no matter how hard they try. a sudden health crisis, the need for car repair, damaged electronic appliances - all these crises need an urgent financial arrangement.
for last-minute financial aid, consider getting a new credit card and tackle these unforeseen expenses. but while applying for a credit card is a piece of cake, it takes approximately ten business days after approval for the card to reach your doorstep.
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in the case of emergency expenses, it may not be feasible for you to wait that long to get the money. luckily, instant SBI credit cards come to your rescue.
these life-saving cards give you the card number instantly after the bank approves it. that way, you can use the card number to make your purchases even before you receive the physical copy of the card.
if you urgently need money or want to be prepared in such a dire situation, here is a list of the 6 best instant approval credit cards.
SimplySAVE SBI credit card
the State Bank of India has a transparent and simple process for applying for a credit card. here, you simply log in to the SBI card webpage and apply with your name, location, and contact details.
key benefits:
you get ₹100 cashback on making an ATM withdrawal within the first 30 days of card activation.
a unique feature of the SimplySAVE SBI credit card is that you can get a cheque or draft issued against your credit limit.
the bank also delivers the draft or cheque to you at your convenience.
Today’s fast-moving world needs the fastest solutions. Credit cards are a boon to many, especially to salaried employees, as they can pay all their bills without waiting for the salary date. Among the many credit cards in the market, SBI credit cards are more popular.
Compared to other credit cards, they offer great discounts, credit card rewards points, and benefits to their customers. SBI offers more than fifty credit cards. Of them, the best SBI credit card will be the one that caters to your needs.
So, if you are going to opt for one of the best SBI cards, here is a guide that will help you choose the right one.
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List of the best SBI credit cards
State Bank of India offers a variety of credit cards to cater to all requirements of the cardholder. SBI cards are categorized as premium, shopping and travel cards, classic and exclusive cards. all the cards offer unique reward points.
these reward points can be redeemed for cash back, gift vouchers, and purchasing products from the rewards catalog.
the reward points on SBI credit cards can be redeemed online as well as offline. through this article, let us take you through the process and frequently asked questions for all SBI credit cards.
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how to earn reward points on an SBI credit card?
you get rewarded for every rupee you spend using the SBI credit card. with some credit cards, you can get accelerated reward points for expenditure on movies, dining, and groceries. the reward points can be redeemed later for gift vouchers or buying products available in the rewards catalog. the table below describes the reward points earned on different credit cards.
A Credit Card is one of the most convenient ways to pay. If you use it right, you can enjoy interest-free credit, many reward,s and freedom from cash. Our 7 tips will show you how to use your Credit Card for maximum benefit. Time your purchases Each Credit Card has its own billing cycle. Once you are aware of the bill generation date of your Credit Card,you cann maximize your interest-free period.
For instance, if you make a purchase just after your Credit Card bill is generated, you can enjoy up to 45 interest-free days, and sometimes more. Pay your bill before the due date When you use your Credit Card regularly and pay your bill on time, your credit profile with the bank improves. This can lead to a range of additional benefits, such as an increase in spending limit and great offers on Personal Loans and other financial products.
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Moreover, such actions will improve your credit score, which is extremely beneficial if your score is low. Follow the rewards Read your Credit Card booklet carefully, especially details about the benefits it offers and the reward programe. Your Credit Card could open the door to a host of discounts on products and services besides privileges such as free lounge access and priority services at airports.
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Earning Reward Points on your Credit Card spending can accrue several benefits in the long run, from free flight tickets to movie vouchers to mega discounts on electronics. Be smart about repayment Your bank may offer you convenient ways to pay back your Credit Card bills – for example, EMIs. When you choose this option, you can pay for large purchases in monthly installments, like a mini-loan.
This will help ease your financial strain. You can also make your Credit Card payments through the Credit Card NetBanking. Use your card at trusted merchants Whether you are shopping online or at a local store, ensure that the merchant or retailer is an establishment you trust. This willminimizet risk of your card being misused.
Be alert with your Credit Card usage Be prudent about Credit Card use. Avoid maxing out on your credit limit every month. Monitor your Credit Card transactions regularly to notice specific patterns in your spending. Keeping track of your spending s will also ensure that unexpected transactions come to your notice and you can point them out to your bank immediately. You can even set your limits onyour Credit Card in order to avoid any overspending.
HDFC Bank is one of the most reputed and trustworthy financial institutions in India. It offers a wide range of financial products for its customers, including and not limited to bank accounts, Personal Loans, Car Loans, Business Loans, Investment Schemes, and Insurance Plans.
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Out of the diverse product portfolio of HDFC Bank, one of the most popular products is the wide range of Credit Cards offered by the bank.
You can choose from the various Credit Cards offered by HDFC, depending on your spending patterns and lifestyle requirements. Moreover, the application process is extremely easy as you can submit your application through the bank website or mobile app with a few taps.
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How to make most of your HDFC Credit Card?
Pay entire dues on time
Redeem the reward points before they expire
Maintain a good repayment record
Use at select outlets
Identify transactions that offer more reward points
Time your purchases
Spend more than the specified threshold
Credit cards have become a popular and convenient mode to make payments for goods and services. A credit card can help you to improve your credit score if you spend wisely and make your full payment before the due date. You can also enjoy great discounts, cash-back, and good deals that are often on offer. One can also use credit cards to buy expensive items/ white goods on EMIs (equated monthly installments. One can also use credit cards in emergency situations when one needs money urgently. Credit cards offer an interest-free period of up to 45 days and are useful for hassle-free transactions online and offline.
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What Is Your Lifestyle?
Credit cards are not just a convenient financial mode of payment but also a lifestyle accessory. In order to make the most of a credit card, you need to opt for the right card which suits your spending pattern, lifestyle, and needs. Many banks offer credit cards that are tailored for diverse lifestyle needs. Choose a credit card that suits your lifestyle and offers you maximum rewards.
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Axis Bank had launched the Axis Magnus credit card sometime in 2019 and it remained a mediocre card back then. However, recent changes that Axis has done with the Magnus credit card’s benefits and simultaneous devaluation of the HDFC Infinia and DCB has made Axis Magnus a very good card to hold. In this article, I will list down my views on the Axis Magnus credit card and a comparison with HDFC Infinia and DCB, to see if Magnus is really better than Infinia/DCB.
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My views on Axis Magnus credit card
The Axis Magnus credit card has been in existence since 2019. However, given the low reward rate of 1.2%, high annual fee (10K) and very high fee waiver threshold (15Lakhs) the card remained very mediocre. However, Axis Bank has made some changes in the reward program making the card quite interesting. The changes are
Monthly Milestone Benefits: 25,000 RPs worth INR5,000 on monthly spending of INR1Lakh (i.e. 5% reward rate). This one change alone increases the reward rate on the card from 1.2% to 6.2%. Only wallet spends are excluded in the calculations.
Accelerated Reward Rate: 5x reward points (i.e. 60 RPs) on every INR200 spent on travel spending via Travel Edge (6% reward rate). Thru its Travel Edge portal, travel bookings will earn a 6% reward rate
International lounge access: Unlimited international lounge access via Priority Pass for the primary cardholder.
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while credit cards are a convenience to own, you must steer clear of the potential debt trap they may lead you to.
credit cards can be quite handy if you learn how to handle ‘free money. however, it can be detrimental if you misuse the card or lack sufficient knowledge about its usage. if you are looking to apply for a credit card, reflect on the pros and cons so that you are well informed about your decision.
here is a list of the pros and cons that will help you get absolute clarity on the positive features and the pitfalls that you can steer clear of, for a smooth experience.
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pros of using a credit card build credit history flexible credit repay borrowed money in installments earn rewards and benefits provides emergency funding EMI facility purchase protection
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cons of using a credit card
5 Tips to boost your credit score in no time
an open credit card that is not being used may harm your credit score in the long run. besides, you don’t even need more than two credit cards, as the more the number of cards, the more statements you will get, leading to confusion and potential mismanagement.
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to build your credit score, it is vital to reduce your debts. however, it often gets challenging to keep up with multiple repayments, leading to stress and missed payments.
debt-to-income ratio is a simple but important concept to get your credit score on track. it can be explained as the ratio of your total debts vis-à-vis your overall income. thus, a higher debt-to-income ratio indicates a higher level of debt, which also means a lower credit score.
if your credit card company wishes to increase your credit card limit, embrace it joyfully as a higher credit limit reduces your credit utilization without any effort on your part. besides, a higher credit limit is handy for emergencies unless you cannot control your urge to splurge, in which case a lower credit limit may be better for you.
every credit bureau in India, including CIBIL, must provide a free credit score and report to individuals once every year. this means you can download your credit report annually and review it for any incorrect listings, free of cost.
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Money is the key to a happy life. Many couples get into conflicts because of money. When you and your partner have financial differences then every day is going to be stressful, so there is always a need to align with your spouse in money matters.
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It sometimes can lead to unexpected endings leading to breakups or divorce, it still will be stressful if you are not on the same page, so being on the same page will help you live a stress-free life and fill happy colors in your marriage life, and also build up a healthy relationship.
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IFSC Code is a unique 11-digit alphanumerical code that is assigned by Reserve Bank of India or RBI to each bank branch respectively to participate and to monitor online fund transfer of money.
You might have been come across to use of the IFSC Code especially while the online transfer of money by National Electronic Fund Transfer or NEFT, Real Time Gross Settlement or RTGS and Immediate Payment System or IMPS, these cannot be made possible without valid IFSC Code.
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What are the Features of IFSC Code?
Easy and convenient online transfer of funds through NEFT, RTGS and IMPS. Monitored online transactions. Has unique identification codes that avoids confusions. Secure transactions and eliminating errors of any fraudulent activities during online money transfers.
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What is the format of IFSC Code?
What is the Significance of IFSC Code?
What is the process to use IFSC Code?
• For Electronic Fund Transfer by providing beneficiary bank account number, branch name of the bank and IFSC Code. • For making Credit Card Bill Payment, by using IFSC the bill payments can be made via tablets, mobile phones, laptops, etc.
The NPS (National Pension System) is another best financial investment product that not only helps you save your tax go but also the individual can save for their retirement. But if the individual is planning to save in NPS to save on tax, there are some steps that must be followed to gain tax-saving benefits.
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How to benefit from tax saving under NPS
While investing in NPS the individual can benefit from tax-saving under 3 sections of the income tax act, 1961
Section 80CCD (1)
Section 80CCD (2)
Section 80CCD (1b)
Section 80CCS (1)
This section is available for the individual who performs self-contribution to the NPS Tier-1 account. At present, an individual can claim a tax benefit of up to 1.5 lakh per financial year. There is no limit for the individual to invest in a Tier-1 NPS account, but the individual can claim for the tax benefit of up to Rs1.5 lakh.
Section 80CCD (1)
The tax deduction comes under the overall limit of Section of 80C income tax, that means if the individual who has already claimed for tax deduction under 80C section cannot claim deduction under this section simultaneously in 80CCC and 80CCD.
Section 80CCD (2)
Tax benefit under 80CCD (2), can be claimed by the individual when the individual is deposited on behalf in the NPS Tier-1 account. As per the IT laws, an individual can deposit up to 10% salary into his or her NPS account.
Under this section, the depositor has no limit to deposit in the account unless the limit does not breach the 10% limit the individual is free to deposit.
The tax deductions under this act 80CCD (2) are above section 80CCD (1).
Section 80CCD (1b)
Under this section, individuals can claim for tax deduction up to Rs 50,000 per financial year. Apart from the above-mentioned tax saving sections. This deduction was introduced in the year 2015-16.
This tax deduction of 50,000 is an additional tax break over the tax deduction under sections of 80CCD (1) and 80CCD (2) the tax deduction can be claimed to deduct from the gross total income before computing the tax liability.
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Tax saving investments are an essential element of everyone's life, these plans help in tax deduction under section 80C or 80CCC.Though these investment plans offer tax deduction many still don't prefer to invest due to lack of proper knowledge or the lower returns that they get for their invested amount and fear of the risk that comes with various investments.
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Normally tax savings session begins from the 1st of April for both the salaried and non-salaried taxpayers. To make the best out of these tax savings look for both tax exemption and to earn tax-free income. In today's lifestyle, there are many ways to save taxes and to save maximum as possible.
Tax savings should be in such a way that it should give you good returns at the end and help you reduce tax. Before choosing the tax-savings investment plans or schemes check for components like the safety, returns, liquidity, terms and check how the return will be taxed.
As per the Online Income Tax under section 80C, the investor is eligible for tax exemption up to the limit of Rs 1,50,000/-. The tax savings investments include ELSS, FD's, LIC, PPF, NSS, and bonds.
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A term insurance plan helps secure your family financially in case you die during the policy term. Besides, the tax benefits on offer would help raise your in-hand salary. Flexibility in term insurance payment offers, affordable premiums only make your term insurance journey rewarding. Check out this post below and know about term insurance & its advantages below.
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What is Term Insurance?
Term insurance is a contract between the policyholder and the insurance company where the latter agrees to pay a handsome amount should the latter die during the policy term.
What are the Advantages of Term Insurance?
The following are the benefits that a term insurance policy provides you –
Contra Mutual Funds
Contra Mutual Funds are the contrarian style of investing, this kind of investment option offers superlative returns, but this comes with high risks. This mutual fund invests against the existing market performance and the stocks. The fund manager purchases the stocks that are at the lower value and holds it for the long-term or up to when the demand increases.
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The contra funds are the long-term kind of funds and not short-term investment options they profit you higher returns in the long term. Investors who want to invest in Contra funds should have patience as these funds invest in underperforming stocks, so one must wait till it grows or starts performing well, so the investor has to wait for long to earn higher returns. This investment option comes with multiple features like patience, risk tolerance, time, etc.
What are the Contra Mutual Funds?
These are the Mutual Funds that invest in underperforming companies and wait for the best time allowing the stocks to give best performance. As they have a great scope of massive potential growth.
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A Credit Card is the common mode of payment these days. Right from groceries, lifestyle to gadget shopping, you can use it to buy anything. However, if you need urgent cash, then you can use your Credit Card to apply for a loan. Read further, to know more about a loan on a Credit Card, and how it works.
Often, you may find yourself in a situation where you are unable to meet your financial obligations. Although it is easy to apply for a personal loan, a pre-approved loan against a Credit Card facility will give you instant access to funds, thus saving your time. Let’s get to know about a loan on a Credit Card, and how it works.
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How does the Loan on a Credit Card work?
The most significant advantage of a Loan on a Credit Card is that you get access to emergency funds that you can use to pay school fees, EMIs, vacations, among others. The disbursement is instant. As an existing Credit Card customer with your preferred bank, you can avail of a Personal Loan amount of up to Rs 20 lakh, at attractive interest rates. What’s more, the documentation is minimal, and you have the flexibility to repay the loan amount in 60 months. ICICI Bank offers attractive and competitive interest rates for a Loan on Credit Card.
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What is the budget?A budget is a plan that tells you how to spend the money over a particular period. Basically, having a budget is to decide the amount of money spent each month. This will help you to control your spending and track the amount of money you can save every month. Without a budget, you will overspend and may run out of money before your next month's pay.
In general budget = Total Income per month - Total Money spent per month
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Why do I need a Budget?
It helps you decide how much to spend on a particular item and the remaining can be saved. The budget helps you avoid spending money on unnecessary things and save the rest of the money.
Why should you save money?
Money is always needed anytime, anywhere for every one of us. You never know when unexpected things may happen, when you need money at that time the money you have saved will help you. Always saving money will give you peace of mind and you can plan your future. So it is necessary to save money.
How to start a budget?
How to use a budget?
ICICI Coral Credit Card is offered by the premium banking institution which is packed with number of benefits. It is one of the flagship products that offers advantages like free movie tickets, discounts on dining, exceptional reward benefits, complimentary access at the airport and at the Railway lounges, fuel surcharge waiver, etc.
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Features and Benefits of the ICICI Coral Credit Card:
Free Movie Tickets -
The card holders can avail 2 free movie tickets every month by booking through BookMyShow or INOX. Discount is offered up to Rs 250/- per ticket if the price above this the cardholder must do the additional payments.
Complimentary Domestic Railway Lounge Access -
The cardholder gets the opportunity to get the access to the domestic railway lounges at free of cost at every quarter. This feature is not available with many other cards.
Complimentary Domestic Airport Lounge Access -
Get 1 free complimentary ticket for free lounge access at the domestic airports every quarter.
ICICI Bank Culinary Treat Program -
This feature is offered by the bank to the cardholder, under this the cardholder gets the opportunity to dine across more than 2,500 restaurants in India. Also offers 15% discount at the restaurant bills.
Fuel Surcharge Waiver -
At all HPCL filling stations the Coral Credit Cardholder gets 1% fuel surcharge waiver.
Reward Points -
The coral credit card offers rewards to the cardholder in the form of PAYBACK Program, the reward points are offered when the payments are done also from the merchant the reward points are offered. The redemption is done in the form of cash that is added to the cardholders account directly.
ICICI Ferrari Platinum Credit Card is a co- branded credit card offering huge benefits. This credit card offers Ferrari Merchandise benefits along with the travel, dining, movies benefits. But there are many other alternative credit cards available in the market that offers much more rewards, as this card is dominantly a good option for the Ferrari lovers than the other category people. This review will help you analyze to decide to go with the ICICI Ferrari Platinum Credit Card or not.
Benefits and Features of the ICICI Ferrari Platinum Credit Card:
Ferrari Edge -
Travel Privileges-
Entertainment Benefits-
Dining Privileges -
Other Benefits -
Reward Program -
Charges and Fees of the ICICI Ferrari Platinum Credit Card:
Late Payment Fee -
Bottom Line:
The ICICI Ferrari Platinum Credit Card is especially for those who are the Ferrari lovers. If you are not a Ferrari lover, then this card is not a right option for you, as there are many other credit cards available in the market offering great benefits. Review the credit cards and select the best card for you.
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