Credit Card Uses
Credit card, blessing or curse. Proper usage of the card determines the outcome. There are no limitations on how the card can be used by an individual but some suggestions on the usage can help the individual from falling into the debt trap.
A credit card is a financial offering by institutes that allows an individual to use it for purchases on credit. The credit facility is what helps banks the most in making money but in the case of credit card, there is a catch. The individual is liable to pay credit money back all at once within a month to avoid any interest rates charged by the bank. This facility of the banks is what attracts borrowers to get a card. Credit cards can be used for a variety of purposes with no cap on end usage. It can be used to make purchases or even pay for services. It can be used to help you with any of your plans.
There is generally a limit of the amount that can be withdrawn from the card. This limit is there by default and is calculated by the banks taking into consideration the risk involved. Many banks also provide the facility to choose the EMI option of repayment. It means that the credit which the individual is liable to pay can be paid in small EMI’s ( Equated Monthly Instalment) rather than a lumpsum amount. This not only lows the burden of repayment for the borrower but also lowers the risk for the bank. Banks offer different types of credit card under various schemes with various attached benefits.
The usage of credit card is rewarded by cashback, loyalty points and also exclusive deals that attract people to use the card. The repayment tenure varies from bank to bank varying between 30 days to 60 days. If the amount of credit is settled by the borrower before the end of tenure there won’t be any interest charged by the bank. It’s like an interest-free short term loan. On the other hand, if the credit is not settled by the end of the tenure it would attract high-interest rates and penalties. Therefore proper usage with a balance between debt and assets should be maintained to avoid being overcharged.
Almost all banks offer various types of credit cards some might get you exclusive access to shows and events while others can get you huge cashback on shopping. Therefore all the policies and limitations have to be taken into consideration by the individual before going ahead with one. Canara Bank Credit Card is offered by Canara Bank. The bank has been one of the leaders in the credit segment and has exclusive benefits for individuals. Its credit cards come with benefits like-
- Credit to EMI facility- In this, the amount payable towards credit card can be converted into easy EMI’s which helps people in paying back.
- Insurance- It provides cost-free insurance for both husband and spouse secured up to a limit for its credit cardholders.
- Credit free period- This is the period which the bank provides. If the money is paid before this period’s end there won’t be any interest charged by the bank. If paid after an interest can be applied to the amount remaining.
- Cash Withdrawal- The credit card also provides a cash withdrawal facility. Under this, the credit card can also be used as a debit card to withdraw funds.