Loan Terms

As the term suggests an add-on card is a privilege offered to the spouse parents or children of the primary credit card holder The fee for an add-on card varies between Rs 125 to Rs 1000 depending on the type of card and all expenses incurred on an add-on card are billed to the primary cardholder
Miles as they are popularly known log up each time a card is used in the card holders account and can be redeemed for free flights
This is payable in advance but not paid for in cash It is billed into the first billing
The interest rate that reflects the yearly cost of the interest the outstandings on your card is called the annual percentage rate This rate is charged to the card holder on the amounts carried forward beyond the due date for the payment of balances Most card issuers will tell you their monthly rate of interest It might sound low at 3 but when you look at the interest rate over the year it turns out to be as high as 43
Baggage cover is a built-in insurance for baggage lost in travel Though international and Gold cards offer it all other cards may not It is advisable for frequent travellers to look for this feature when choosing a credit card
Moving from one issuer to another with all unpaid credit card dues is called Balance transfer To lure card holders away from their competitors in order to transfer their balances over to them and to ensure that their own customers stay within their fold card issuers often offer attractive interest rates and payment facilities
This is the fee charged to a customer who is transferring an outstanding balance from one card to another

Credit card issuers send a monthly statement to cardholders that summarizes purchases made and payments due balance credits and finance charges If a credit card offers its users a rewards program then the statement also contains the updated log of points earned
The fine print statement of terms and conditions that a card holder signs on getting a card
The facility of using a credit card to withdraw cash from an ATM or Automatic Teller Machine called the Cash Advance facility
On withdrawal of cash from an automatic teller machine using your credit card cash advance fees are payable Cash advance fees are very high and are mostly in the range of 25 per transaction subject to a minimum of around Rs100 This facility should be used prudently as the interest rate is very high usually around 38
A card that requires you to make a full payment for all expenditure incurred by you by the due date Unlike credit cards charge cards do not allow carrying forward a balance and so charges no interest American Express and Diners Club are examples of charge cards
The branded card issued by VISA
A card that is offered by two organizations one a lending institution the other a non-financial group Airlines hotels and retail chains are known to offer co-branded cards Special offers and discounts are the popular benefits of co-branded cards
A card that entitles the holder to a revolving line of credit which is determined by the users income The days of credit one gets could range from 20 - 50 days calculated from the day of billing and not from date of purchase You can chose to pay your entire dues at one go or stagger them after paying the minimum amount due every month Besides this it entitles the member to plethora of benefits like travel discounts discount on retail loans
The maximum amount that a card holder can spend on the card The maximum spending limit is determined by the kind of card you own Check with your bank on what your credit limit is
Credit Shield is a waiver of outstanding payments on a card up to a stipulated limit in the event of accidental death of the card holder
A Debit card is basically ATM card on the move It enables you to access your bank deposits for payment When you make any purchases using a debit card then your bank account is automatically and instantaneously debited to the extent of the purchase amount
When payments are not made in time and according to the agreement signed by the card holder the account is said to be in default If you are in default the bank that has issued you your card is entitled to charge you a higher interest rate for that particular billing period as a penalty
The eligibility norms for a credit card differs with the card issuers The general norms f
The entrance fee or the joining fee is payable on approval of your application form Again this fee varies depending upon the issuing bank and the type of card requested and is somewhere between Rs 100 to Rs 400 More often than not this fee is waived
Executive Card Silver Card and Gold Card are the terms used by issuing banks to differentiate between the levels of services offered on each Naturally the gold card offers better features higher insurance covers and more facilities There is also an element of esteem associate with gold cards However all these features do not come cheap Gold cards have the highest fees and service charges associated with them
A free credit period ranges from 20-50 days during which the bank that has issued the card does not charge the card holder any interest After this period the payment has to be made on purchases made against the credit card If full payment for the outstanding amount is not made then the member loses the privilege of free credit from that date
Every credit card user is automatically covered for a certain sum of money by the issuing bank This General Insurance is paid to a card holders family in the untimely event of death General Insurance covers vary between bank to bank and also depend on the type of card owned
A Global Card enables you to use your credit card when you are overseas You can spend in dollars or any other foreign currency and settle the dues in your local currency Your credit limit is based on the basic travel quota BTQ entitlement and if this more than your assessed credit limit you could buy travelers cheques
Gold Silver and ClassicExecutive are the terms used by card issuing banks to differentiate between the levels of services offered on each On the premium segment is the gold card which gives higher insurance covers more privileges and discounts Here an element of prestige does form an important factor for subscribing to such cards But it does come at a cost as these cards have the highest fees and service charges associated with them
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While evaluating applications for joint cards banks take into account household income or the total income of all earning members in a household
The charge due to the bank that issued the card either when cash is withdrawn from an ATM or on the balance carried forward after the free credit period
The charge for borrowing money
An International Card entitles you to use your card overseas You spend in the currency of the location that you are in and settle the dues in Indian rupees Expenditure can be incurred up to your pre-fixed credit limit or up to the Basic Travel Quota BTQ guidelines that are set by the RBI
A special rate charged by a bank for the initial launch period of a card It is normally lower and with specific intention to entice new users and existing card users to switch between cards
The issuing bank or issuer as the term goes refers to the banks that issue cards
As the term suggests the Joining Fee is what you pay when your application form for a card is accepted It varies from bank to bank and on the type of card applied for Typically joining fees range from Rs 100 to Rs 1000
Means exactly what it says - the fee charge to cardholder whose monthly payment has not been received by the due date In the case of charge cards this fee is stated in terms of a flat per-transaction or in the case of a credit card it can be a percentage of the amount due
If you lose your card or if it gets stolen you must report the incident to the bank immediately in order to deactivate your card and prevent fraud Liability fee on a lost or stolen card is payable on the expenses incurred during the period between the loss and your informing the bank
Master Card is the branded offering from Master Card International and is distributed by issuing banks and financial institutions around the world
The minimum amount that a card holder can pay to keep the account from going into default Some banks set a high minimum if they are uncertain of the card holders ability to pay In general for credit cards minimum payment is 2 of the outstanding balance
The rate of interest charged for funds withdrawn from ATMs or funds carried forward beyond the free credit period
Offline debit cards debit the amount spent to a card holders bank account They are called offline because the signed chargeslip is used to validate the transaction later muc
Online debit cards instantaneously deduct the amount spent from a card holders bank account immediately You will be asked to enter your Personal Identification Number PIN when you pay with an online debit card
This is basically a life insurance which covers air accidents road accidents or otherwise The amount insured differs across the categories and again varies from one player to another
PIN or the Personal Identification Number is unique to every card and is a combination of numbers It is normally a 16 digit number with the first 8 digits reserving information about the card issuer and the country The next 8 stores customer information like the category of the member whether is a businessman individual or NRI The PIN serves as a key which allows you to avail certain services like cash withdrawal from automatic teller machines This number is very important and must be stored carefully Most credit card issuing banks instruct their clients to write the PIN in a very safe place or better still to simply memorize the digits
If Platinum as a metal is known to be more precious than gold it is likewise in cards whereby a Platinum Card is of the line with higher spending limits and additional perks
The method by which some card-issuing banks base their charges on the amount owed at the end of the previous billing cycle
Purchase Protection insures all purchases made on a card from damage loss due to fire or theft up to a stipulated amount money
Not a gun Revolver is the term banks that issue cards use for card holders who roll over part of the bill to the next month instead of paying off the balance in full It is estimated that seven out of ten card holders revolve the debt and are thereby called good or smart revolvers
Card issuing banks lend a specific sum of money to a card holder and allow that sum to be borrowed again once it has been repaid Most credit cards offer revolving credit
To encourage frequent usage of cards the card companies introduced the concept of reward points For Citibank card holders every 100 rupees worth of purchases made through the card the card older gains one point These points could be redeemed for gifts select product purchases and even for paying the annual fees So every point would be equivalent to one rupee For eg Standard Chartered card holders every 125 rupees worth of purchase made through the card makes one reward point
When a credit card holder guarantees payment to the bank by providing it with his Savings deposit details to ensure payment of the outstanding balance it is called a secured card Secured cards are used by people new to the credit game of credit cards or by those who are trying to rebuild their poor credit ratings
The fee that is charged by the credit card issuer on services offered like cash advance teledraft etc
Smart cards are called so because they are smarter They contain a computer chip with 16K of memory embedded in the plastic Smart cards can perform a number of functions access data stored in the chip they can be used as cash cards or as credit cards with a preset credit limit or even as ID cards with stored-in passwords
The basic card offered by issuers
Same as Add-on card
The date that goods or services were purchased or the date the cash advance was made
Banks and financial institutions around the world distribute VISA cards a product of VISA USA
What shows on a credit card holders bill when all outstanding dues are paid and no new purchases have been made during the billing cycle