Credit card charges and fees that you must know

Just so you know, there is no such thing as ‘free credit card’. A credit card is, of course, a good option for making a sudden purchase when you are running low on cash. Moreover, you can earn rewards too. You can build your credit history. However, you are actually borrowing money from a bank when you are using a credit card.There are credit card charges that you should consider before and after availing one.

Let’s take you through some points that you must know about Credit card charges and fees:

 

Annual charges:

This is not a “hidden charge” that comes with a credit card. When you are availing a credit card, you must know that you have to bear the annual charges whether or not you make a transaction or not. It is a charge that you simply bear for the cost of enjoying the credit card. There are some banks that offer free credit card which means you don’t have to pay the annual fee for a certain period or lifetime. Watch out for hidden charges or terms & conditions whenever you are availing a ‘free credit card’. 

Over-limit fee:

It totally depends upon the credit card that you have. Some banks charge a hefty amount for over-limit transactions. Even if you are spending Rs 100 extra on your credit card, you may have to spend a minimum amount as an over-limit fee. 

Finance or interest charges:

It is not a fixed amount like other fees. The amount varies depending on your card’s APR or Annual Percentage Rate and the amount of the balance that you have carried beyond the grace period. You can avoid them by paying your balance every month. 

Foreign transaction fees:

You may have heard that credit cards are globally accepted. However, sometimes they do not reveal that there are some extra fees that you have to pay for foreign transactions. Top banks such as HDFC, SBI, ICICI, Axis charge a fixed amount on the transactions and you should really notice those before making one. 

Cash-advance fee:

There is a fixed amount that you can directly withdraw from ATM. This is a part of your total credit limit that is a cash limit. Cash withdrawal using a credit card is a really costly affair and it can charge you 2.5% of the amount withdrawn. 

Late -payment fees:

This is a basic fee for every credit card. You have to pay a minimum amount of your entire outstanding amount to your bank at a fixed date. If you are not able to do so then the bank will levy a late payment fee. It will be charged as a flat amount on the basis of your statement balance. 

Service tax:

You should pay your credit card bills on time because there is an 18% GST that you have to pay on all credit card fees such as annual fee, late payment fee, cash advance fee, interest charges. This is not a hidden charge and you should be calculative while being late for the payment. The more you’ll be late the more amount you have to pay as GST. 

So, these are some charges and fees applicable to all credit cards from all banks. You can get leverage on low fees and charges to get the most benefit of your credit card. Credit cards are really valuable when you are using them in the right way. It works as an emergency loan when you are in need. It can make your travel more convenient and safer. So, you can understand that credit cards are not something that you can stay away from. Rather, you can know all the terms and conditions that come with it and put those for good use. 

Key Steps To Take Before Paying Off Credit Card Debt

Often people compare the repayment of the credit card debt with climbing out of the black hole. The situations become worse when the payment structure becomes a huge amount. An over owed person feels the pressure of life in many ways. Not only the lender enforces the person you repay the amount, but also the people around you make the feelings of the repayment. The problems are that the credit card can very smoothly spiral out from the place if you do not care properly. Below we are describing the ways to how you can pay off your credit card

 

 Know your debt amount and the nature of the debt: 

 

The first and foremost thing is to know your credit balance. When we purchase the products with the help of the credit card we often forget that what the actual amount of that we are bearing in our head that we had to repay in the coming future. This is because we are the human being who tend to pay the amount which is visible in nature. We tend to ignore payments beyond our observation. Credit card companies sell their products in such a way that people often unable to understand that credit is being taken out of the money from your pocket.

 

 Check whether you are paying the debt or not: 

 

Sometimes, due to some technical issues defaulting your installments and thus you are overburdening day by day, although you are paying the debt in every instance.

 

 Create a budget and the plan for your credit card: 

 

When you purchase a credit card you always think about the budget and the plan of your credit card. In case if you apply without any plan and budget, then you may have ended with a high amount of debt beyond your expectations

 

Do not buy everything with the help of the credit card: 

 

There are people who buy each and everything with the help of the credit card. In fact, those types of people are so dependent on the credit card that even in order to purchase the daily groceries they take help from a credit. Thus in this way, there are some unnecessary burdens goes to their shoulder and people suffers. 

 

 Further, if you consider the below-mentioned steps you can easily keep a healthy credit score.

 Create a budget for yourself 

 

  • Create a budget for yourself so that you can plan your credit

 

  • Put your feet according to your income: 

 

  • Invest the money on credit just according to the income

 

  • Do not create unnecessary debt for yourself

 

  • Further, never create unnecessary debt for yourself

 

  • You can seek the help of the calculator to save the money

 

  • You can also opt for advance technology that helps to build a strong credit card record.

 

  • Adopt a balance transfer method

 

  • You can also a strong strategy to pay off the debt burden. In the crisis period, you can transfer your debt to another account. Also, seek the help of the debt counselor.

Hope you get some idea about the key steps which you need to take before paying off credit card debt.

How Credit Card helps Users to Maintain a Healthy Credit Score

Having a credit card is a matter of pride nowadays. Also, you can enjoy immense benefits from acquiring a credit card such as optimizing your credit score. A good credit proactively offers to gain money relaxation over your earning through achieving a less interest rate. Even you get a lower interest rate, best security offers on your wealth and insurance benefit over savings. The person who knows how to maintain a healthy credit score, is almost free from the financial risks as in any situation, that particular person will able to take any kind of financial debt.

 

 Have you been thinking over to boost your credit score for the long times?  Are you unable to understand traits that help you to maintain a healthy credit score? Without a doubt, credit can provide solutions to all these types of credit score related problems. Below we will try to enlighten all these aspects that can develop your credit score through credit score.

 

 Maintain your discipline: A lot of people face due to their low credit score. Due to the delayed payment of the installments on time people face this kind of problem. However, a credit card can resolve this problem. Pay your installments regularly, it will automatically increase your credit score. When to pay out all your debt on time, worldwide credit maintaining authority calculates the structure of your payments. Thus they make a full report on the basis of your repayment habit. In this way, you can develop your credit score very easily.

 

 Expense through your credit card: There are some people who acquire a credit card. But they generally don’t expanse through their credit card. Then this kind of expense habit will not help. To improve your credit score you must maintain a solid base of buying behavior regularly.  

 

 Payout the full amount: People fear the credit card as the credit card takes out a huge amount of money. Some extend it is true. But, if you use the credits cards very trickily you avoid this too. Try to clear the full amount of the debt over your credit card, then, of course, you need not bear interest rate.

 

 Do not take for granted:  Always, keep the assumption that credit card is more or less like a credit card. The way the debit card doesn’t require in any kind of money, in the same way, the credit card is too free, until unless you misuse the card. When you maintain a smooth financial track record. You get many credit benefits.

 

 Secure credit score by lowering balance: This is also a very important step. World credit score maintaining authority keenly notices how much percent of the money you generally use through your credit card. Never expense 30% of your credit limit. Or else it could lower your credit score. Despite knowing that high balance can lower your credit score, you may have the urgency of a sudden expense. In that situation, you may expanse beyond 30%. But, then you have maintained a twice expense structure.

 

 Continue your account: A few people hold a credit card however that fails to continue the card for a long time. However, this sort of financial behavior may not help in the long run as the constant structure only provides a proper financial goal or best credit score.

 

  To conclude we can say that, use the account intelligently and navigate the offers carefully Most of the time credit card gives a lot of offers and many more options. However, all these are beneficial. If you avail of all the offers that are promoted by the credits, there may some situations that may affect you in the long run.

What is a business credit card?

Business credit card refers to a credit card that only used for business purpose. It not used for personal use. Business credit cards are accessible to business industries of all sizes and purposes related to business. They can support trades that build a credit profile to progress upcoming credit appropriating the terms. 

 

It also helps small businesses and all types of businesses to shape their credit profit and improve future credit to borrow items. The small commercial Business credit cards also sponsored by an individual guarantee that contributes a personal obligation, which can also help in organizing credit terms. 

 

How credit card Function?

 

A business credit card has a wide range of lending institutions. The procedure for applying related to the regular credit card application. Business insolvents can apply with or without a proprietor documentation number. Moreover, it creates it even easier for all types of corporations to achieve a business credit card. 

 

Advantages and Disadvantages 

 

To get a business credit card, borrowers must finish the application. Largely, business credit cards can be simpler to apply for than non-rotating business advances since the procedure generally computerized with a prompt credit choice. Business credit cards have a higher interest rate that is beneficial for business purposes.

 

One of the most disadvantageous aspects of credit cards is personal security. Creditors will base the funding analysis on all of the evidence involved in the original credit application. Organizations have credit reports and set up a record as a consumer similarly that people do. Therefore, any action utilizing a business recognizable proof number will reflect in the business credit report.

 

Business credit cards typically have single benefits considered to entice business customers. These profits may be diverse from the paybacks offered to separate customers. Therefore, business credit cards play a vital role in business. 

Eligibility Criteria for Business Credit Card

Business cards are not only for enterprises. You can apply for a business card regardless of whether you are running a minor appear and have no office. Applying for small independent business credit cards may sound threatening. However, it is simpler than you may suspect. You may fit the bill for an independent business credit card and not understand it. There are few Eligibility Criteria for Business Credit Card.

 

There are few steps for eligibility for a business credit card are as followed: 

 

You should have a legal business  

 

In the event that you effectively claim a business, you can apply for an independent business credit card. You will be required to present your Employer Identification Number (EIN) and your Social Security number. Your own credit report will be utilized to decide endorsement for another charge card, so you ought to have great credit.

 

Starting a new business

 

It is vital to monitor your funds, including keeping your own and the costs of doing business independently. Small business credit cards are a helpful instrument for new organizations isolating business and individual funds. Moreover, additional capital can enable your new business to develop. Most new companies do not keep going long, so banks may look at new business applications in more detail since they represent a higher risk. 

 

You are already in business without realization

 

Regardless of whether your business does not have a legitimate structure, you may qualify as a business and have the option to apply for an independent venture charge card. In case you are procuring pay from playing out a help, filling in as a self-employed entity, or selling merchandise for a benefit. At that point, you are working a business. You do not have to stress over making a full strategy or in any event, thinking about a business name, since you are the business and business name is your name. 

 

Pretty much anybody can get a business charge card. You do not require big business or a partnership business. However, you should have the option to show business, regardless of whether it is simply your one-individual side hustle.

 

According to a report from the Consumer Financial Protection Bureau, credit card issuers usually do not report the action on your commercial credit card to your consumer credit reports, so using your business credit card naturally will not influence your individual credit scores. These are the criteria that you need to acquire for business credit cards. Eligibility Criteria for Business Credit Card are not that complicated.

Features and benefits of business credit card

apply forbusiness credit card

Business credit card refers to a credit card that only used for business purpose. It not used for personal use. Business credit cards are accessible to business industries of all sizes and purposes related to business. They can support trades that build a credit profile to progress upcoming credit appropriating the terms. There are many benefits to have a business credit card. Some of the main benefits of having a business credit card are as followed. 

 

It distinct personal and business expense   

 

If you own a small, business or you are sole-proprietor business credit cards can be helpful for you and make your expenditure easy. It helps to separate your financial expenses from your business expense. It also guides your financial status. Moreover, it helps in your personal savings that is more beneficial. 

 

Financial flexibility 

 

Sufficient cash flow is normally key importance for business holders. Regardless of the dimensions of the business. However, having a commercial credit card can make it much more suitable to keep your expenditures in check. Business credit card is much easier to obtain than a traditional one. 

 

Cashback and rewards 

 

Just as with numerous personal credit cards, business cards will frequently offer points, cash-back, or other enjoyable rewards. Moreover, many business credit cards offer travel credits as a reward. It also offers discounts on flight booking or movie ticket booking. 

 

Spending limits

 

Every so often, commercial credit cards will offer advanced credit or expenditure bounds than individual credit cards do. In fact, in some circumstances, the limits can be in a surplus of 50,000 or 100,000 USD. 

 

Increase your credit rating 

 

Having a corporate credit card and rewarding off the balance regularly can help quickly boost your commercial credit rating. If the sellers and dealers, you work with report businesses to the credit departments.

Advantages of personal credit cards 

 

From numerous points of view, business Visas can furnish you with more preferences over close to home charge cards. For instance, business cards will regularly not just have higher spending limits than individual cards. However, these higher cutoff points can make it a lot simpler to make huge organization related buys that you will be unable to make utilizing an individual charge card.

 

Better control overspending

 

If you have a commercial, the business has employees who travel, make obtaining inventory or supplies, or have other duties. Moreover, it involves them to apply for company money; a business credit card can help you to display precisely what they are purchasing, and how much they are expenditure.

How To Get A Credit Card If You Don’t Have A Job

In the modern and contemporary world of today, credit card has become one of the most important things to have. Many financial institutions or banks ask for a proof of employment before approving it. Thus, it becomes a bit difficult for many self-employed or unemployed people out there to obtain a credit card. But, fortunately, it is not completely impossible. There are a few ways that will help you get loan approval despite being self-employed or even unemployed.Here are some of the few ways you can get a credit card even if you do not have a job:

Showing proof of income: 

To get a credit card, income is more important than the job. If you do not have a job, you can still as much eligible to apply for it. You just need to have a substantial inflow of money into your account. You will need to submit the proof of income to the bank with your credit card request. The income could be from royalty, business profits, child support or even alimony. Some banks may also ask you for records of the income tax returns.

1.Credit card for students:

Students studying in any college or university are also eligible to apply for this. However, they need to have a trust fund, an investment, or some financial assets in order to qualify for this. There are some banks out there that could be willing to give you a credit card if you already have an existing account with them with sufficient funds. It is best to review the student credit card offers available with various banks and then choose the one that sounds more apt for you.

2. With the help of a co-signer

A co-signer is basically a guarantor who has good credit. When the co-signer approves you to get it, then he or she becomes equally responsible for payments like you. In the event of payment default, it also affects the credit score of the co-signer. Usually, only guardians or parents are considered as co-signers by the banks out there. However, there are some banks that may accept a co-signer who does not have any relation with you as well.

3. Applying for a secured credit card

If you do not have a job or if you are self-employed, you still can get a secured card. For this, you will just need to have enough funds available. The fund works as the collateral against the credit lines. This amount acts in the form of a security deposit for this. In the event of failure to make the payment for the balance, the amount will get deducted from the security deposit

This card is equal to easy money. But you must need to keep in mind that it can lead you straight into a debt trap if you are not careful enough. A credit card can only be of help if you use it judicious manner.

Hope this will help you.