{"id":1310,"date":"2019-12-10T10:25:00","date_gmt":"2019-12-10T04:55:00","guid":{"rendered":"http:\/\/blog.budwisefunds.com\/?p=1310"},"modified":"2020-12-07T18:21:22","modified_gmt":"2020-12-07T18:21:22","slug":"all-you-need-to-know-about-credit-cards","status":"publish","type":"post","link":"https:\/\/budwisefunds.com\/blog\/all-you-need-to-know-about-credit-cards\/","title":{"rendered":"Credit Cards &#8211; All You Need To Know About Credit Cards"},"content":{"rendered":"\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\"><strong>Joining Fee By Credit Cards<\/strong><\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">It is a one-time fee charged by credit cards company for issuing the credit cards. It is usually the annual fee for the 1st year.<\/span><\/p>\r\n<p><span style=\"font-size: 24px;\"><strong>Further Reading: <a href=\"https:\/\/whatismutualfund.in\/\" target=\"_blank\" rel=\"noopener noreferrer\">What is Mutual Fund<\/a><\/strong><\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">Currently, there are many cards that are offered for free, for example, ICICI Bank Platinum Chip Credit Card, IndusInd Bank Platinum Card and many more. <\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">These cards are issued without any joining fee as well as without any renewal fee.<\/span><\/p>\r\n<p><script async=\"\" src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script> <ins class=\"adsbygoogle\" style=\"display: block; text-align: center;\" data-ad-layout=\"in-article\" data-ad-format=\"fluid\" data-ad-client=\"ca-pub-6495755798120621\" data-ad-slot=\"6499025866\"><\/ins> <script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\"><strong>Annual fee\/ Renewal Fee \u2013 <\/strong><\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">It is a fee levied by the credit card company on the card holder for using credit card. This annual fee is billed to your next monthly statement after the end of the first year. However, not all credit cards charge this fee while some of the credit card issuers\u00a0 waive off this annual fee if the customer uses his\/her credit for purchases beyond a certain limit, for example, SBI SimplyCLICK credit card waives of annual fee of the subsequent year upon spending Rs. 1 lac in the current year..<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\"><strong>Statements<\/strong><\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">Statements will be issued once every month to the card holder. Generally, e-statements are sent, however, there is an option of requesting paper statements which is chargeable. No statement will be issued in case the balance is below 100 (this limit could be different in case of other cards).<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">The date on which statement is generated is known as <strong><em>Statement Date<\/em><\/strong> and the date by which the outstanding balance is payable is known as <strong><em>Payment Due Date<\/em><\/strong>.\u00a0<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\"><strong>Billing Cycle<\/strong><\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">Billing cycle is the interval or period from the end of one billing statement date to the next statement date. Billing cycle is not standardized in the sense that it is dependent on the date of issuance of the credit card and hence may vary for different credit cardholders. The date on which the first statement is generated will remain the same for the subsequent statements irrespective of the days in any month. For instance, your first statement is generated on 2nd Jan. So every subsequent statement will be generated on 2nd of every month only.<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\"><strong>Interest free (Grace) period \u2013<\/strong><\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">It is the period for which you use the credit, without paying any interest on it. This period can vary from 20-50 days or even more depending on the credit card issuer. The interest-free period does not apply for cash advances and revolving balances.<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">For example, suppose your statement date is 17th November covering transactions between 18<sup>th<\/sup> October to 17<sup>th<\/sup> November and payment due date is 5th December. In this case, payment due date is 18 days after the statement date. So, if you have made a transaction on 18<sup>th<\/sup> October then interest-free period is 48 days (18 Oct \u2013 5 Dec) whereas, for a transaction made on 17th November, the interest-free period is only 18 days (17 Nov \u2013 5 Dec).<\/span><\/p>\r\n<h2 class=\"entry-title\"><span style=\"font-size: 24px;\"><strong>Also Read: <\/strong><\/span><a href=\"https:\/\/budwisefunds.com\/blog\/what-is-national-pension-scheme-a-complete-overview\/\" rel=\"bookmark\">What is National Pension Scheme? A complete overview !<\/a><\/h2>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\"><strong>Annualized Percentage Rate \u2013<\/strong><\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">The monthly interest rate charged by the credit card company when annualized gives APR (Annualized Percentage Rate). Monthly interest rate of 4% p.m. will translate into 48% APR.<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\"><strong>Minimum Amount Due \u2013<\/strong><\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">It is the amount to be paid to the bank\/credit card company before the due date in order to avoid any penalty or late fees imposed by the issuer of the credit card. Minimum amount due is usually higher of the following: &#8211;<\/span><\/p>\r\n<p><span style=\"font-size: 20px; color: #000000;\">a) 5% of total outstanding plus ongoing EMI plus taxes if any<\/span><\/p>\r\n<p><span style=\"font-size: 20px; color: #000000;\">b) Minimum amount as specified by the card issuer (for example in case SBI and HDFC cards it is Rs. 200)<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">Any unpaid Minimum Amount Due of the previous statements will be carried forward in the next statement and will be added in the next statement\u2019s Minimum Amount Due.<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">Customers should not make a habit of paying only minimum amount because interest will be levied on the rest outstanding amount. For instance, on 15th April you spend Rs. 5,000 by using your credit card\u00a0 and your statement is generated on 15th May with a payment due date of 1st June. So, by 1st June you should pay your bill of Rs. 5,000 to the credit card company. Credit card companies will also give you an option of paying only a minimum amount. But customers should avoid falling for this, as it only prevents you from paying late fee but not the interest that will be charged on the credit availed by you. So always pay your credit card bills in time when you have the money.<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\"><strong>Credit Limit \u2013<\/strong><\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">This is the maximum amount up to which you can use your credit card for purchases. The assignment of credit limit is at the sole discretion of the credit card company. The credit limit can be increased or decreased based on your usage and repayments of bills. If you pay your credit card bills irregularly or fully utilize your credit limit every month then credit card issuer might decrease your credit limit.<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\"><strong>Available Credit Limit<\/strong><\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">It is the actual amount that is available to the cardholder for spending. Available credit limit is calculated as below: &#8211;<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">Available credit limit = Credit Limit \u2013 Current Payable Balance<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\"><strong>Cash Limit<\/strong><\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">Cash limit is the maximum cash one can withdraw using his\/her credit card. Withdrawn amount will be subject to fees and charges as applicable. This cash limit is inclusive of the overall credit limit.<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\"><strong>Total Payment Dues<\/strong><\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">It is the total outstanding balance to be payable by the card holder before payment due date. These are calculated as below: &#8211;<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">Previous Balance \u2013 Payments \u2013 Credits + Finance Charges + Cash Advance = Total Payment Dues<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\"><strong>Payment\/ Credits<\/strong><\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">It is the amount received towards your credit card account. It includes payments made by the cardholder towards his\/her credit card account, cash back, etc.<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\"><strong>Purchases\/ Debits<\/strong><\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">It is the total amount of transactions charged towards your credit card account. Simply put, it is the total amount you spend using your credit card account.\u00a0<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\"><strong>Opening Balance<\/strong><\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">It is the closing balance of the previous statement. For example, if the total payment dues are 2,000 as per your previous statement then in the current statement it will be shown as opening balance.<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\"><strong>Finance Charges<\/strong><\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">Finance charges are payable on all transactions including EMI from the date of transaction if the cardholder does not pay his\/her balance in full and as well as on all cash advances taken by cardholder.<\/span><\/p>\r\n\r\n\r\n\r\n<figure class=\"wp-block-table\">\r\n<table>\r\n<tbody>\r\n<tr>\r\n<td><strong>Option<\/strong><\/td>\r\n<td><strong>How interest will be levied<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>1) If full payment of Total Outstanding is made before Payment Due Date<\/td>\r\n<td>No interest will be levied<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>2) If partial payment is made before Payment Due Date<\/td>\r\n<td>Interest will be charged for all transactions made in the current cycle from the date of transactionThe closing balance will attract interest from one day post the Statement Date till one day prior to the payment date \u00a0 \u00a0<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>3) If you usually make Partial payment, but in the Current month you have settled your Outstanding dues in full before Payment date<\/td>\r\n<td>Only the closing balance as per your previous will accrue interest until the payment date<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/figure>\r\n\r\n\r\n\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">Following are the examples of the above cases \u2013<\/span><\/p>\r\n<ul style=\"text-align: justify;\">\r\n<li><span style=\"font-size: 20px; color: #000000;\"><strong>Example of Option 1<\/strong><\/span><\/li>\r\n<\/ul>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">Statement date \u2013 1<sup>st<\/sup> Oct<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">Payment due date \u2013 21<sup>st<\/sup> Oct<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">Payment Made \u2013 Up to or on 21<sup>st<\/sup> Oct<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\"><strong>Note: &#8211;<\/strong> The payment should be realized by the credit card company before the payment due date. For example, if you make the payment through cheque then take care of the fact that the payment gets realized by the credit card issuing company on or before payment due date.\u00a0<\/span><\/p>\r\n<ul style=\"text-align: justify;\">\r\n<li><span style=\"font-size: 20px; color: #000000;\"><strong>Example of Option 2<\/strong><\/span><\/li>\r\n<\/ul>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\"><strong>1<sup>st<\/sup> Oct<\/strong> \u2013 Statement Generated with previous outstanding balance of Rs. 15,000 and with the Payment Due Date of 21<sup>st<\/sup> Oct.<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\"><strong>10<sup>th<\/sup> Oct<\/strong> \u2013 Transaction made for Rs. 3,000<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\"><strong>21<sup>st<\/sup> Oct<\/strong> \u2013 Payment of Rs. 10,000 made to the credit card company<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\"><strong>1<sup>st<\/sup> Nov<\/strong> \u2013 New statement will be generated with previous outstanding balance of Rs. 8,000 along with interest charges for the following:-<\/span><\/p>\r\n<ol style=\"text-align: justify;\">\r\n<li><span style=\"font-size: 20px; color: #000000;\">Interest on Rs. 15,000 from 2<sup>nd<\/sup> Oct to 20<sup>th<\/sup> Oct<\/span><\/li>\r\n<li><span style=\"font-size: 20px; color: #000000;\">Interest on Rs. 5,000 (15000-10000) from 21<sup>st<\/sup> Oct to 1<sup>st<\/sup> Nov<\/span><\/li>\r\n<li><span style=\"font-size: 20px; color: #000000;\">Interest on Rs. 3,000 from 10<sup>th<\/sup> Oct to 1<sup>st<\/sup> Nov<\/span><\/li>\r\n<\/ol>\r\n<p><script async=\"\" src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script> <ins class=\"adsbygoogle\" style=\"display: block; text-align: center;\" data-ad-layout=\"in-article\" data-ad-format=\"fluid\" data-ad-client=\"ca-pub-6495755798120621\" data-ad-slot=\"6499025866\"><\/ins> <script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><\/p>\r\n<ul style=\"text-align: justify;\">\r\n<li><span style=\"font-size: 20px; color: #000000;\"><strong>Example of Option 3<\/strong><\/span><\/li>\r\n<\/ul>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\"><strong>1<sup>st<\/sup> Oct &#8211; <\/strong>Statement Generated with previous outstanding balance of Rs. 15,000 and with the Payment Due Date of 21<sup>st<\/sup> Oct.<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\"><strong>19<sup>th<\/sup> Oct \u2013 <\/strong>Payment of Rs. 15,000 made to the credit card company<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\"><strong>1<sup>st<\/sup> Nov<\/strong> \u2013 New Statement will be generated with interest on Rs 15,000 from 2<sup>nd<\/sup> Oct to 18<sup>th<\/sup> Oct i.e. for 17 days<\/span><\/p>\r\n<p><span style=\"font-size: 24px;\"><strong>Further Reading: <a href=\"https:\/\/www.mutualfundssahihai.com\/en\/plan-every-goal\" target=\"_blank\" rel=\"noopener noreferrer\">Mutual Funds Sahi Hai<\/a><\/strong><\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\"><strong>Late Payment Charges<\/strong><\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">Credit card companies impose late payment charges if the cardholder does not pay Minimum Amount Due before Payment Due Date. These charges generally vary from bank to bank. Following are the late payment charges of HDFC bank: &#8211;<\/span><\/p>\r\n\r\n\r\n\r\n<div class=\"wp-block-image\">\r\n<figure class=\"aligncenter size-large is-resized\"><img loading=\"lazy\" class=\"wp-image-1314\" src=\"https:\/\/budwisefunds.com\/blog\/wp-content\/uploads\/2019\/12\/ta1.png\" alt=\"\" width=\"405\" height=\"240\" srcset=\"https:\/\/budwisefunds.com\/blog\/wp-content\/uploads\/2019\/12\/ta1.png 309w, https:\/\/budwisefunds.com\/blog\/wp-content\/uploads\/2019\/12\/ta1-300x178.png 300w\" sizes=\"(max-width: 405px) 100vw, 405px\" \/><\/figure>\r\n<\/div>\r\n\r\n\r\n\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">Some credit card companies impose <strong>late fee charges<\/strong> over and above these charges.<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\"><strong>Cash Advances<\/strong><\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">Cardholders can make use of their credit cards to access cash in case of emergency from any domestic\/international ATMs. A transaction fee would be levied on all such withdrawals which would be higher of 2.5% or Rs. 500. This transaction fee would be billed to the cardholder in the next statement. Finance charges are to be paid on cash advances from the date of transaction over and above cash advance fee.<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\"><strong>Other Charges charged by the credit card companies<\/strong><\/span><\/p>\r\n<ul style=\"text-align: justify;\">\r\n<li><span style=\"font-size: 20px; color: #000000;\"><strong>Cheque Bounce Charges<\/strong><\/span><\/li>\r\n<\/ul>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">In case the cheque deposited towards bill payment bounces for whatever reason, then credit card company will impose cheque bounce charges.<\/span><\/p>\r\n<ul style=\"text-align: justify;\">\r\n<li><span style=\"font-size: 20px; color: #000000;\"><strong>Over Limit Charges<\/strong><\/span><\/li>\r\n<\/ul>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">These charges are applicable on total outstanding amount exceeding credit limit at a rate of 2.5% or 500 whichever is higher.<\/span><\/p>\r\n<ul style=\"text-align: justify;\">\r\n<li><span style=\"font-size: 20px; color: #000000;\"><strong>Reward Handling Charges<\/strong><\/span><\/li>\r\n<\/ul>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">Some credit card issuing companies impose reward handling charges on the cardholder. A fee of around Rs. 99 + GST is levied on every redemption request.<\/span><\/p>\r\n<ul style=\"text-align: justify;\">\r\n<li><span style=\"font-size: 20px; color: #000000;\"><strong>Cash Repayment Fee<\/strong><\/span><\/li>\r\n<\/ul>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">Cardholders can make payments towards their outstanding dues by depositing cash at any nearby branch of the credit card issuing bank. Some credit card issuing companies do not accept cash.Example: American Express.<\/span><\/p>\r\n<ul style=\"text-align: justify;\">\r\n<li><span style=\"font-size: 20px; color: #000000;\"><strong>Card Replacement Charges<\/strong><\/span><\/li>\r\n<\/ul>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">Some credit card companies charge a flat fee for reissuing\/replacement of card. For example, SBI levies a flat fee of Rs. 100 for card replacement. But when a card is replaced due to any compliance then this fee is not imposed on the cardholders.<\/span><\/p>\r\n<ul style=\"text-align: justify;\">\r\n<li><span style=\"font-size: 20px; color: #000000;\"><strong>Overseas Transactions<\/strong><\/span><\/li>\r\n<\/ul>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">Credit card companies levy a transaction fee on all overseas transactions which is generally 3.5% of transaction value. For instance, you spend 100 Pounds with any foreign merchant and the current rate of conversion is 1 Pound = 90 INR then a transaction fee of 3.5% will be levied on Rs. 9,000 (100&#215;90) i.e. 315.<\/span><\/p>\r\n<ul style=\"text-align: justify;\">\r\n<li><span style=\"font-size: 20px; color: #000000;\"><strong>Cheque\/Cash Pick Up fee<\/strong><\/span><\/li>\r\n<\/ul>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">Cardholders can request for cheque\/cash pick up but a flat fee is usually charged. For example, ICICI Bank charges Rs. 100 per pick-up.<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\"><strong>Note: &#8211; All these charges may vary from bank to bank. Also, GST (Goods and Services Tax) will be levied on all taxable supplies (fees or charges) at applicable rates.<\/strong><\/span><\/p>\r\n<p><span style=\"font-size: 24px;\"><strong>Also Read:<\/strong><\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\"><strong>Surcharges<\/strong><\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">Surcharges are imposed on railway transactions as well as on petrol transactions. These charges also vary across different credit cards. Some credit cards come with a waiver of surcharge. For example, IndianOil Citi Platinum Credit Card provides full waiver of fuel surcharge on any bank\u2019s EDC machine. IRCTC SBI Platinum Card is an exception that waives of transaction charges on railway ticket booking.<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\"><strong>Add on cards<\/strong><\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">Add on cards, also known as supplementary cards can be issued to the family members of the primary cardholders upon request. These cards are usually issued free of cost. For example, SBI issues a maximum of two add on cards for every eligible primary card.<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">No extra credit limit is offered on this add on card as it has to be shared with the credit limit of the primary holder. Even though the card is issued to other family members, but the primary cardholder is liable for payment of charges and all transactions made from these cards.<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\"><strong>Rewards <\/strong><\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">Credit cardholders get rewarded for every rupee they spend. Credit card issuing companies reward customers to encourage spending. These rewards can be in the form of points or miles or vouchers.\u00a0<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\"><strong>Cash back<\/strong><\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">Certain online shopping websites come up with instant discounts or offer cashbacks on specific credit cards from time to time. By holding multiple credit cards of different companies you may increase your chances of grabbing these offers.\u00a0<\/span><span style=\"font-size: 20px; color: #000000;\"><strong>\u00a0<\/strong><\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\"><strong>Customers Liability in case of loss\/theft\/misuse of card<\/strong><\/span><\/p>\r\n<ul style=\"text-align: justify;\">\r\n<li><span style=\"font-size: 20px; color: #000000;\"><strong>In case of loss\/misuse\/theft<\/strong><\/span><\/li>\r\n<\/ul>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">Card holder is responsible for any transactions incurred on the card account prior to reporting of loss.<\/span><\/p>\r\n<ul style=\"text-align: justify;\">\r\n<li><span style=\"font-size: 20px; color: #000000;\"><strong>In case of fraudulent transactions<\/strong><\/span><\/li>\r\n<\/ul>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">RBI has passed regulations in order to limit cardholder\u2019s liability.<\/span><\/p>\r\n\r\n\r\n\r\n<div class=\"wp-block-image\">\r\n<figure class=\"aligncenter size-large is-resized\"><img loading=\"lazy\" class=\"wp-image-1311\" src=\"https:\/\/budwisefunds.com\/blog\/wp-content\/uploads\/2019\/12\/table.png\" alt=\"\" width=\"580\" height=\"134\" srcset=\"https:\/\/budwisefunds.com\/blog\/wp-content\/uploads\/2019\/12\/table.png 602w, https:\/\/budwisefunds.com\/blog\/wp-content\/uploads\/2019\/12\/table-300x70.png 300w\" sizes=\"(max-width: 580px) 100vw, 580px\" \/><\/figure>\r\n<\/div>\r\n\r\n\r\n\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">Overall liability as per RBI for fraudulent transactions: &#8211;<\/span><\/p>\r\n<ul style=\"text-align: justify;\">\r\n<li><span style=\"font-size: 20px; color: #000000;\">Credit card with limit up to 5 lakhs \u2013 Max Liability of the customer is Rs.10,000<\/span><\/li>\r\n<li><span style=\"font-size: 20px; color: #000000;\">Credit card with limit above 5 lakhs \u2013 Max Liability of the customer is Rs.25,000<\/span><\/li>\r\n<\/ul>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\"><strong>Death or Insolvency of a Cardholder <\/strong><\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">The entire outstanding dues shall become payable in full by the cardholder\u2019s family in the event of his death or in case of insolvency.<\/span><\/p>\r\n<p><script async=\"\" src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script> <ins class=\"adsbygoogle\" style=\"display: block; text-align: center;\" data-ad-layout=\"in-article\" data-ad-format=\"fluid\" data-ad-client=\"ca-pub-6495755798120621\" data-ad-slot=\"6499025866\"><\/ins> <script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\"><strong>Revocation\/Termination of Cardholder<\/strong><\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">Cardholder may at anytime revoke or end the Agreement. Credit card issuing company can also terminate or suspend the use of credit card at any time before any prior notice.<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">In both the cases the cardholder must pay all outstanding dues immediately.<\/span><\/p>\r\n<p><span style=\"font-size: 24px;\"><strong>Further Reading: <a href=\"https:\/\/www.hdfcbank.com\/personal\/resources\/learning-centre\/pay\/know-about-credit-cards\" target=\"_blank\" rel=\"noopener noreferrer\">HDFC Bank<\/a><\/strong><\/span><\/p>\r\n<p><img loading=\"lazy\" id=\"ayntkacc\" class=\"size-medium wp-image-562 aligncenter\" src=\"https:\/\/budwisefunds.com\/blog\/wp-content\/uploads\/2019\/08\/download-pdf-button-1-300x88.png\" alt=\"\" width=\"300\" height=\"88\" srcset=\"https:\/\/budwisefunds.com\/blog\/wp-content\/uploads\/2019\/08\/download-pdf-button-1-300x88.png 300w, https:\/\/budwisefunds.com\/blog\/wp-content\/uploads\/2019\/08\/download-pdf-button-1-1024x299.png 1024w, https:\/\/budwisefunds.com\/blog\/wp-content\/uploads\/2019\/08\/download-pdf-button-1-768x224.png 768w, https:\/\/budwisefunds.com\/blog\/wp-content\/uploads\/2019\/08\/download-pdf-button-1-1536x449.png 1536w, https:\/\/budwisefunds.com\/blog\/wp-content\/uploads\/2019\/08\/download-pdf-button-1-2048x598.png 2048w, https:\/\/budwisefunds.com\/blog\/wp-content\/uploads\/2019\/08\/download-pdf-button-1-1200x350.png 1200w, https:\/\/budwisefunds.com\/blog\/wp-content\/uploads\/2019\/08\/download-pdf-button-1-1980x578.png 1980w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/p>\r\n","protected":false},"excerpt":{"rendered":"<p>Joining Fee By Credit Cards It is a one-time fee charged by credit cards company for issuing the credit cards. It is usually the annual fee for the 1st year.&hellip; <\/p>\n","protected":false},"author":1,"featured_media":2087,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[10],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Credit Cards - All You Need To Know About Credit Cards<\/title>\n<meta name=\"description\" content=\"It is a one-time fee charged by credit cards company for issuing the credit cards. 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