Credit card is a facility offered by the bank, which allows you to spend money first and pay it later. Nowadays credit cards are being used a lot.
New Delhi. Credit card is a facility offered by the bank, which allows you to spend money first and pay it later. You can make online or offline payment by credit card. Nowadays credit cards are being used a lot. Most people have started using it. It meets the needs of money on time.
Explain that banks also provide loans on credit cards. This loan is similar to a personal loan. Different banks provide loans on credit cards to their customers. Generally, the annual interest rate on a credit card is between 35 percent and 40 percent. Therefore, if you have already taken a loan on a credit card or are thinking of taking a loan. So you must pay attention to things like interest rate to late fees.
What if I do not pay on time?
If you are not able to pay the loan on time, then your chances of getting a top-up loan will be reduced. Not paying on time can cause your civil score to deteriorate.
What happens when payment defaults?
If you do not pay the installment of the loan taken on credit card in time, then it will be considered a default. Not filling the EMI on time has a worse effect on the credit score of the card holder. Therefore, repay the loan installment on time.
Must keep in mind the processing charge
When a loan is selected for a credit card, a processing fee is levied on the loan amount. The processing fee for a credit card loan is usually 1-5%. How long will the loan holder choose the card holder. It is maximum for 24 months. It also has the facility of pre-closure. You have to pay a pre-closure charge.
good the record should be.
Credit card holders also get pre-approved loan easily in case of emergency. But for this your record should be good and this is when you have paid the old bills on time. There is no documentation of any kind in pre-approved loans, which is why it is processed as soon as possible. A loan is available within a few hours.
