Credit card

 

What is Credit Card

A credit card is a type of credit facility, provided by banks that allow customers to borrow funds within a pre-approved credit limit. It enables customers to make purchase transactions on goods and services. The credit card limit is determined by the credit card issuer based on factors such as income and credit score, which also decides the credit limit. Bonus tip: use the free credit score checker tool to check your current score.

The credit card information includes credit card number, cardholder’s name, expiration date, signature, CVC code, etc. The best part about a credit card is that it is not linked to a bank account. So, whenever you swipe your credit card, the amount is deducted from your credit card limit, not your bank account. You can use it to pay for food, clothes, take care of medical expenses, travel expenses, and other lifestyle products and emergency services. 


Advantages of Best Credit Card

After knowing what a credit card is, let us find out the benefits that come with it. Depending on your needs, a credit card comes with a host of features and benefits to save money while making transactions. Here are the top benefits to help you to know more about credit cards: 

  • Hassle-free shopping experience

The benefit of having the best credit card is that it has made shopping easier and convenient. You no longer need to visit malls or stores to make purchases. With your credit card, you can make big purchases from the comfort of your home. It can help you avoid putting any burden on your monthly budget with a credit card. 

A credit card allows you to buy products and services on low-cost EMIs. Another option that has become popular is the Buy Now, Pay Later, which is ideal for salaried borrowers with fixed monthly incomes. 

  • No need to carry cash

Credit cards are the best alternative to cash, as it eliminates the need for carrying cash. Credit cards are accepted almost anywhere you go. If you do not have cash, you can simply use your Kotak Mahindra credit card to cover your expenses and repay the outstanding amount at the end of the month. The process of making a transaction is simple. All you have to do is swipe your card at the PoS terminal or enter your card details to make online payments. 

  • Rewards, cashback, and offers

The best credit card comes with rewards and cashback that fits your needs and requirements. Depending on your credit card issuer, your credit card comes with a host of special discounts, cashback, or rewards points for purchases made through it. Before getting a credit card, it is imperative to assess your needs. For instance, if you are a frequent traveller, it would be wise to choose a credit card that offers free airport lounge access or have travel insurance. Also, there are credit cards that offer special discounts on shopping, travel tickets, and accommodation. 

  • Easy cash withdrawal
  • Another benefit of having the best credit card is that it allows you to withdraw cash whenever the need arises. However, it is worth noting that using your credit card to withdraw cash follows a small fee that you will have to bear while repaying your outstanding amount.
    • Widely accepted

    The best thing about a credit card is that it is accepted worldwide, as it is the most common mode of payment across the world. You can use your Kotak Mahindra credit card to make international bookings and payments at airlines, restaurants, hotels, stores, and petrol pumps with ease. It makes your travels around the world convenient. However, using your credit card abroad can cost you high foreign transaction fees and high foreign exchange rates.


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