Between 2018 and 2019, the total number of credit cards in India increased by a sharp 27%. Such a robust growth indicates that more individuals are now inclined towards utilising credit cards as their preferred mode of payment. The same can be due to the numerous benefits and greater conveniences that accompany them.
Individuals who are new to the concept of digital payment can benefit from such payment cards as well. Nevertheless, to make the most of it, they need to become familiar with fundamentals like – what is credit card, its features and application process beforehand.
What is a credit card?
Credit card is essentially plastic money or a payment card that enables users to borrow money to make transactions up to a pre-specified limit known as the credit limit. With the help of the credit card, users can meet a variety of financial requirements instantly. It enables users to make digital payment against their purchases; wherein, the purchase value gets directly deducted from their available credit limit in your account.
Every time a user purchases through his/her credit card, the existing credit limit reduces. These cards are referred to as open-ended credits or revolving credits as users can continue to borrow funds against their credit limit. Unlike regular loans, card users can avoid paying interest on their credit card transactions by paying the card bills within the due date.
Once individuals become familiar with what a credit card is, they can proceed to find out about its application process.
Read Also: How to Apply for HDFC Bank Credit Card
Credit card application process
These following steps highlight how to apply for credit card. The steps denoting the online process of application including documentation.
Step 1 – Visit the official website of a trusted financial institution.
Step 2 – Navigate to the credit card page.
Step 3 – Look for a suitable credit card that matches your requirements and spending habit.
Step 4 – Look for the ‘Apply for Credit Card’ option.
Step 5 – Fill up the online application form with required details.
Step 6 – Submit the required documents to initiate the verification procedure.
Additionally, individuals should learn more about the risks associated with online credit card transactions and find suitable remedies or precautionary measures against the same. Doing so, they will be able to get the most of their credit card without being concerned about cyber threats.
Read Also: All You Need To Know About Business Credit Score
Tips to shop safely online
Here are a few tips that prove useful in ensuring safe credit card transactions online –
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Shop from trusted websites
Card users should always choose known and trusted websites to shop online. It will lower their chance of being subjected to credit card frauds and will ensure a safe shopping experience. Also, they should avoid clicking on unsolicited emails and shopping invites to remain protected against phishing scams.
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Refrain from using public network or system
Public Wi-Fi and computers are relatively less secure than home networks and run a higher risk of card data stealing. This is why cardholders should always avoid making card transactions online while using public networks or systems.
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Protect your device against malware
Card users should protect their mobile phones and computers with reliable anti-virus and anti-spyware protection software. Also, they should use the latest browser and antivirus tools to secure their online shopping experience.
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Go with Little Personal Data
No e-tailor of online shopping needs your date of birth, social security number and many more things. It could be lots of damage, if you just overshare your personal details. Always remember, the more the scammers get to know you, the more the problem will be there. At last, it is just to say, avoid oversharing of your personal data if possible.
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Pay with Credit Over Debit Card
It is advisable to shop with credit card over debit card. The simplest reason behind it is, if you use a debit card that is compromisable, then it could be unsafe from scammers as they may have direct access to your bank accounts and funds. ON the other hand it’s not like the same with a credit card. According to the credit billing act, if you get scammed, you may only claim a specific amount or a percentage of that number. So, even if you are not much happy with your purchase, a credit card is still essential. With this, pay your credit card bill, only when it is you have accurate charges.
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Check Statements on Regular Basis
It would be suggested to go for a check in every holiday season and have an electronic statement of your card. Don’t wait for your credit card bill at the end of the month. Even if you are using paying through originating websites like paypal and another, look for fraudulent charges if any.
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Prefer secured websites and online stores
They should make sure to use secured websites to protect their credit card information from being stolen. One of the effective ways to protect credit cards from being hacked is shopping through websites whose URL begins with ‘https://’ and displays a padlock sign.
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Shop through a credit card carrying integrated security features
Individuals should also consider using credit cards that come with enhanced security features so that their online shopping experiences are safe and secured. For instance, cards like Bajaj Finserv RBL Bank SuperCard come with robust security features and also include fraud liability cover to tackle risks of cyber thefts. Other than these, users may also consider availing a card protection plan for added security.
The card issuer also provides their customers with pre-approved offers to facilitate the smooth experience of availing finances. Generally, such lucrative offers apply to financial products like credit cards, personal loans, business loans, etc. Check your pre-approved offer online by just entering your name and contact number.
Credit cards have emerged as one of the most proficient financial tools to ensure fast and hassle-free transactions. However, to make the most of such credit cards, applicants should be familiar with what a credit card, its features and terms of use.