The credit card holder gets authorization from the bank to purchase goods and services up to a limit which is called credit limit. The holder provides the essential information to a vendor, the bank reimburses the vendor and at last the credit card holder has to repay the bank through monthly installments. If you cannot pay the entire amount during the time frame, the credit card issuer can charge interest fees.

Each bank has own credit card policies for issue. A customer can apply for both secured and unsecured credit card, whether it depends on their individual repayment history.

While applying for a secured credit card, the applicant needs to deposit an amount of cash or against your fixed deposit equivalent to his/her credit limit desired. If the holder cannot make sufficient payments, the issuer uses the deposited amount to satisfy the credit card debt.

Banks issue an unsecured credit card to an applicant who has a good credit history and if the applicant fulfills the eligibility criteria defined by the bank. The issuer determines the credit limit studying some factors of the applicant such as his credit history and previous payment record.

The main advantage of holding a credit card is It gives you instant good purchasing facility when you do not have cash in hand. Even most vendors do not accept debit card or cash from the customers. Then you can pay through your credit card.

A credit card holder can use his/her credit card for online services like hotel reservations, car rentals and airline or railway ticket reservations. Those of who has not a credit card need to pay cash or several forms of identification to guarantee their reservations. The frequent travelers and business professionals need a credit card in various situations.

Insurance coverage for theft or fraud is also offered by some credit card providers. If one loses a credit card and it is used by some illegally the card holder is not responsible for unauthorized charges. The card owner can authorize others to use his/her cards for purchase and online payments for airline booking or hotel reservation.

We suggest you to read the terms and conditions regarding credit card application and uses. Each bank has own interest fees for credit card users. So, consult with us to take the service from the best provider.