Are You A Credit Card User? Check Out For Top 5 Benefits Of Using Credit Cards

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Credit cards allow us to make desired purchases and expenditures without worrying about any liquidity issues. These can help us to maximize the value of the purchases we make by offering benefits like cashback, reward points, special discounts, etc. Most cards offer these at no extra cost as long as the total outstanding dues on the card are cleared in full and on time in every billing cycle.
While many of us use this payment tool often, there are chances that we do not know some of the important and finer aspects of credit cards. Here is a walkthrough of some of these points that can help users in making informed decisions.
Credit cards against FD
Banks and credit card issuers generally do not offer credit cards to all applicants as they require applicants to meet specific eligibility requirements around minimum income, credit score, occupation, etc. Applicants who don’t meet all the eligibility criteria can approach the bank to request a secured credit card against fixed deposits. Banks may grant credit cards with credit limits of up to 90% of the FD value subject to certain terms and conditions. However, ...
... if one defaults on the credit card dues, the bank reserves the right to recover the dues by liquidating the FD set aside as collateral.
Pre-approved loans on credit cards
Many banks extend pre-approved loans on select credit cards to their customers. These unsecured loans carry interest rates ranging from 12% to 30% p.a. The EMIs on these loans are added to the total credit card dues and are also linked to the card’s credit limit. Since these are pre-approved loans, they are disbursed quickly and may allow easy borrowing for customers who are facing a financial emergency. Banks that issue such loans often advise customers to read the loan fine-print and assess their affordability to ensure that the credit limit is sufficient to accommodate other card expenses.
Zero annual fee credit cards
Credit limit
Expenses converted into EMIs
Reference

https://www.creditmantri.com/article-are-you-a-credit-card-user-5-beneficial-card-features-that-you-must-know/

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