FAQ Category: Utility of Credit Cards

A plain vanilla credit card is a simple and standard card that doesn’t offer any special perks or rewards. You can use it for regular purchases, and it allows you to borrow money from the card issuer, which you’ll need to pay back later.

A fuel credit card is made for buying fuel or gas. It gives rewards, cashback, or discounts on fuel purchases, which is great for people who drive often and want to save money on fuel expenses.

A business credit card is specifically for businesses to handle their expenses and purchases. It helps keep personal and business finances separate, tracks business spending, and often comes with perks like rewards on office supplies or travel expenses that cater to business needs.

Cashback credit cards give you the opportunity to earn money back from your purchases. They pay you a percentage of what you spend or reward you with points. To make the most of them, it’s essential to pay off your full balance every month and avoid going over your credit limit. Otherwise, the interest charges can cancel out the rewards you earn.

A Charge Card works similar to a Credit Card, but with a key difference: you can’t make partial payments. You must pay the entire bill in full by the due date. It doesn’t have a specific spending limit set in advance, allowing flexibility based on your financial standing.

The Kisan Credit Card scheme was launched to provide farmers with Kisan Credit Cards based on their land holdings. This way, all banks could follow the same system, making it easy for farmers to use these cards to buy agricultural essentials like seeds, fertilizers, and pesticides. It simplifies the process of accessing credit and helps farmers meet their farming needs more efficiently.

A prepaid card is a card that you can use for making payments. You purchase the card and load it with a specific amount of money. Then, you can use the card to spend up to that amount. It is also known as a prepaid debit card or stored-value card. It’s like having a set budget on a card for your expenses, and you can’t spend more than what you’ve loaded onto it.

Secured credit cards are a special kind of credit card that requires a cash deposit as a guarantee. This makes it safer for the card issuer to lend money to people with low or limited credit history. With secured credit cards, these individuals can use the card responsibly to build and improve their credit score over time.

These cards give you points or miles as rewards when you make purchases, whether it’s for travel or everyday expenses. As you collect enough points or miles, you can use them to get rewards such as free flights or hotel stays. It’s like earning “credit” for spending, and you can exchange these credits for exciting travel benefits.

A credit builder credit card is designed to assist people who are starting with no credit history or want to improve their credit rating after being rejected for credit. It helps them build or rebuild their credit by using the card responsibly and making timely payments. It’s a helpful tool to establish a positive credit history for future financial opportunities.