What and how to get a credit card: Many banks and financial services providers in Bangladesh are currently providing credit card services. Let’s find out what is a credit card, how many types of credit cards, how to get a credit card, what credit card costs, etc.
What is a credit card?
A credit card is basically a chip-based plastic card (usually) that contains information on the credit card holder’s name, credit card number, expiration date, CVV, credit card holder’s signature, and customer care center details. Credit cards basically ensure the convenience of the cardholder to spend money. When a user uses a credit card to make a payment, the money is not deducted from the savings / current account.
Instead, the money spent by the bank or card-issuing company gives you the benefit of the rest of the transaction. In other words, the function of the credit card is to provide the rest of the transaction facility to the users. Each credit card has a pre-determined credit limit. This means that after a certain amount of transactions, money can no longer be spent on credit cards. It can be used again after paying the credit card bill. Usually one month’s credit card bill at some point in the next month
Differences between credit, debit and prepaid cards.
Credit cards, debit cards, and prepaid cards – these three cards have different principles. Let’s find out the difference between credit, debit, and prepaid cards. The use of debit cards is much easier to understand. A debit card allows you to make transactions using money kept in your bank account. If you do not have enough money in your bank account, you will not be able to transact with a debit card. Credit cards, on the other hand, keep separate accounts for your transactions and allow you to use them as balances or loans. Credit card payments are then repaid to the card-issuing bank or institution. Prepaid cards are very different from the other two cards. The prepaid card is basically a deposit in advance for certain work expenses. Prepaid cards are mainly used to avoid the risk of overcharging. Prepaid cards like credit and debit cards can be used in almost all cases.
What is an international credit card?
A single currency credit card issued by your bank will not work outside the country even if it works within the country. This requires an international credit card. These are usually dual-currency credit cards. The currency consists of the Bangladeshi taka and the US dollar (two currencies in total). However, in Bangkok, you may also use the euro or other currencies as currency. When you apply for a regular credit card, you must notify the relevant bank or card service representative and they will apply for an international card. However, if you want to spend foreign currency such as dollars, first you have to endorse a certain amount of dollars in the credit card through your passport. International Credit Card or International Credit Card is accepted in almost all countries of the world. International credit cards make it easier for you to travel around the world
Advantages and disadvantages of credit cards.
There are numerous benefits to using a credit card. Some of the notable advantages of credit cards are:
- No one has to go to the door for money to buy something expensive immediately.
- Using a credit card is more secure than using a debit card or check. Credit card refunds can be easily requested if any inconsistency is found in the payment gateway or merchant service.
- Credit cards are available at very low interest rates, often at zero percent interest.
- In case of credit card expensesit is possible to earn income from expenses through various offers
- If you feel the burden of usingthe card, there is an opportunity to change the type of card.
- Shopping using a credit card and paying bills on time can help increase the credit cardholder’s bank eligibility index or CIB record.
- Reward points are also available in many cases when shopping using a credit card
In the midst of so many benefits, there are some downsides to credit cards. Some of the potential disadvantages of credit cards are:
- As the way of shopping becomes easier, the tendency to spend money unnecessarily increases
- Failure to pay the credit card bill on time may result in higher interest charges
- Whether or not to use a credit card, it is mandatory to pay the applicable annual fee for the credit card.
Eligibility to get a credit card
There are many questions about who can get a credit card. Eligibility to get a credit card is very common in Bangladesh.
Only employees, businessmen, or other professionals who have an Income and Valid Tax Identification Number (TIN) can apply for a credit card. In other words, the qualification to get a credit card is:
- National Identity Card
- TIN Certificate
- Appointment letter or salary certificate in case of employment And 3 months bank statement
- Trade license, Memorandum of Association 3 months bank transaction statement for traders
Also, if you have a fixed deposit with a bank and they agree, you can apply for a credit card with that bank. The bank or card service provider will decide after analyzing your information about the credit limit of your credit card.