Having a credit card is a great way to manage your finances during a cash crisis. It allows you to access funds, make purchases, and repay the amount at a later stage. The best part is that they are widely accepted and offer great financial freedom if used judiciously.
You must have experienced forced selling of credit cards by banks.
But now, as per the rule, if you haven’t accepted your card via OTP. Then, banks cannot issue credit card.
After, issue of credit card, if your haven’t activated it within 30 days.
Then, after 30 days the card will be automatically closed.
You will not be able to use it in future.
If bank has forcefully issued the card.
Then, you can submit application to close it, without any charges.
Types of Credit Cards in India
- Rewards credit cards – Cardholders can earn rewards points on all their retail, online, etc. card transactions. Apart from this, they can earn reward points as welcome gift, birthday gift, renewal bonus, etc.
- Secured credit cards – A secured credit card is one which is issued against an asset in your name (example: Fixed Deposit).
- Cashback credit cards – Cashback can be earned on bill payments, movie ticket bookings, retail purchases, dining bills, grocery purchases, etc.
- Student credit cards – Student credit cards are “starter credit cards” of sorts specifically geared to young people with a limited credit history.
- Travel credit cards – These cards do not just offer travel benefits in India, but abroad as well. Most banks have tied up with airline companies or travel companies to offer travel credit cards.
- Business credit cards – These are offered to business establishments, corporates and other financial institutions where the employer can offer these cards to their employees and also conveniently manage the finances on the card.
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