Credit cards are no different from other things because they all have advantages and disadvantages, just like a coin. You should remember that, if used properly, a credit card will never harm your financial situation when deciding whether or not to purchase one. Instead, it will help you make your financial situation better.
For its incredible credit card advantages, HDFC is well known. However, there are a few causes for your concern if you apply for a credit card. For its ints and drawbacks of credit
Credit Card Advantages
Undoubtedly, credit cards have evolved into a necessary financial instrument. Here are a few factors that have contributed to the excitement surrounding them:
- The luxury of credit: Having a credit card a llows you to spend money you don’t have to pay back. You can use credit cards to temporarily borrow money from a bank and make the purchases you need to make. All you have to do is carefully manage your budget to pay back the credited amount on schedule. Additionally, you can take out as much credit as you need for up to 45 to 50 days without paying interest (within your credit limit).
- Reasonable EMIs: Are you using your credit card for large purchases? Don’t stress about paying back the enormous sum. You can spread your bill’s payment by breaking it into simple, inexpensive EMIs. As a result, you won’t have to worry about burning a giant hole in your wallet to pay your credit card bill.
- Develop financial health: Paying credit card bills on time helps develop a good financial situation. One of the key advantages of credit cards is that, with correct use, they can assist you in establishing and maintaining a line of credit. Banks can check your card usage and credit repayments using this line of credit.
- Raises credit score: Effective credit card use demonstrates your ability to manage your finances. Therefore, owning a credit card enables people to raise their bad credit scores. Credit cards are frequently employed as “credit builders” to develop and strengthen your borrowing practices. As you use your credit card responsibly, you will progressively be able to raise your credit score and demonstrate your ability to handle your loans and credit responsibly.
- Safety: Credit cards are a reliable and secure form of payment. Credit cards offer many more safety features than other financial products. In contrast to earlier credit cards, those issued today are protected by an EMV (Europay, MasterCard, and Visa) chip, which ultimately saves you from falling victim to any scams. Additionally, several banks and credit card firms have implemented several security measures to guarantee the security of transactions.
- Balance Transfer: One of the main benefits of using a credit card wisely is that it enables you to move money from one account to another, even if it comes from a different credit card provider. You can reduce the applicable interest charges with this option. For instance, if you have a debt from one credit card that needs to be paid but doesn’t have the money right now, you can transfer the balance to another credit card and take advantage of the lower interest rate charged by the new card. In some circumstances, you may benefit from introductory balance transfer interest rates of 0%. Sometimes, you can also be required to pay a fee to transfer the amount.
- Quick loan approval: Bank loans can also be obtained via credit cards. When your loan request is granted, the requested loan amount will be quickly deposited into your bank account. Your bank will transfer funds to your account up to your available credit limit. It would be best if you also kept in mind that having a solid credit/loan history will help your credit score.
Numerous extra credit card advantages are available for purchases made with a certain kind of credit card. You may receive these additional perks as reward points, money, or discounts that may be used on future purchases. Alternatively, you can purchase a credit card based on your requirements. This kind of credit card will provide extra benefits based on your spending.
- A record of expenditures: All purchases are recorded using a credit card. You may better manage your money and create a monthly budget by keeping a detailed record of your credit card purchases. You can see these specifics on your credit card bill.
Disadvantages of Credit Card
Credit cards could also have a few drawbacks despite their many advantages. You should utilize your credit card wisely because excess of anything is dangerous. Here are a few things that could go wrong if you don’t use a credit card wisely.
- Overspending: Because credit cards give you a lot of credit, there may be times when you make unwise purchases with the available credit and later find yourself in debt.
- Solution: You should not use more than 50% to 60% of your credit limit to prevent overspending on your credit card. You can avoid going over budget and getting into debt by ensuring this and being a little more frugal with your unneeded spending.
- Fraud: Although credit cards are among the safest financial instruments, they could be the target of online scams. Your credit card information may be stolen by fraudsters or thieves who misuse it. Additionally, the cardholder must notify the bank within three days of the transaction’s occurrence if a third party performed the fraudulent transaction.
- Solution: You might disable any international transactions on your card to protect yourself from such fraudulent activities. You should also avoid opening emails or communications that seem strange to you. Additionally, avoid giving out your credit card to anyone or sharing your PIN or credit card information with anyone.
- High-Interest Rates: The amount charged with a credit card is subject to a very high-interest rate, which could cause you to accrue significant debt. However, this interest only applies when the credit amount is paid late.
- Solution: You may quickly eliminate the excessive interest fees on a credit card if you keep paying your bills on time.
- Surcharges: You could be required to pay an additional fee known as a surcharge when using a credit card to make a certain payment. However, this price is typically charged for purchases of fuel and train tickets.
- Solution: A few credit cards, including the gasoline credit card, waive the fuel surcharge. The surcharge fee is typically eliminated when the transaction value falls within a specific range that the bank has established. The amount of the monthly surcharge waiver may also be restricted.
HDFC Bank Re-Launches Millennia & Other Credit Cards
On September 19, 2021, HDFC Bank re-launched three entry-level credit cards. Everything you need to know about recent changes and upcoming events is below.
With its recent big update, HDFC Millennia is now a stylish and easy-to-use credit card for novices. New features include:
- Points validity was extended to two years from one.
- Additional quarterly benefits: 1K in coupons for 1L spent
- Accelerated Rewards: 5% cashback on a limited number of merchants (Amazon, BookMyShow, Cult. fit, Flipkart, Myntra, Sony LIV, Swiggy, Tata CLiQ, Uber & Zomato; maximum cap: 1000 rs per billing cycle).
- 1% cash back on all purchases (incl. wallet loads)
- The minimum transaction limit has been eliminated.
- The minimum number of points needed to redeem has been lowered to 500 from 2000.
- It is a thorough comparison of the new and old Millennia credit cards.
Overall, the HDFC Millennia credit card is now in excellent form and competitive with other issuers. Ideally, if you spend less than $1L per quarter, you could save roughly 2% on expenses. Along with Millennia, HDFC Bank has updated the characteristics of several introductory credit cards like
- Credit card with Moneyback facility
HDFC Credit Card Features
Following are some characteristics and advantages of HDFC credit cards:
- You can take advantage of special discounts, points, and deals.
- Your credit card will be immediately banned if you report any suspicions of credit card fraud to your bank.
- You can choose from various credit cards offered by HDFC Bank to meet your needs.
- You can raise your credit score by paying your payments on time and keeping your credit card usage under 30%.
How to pay HDFC Credit Card Bills?
Customers may choose from the following payment methods:
- Netbanking at HDFC Bank
- Netbanking at Non-HDFC Banks
- HDFC Bank’s mobile app
- Funds Transfer via ATM
How to Register for HDFC Credit Card Net Banking?
If you already have an HDFC Bank account, you can sign up for HDFC Credit Card Net Banking services by following the below instructions.
- Customers must use their customer ID and internet password to log into NetBanking.
- Select the credit card tab from within the Net Banking account.
- Select the “Register New Card” feature to add your new card.
- Type in your card information, including the card number, ATM PIN, and expiration date, and then click “Submit.”
The process to Activate HDFC Credit Card Online Transactions via WhatsApp
The steps to take to activate online transactions over WhatsApp are listed below:
- Make a note in your contacts to add the HDFC WhatsApp number (7065970659).
- WhatsApp the number with the message “Manage My Credit Card.”
- A message with multiple choices will be delivered to you.
- Click on “Online (E-Commerce) Transactions.” You must provide the number that corresponds to the option’s availability.
- The registered cellphone number will receive an OTP; enter it.
- The final four credit card digits must then be input.
- A status message will appear.
- A choice to activate online transactions will be given.
Should You Apply for A Credit Card?: The Final Call
If used wisely, getting a credit card would be the perfect move. The ease and luxury of using a credit card are two of the most popular and beneficial features. They also assist you in maintaining a good financial history, which eventually works in your favor when you submit loan applications. However, you must learn how to use your credit card wisely. Your credit score will suffer if you don’t do this.
In conclusion, despite all of its benefits and drawbacks, you should purchase a credit card for yourself. Doing so will eventually enable you to take advantage of all the advantages a credit card offers. Include habits like timely payment of credit card bills and responsible use of credit card charges in your financial routine as you go along.
FAQs on HDFC Bank Credit Cards
Can I get a credit card from HDFC online? What advantages do I have?
You can apply for an HDFC credit card online, and in three simple steps, you’ll receive an e-approval. Online candidates can also take advantage of exclusive promotions like lifetime free credit cards, Rs. 250 cashback, and 5X rewards points on purchases for the first three months.
How can I raise the credit card limit on my HDFC account?
You can send a letter with your signature asking for your credit card limit to be raised. You must also give documentation of your income. You must also include a self-attested copy of a recent pay stub if you are a salaried individual.
What paperwork is needed to submit my online HDFC credit card application?
Address information for the applicant, a PAN card, a scanned copy of your ID, and address documentation.
What minimum wage must I earn to qualify for an HDFC credit card?
If you are a salaried individual, you must make a minimum of Rs. 12,000 monthly. If you work for yourself, your annual payment must be at least Rs. 2 lakh. You’ll also need to keep your credit score high.
My application for an HDFC credit card is being processed. Can I monitor the progress online?
Yes, by entering your application reference number, mobile number, or date of birth, you may instantly check the status of your credit card application on the HDFC website.
Are online credit card statements from HDFC Bank available?
You can access your HDFC credit card statements online for up to six months using the Credit Card Net Banking feature.