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At each step of the usage of the credit card you will face various security processes. These measures will make certain that the usage of the credit card is safe and that someone else does not misuse this. Often the card security measures seem to slow things down for you. It might require use of various passwords or completion of a specific procedure, making it often difficult to navigate.

You have the choice of exchanging your reward points for various gifts at the time of redemption. One of the biggest categories of benefits available for you is in the form of gift vouchers of various stores. There is an additional choice that you will get when you select a voucher for redemption. This choice arises because of the fact that the gift voucher does not limit your choice to a specific item that you might select in the normal course of redemption of points.

Depending upon your spending and the credit card rules, there are specific reward points that you will earn. These points are then available for your use once the minimum number of points is crossed. This requires you to spend them carefully in order to get the best value out of them. There are several gifts that are offered by the card-issuing banks for which the points can be redeemed. In this condition, only the specified number of points can be redeemed in order to get a gift. There are various levels of points that are required for the redemption for each gift.

Whenever you make an expense on a card you become eligible for earning reward points on the card. As you make use of the card the points start to accumulate and in this way the process of accumulation of the points begins. The number of reward points that you will get for a particular spend depends upon the conditions of the card. Thus there might be a case where a card offers 2 points for Rs 100 spent while some other card offers 1 point for the same amount used.

Cash limit is the part of the credit limit that will be available for you as a means of withdrawal in cash. You can get cash up to this amount by using your credit card.Your cash limit will always be lower than your credit limit. It is a certain percentage of the credit limit, normally not more than 20%.You can use the cash limit by going to an ATM that will accept the credit card and then withdraw cash from the machine. This transaction is included in your total card expenses which is seen in the credit card statement sent to you monthly.The cash limit on your credit card can be used as an emergency route for funding some expenses when you do not have the necessary cash.

The credit limit on a credit card is the maximum amount up to which you can use the card and which the bank will make extend the credit facility after which you will have to repay the amount.The credit limit is decided after taking into consideration your income, your current job and position, your credit behaviour among several other factors that are decided by the bank issuing a credit card.A credit limit is not fixed forever once it is decided, but it keeps changing over a period of time. Depending upon the developments, including your track record, the credit limit can be raised and this will give you a higher limit to spend.The credit limit includes all the expenses that can be made using the credit card, which also comprises the cash limit. Thus it represents the final limit for you.

Credit card statement is a statement sent by a credit card-issuing bank to you, informing about the transactions made on the card in the form of expenses and payments received resulting in the final amount remaining to be paid.A credit card statement is sent to you on a monthly basis. This makes the payment due date for you also monthly.The credit card statement will list out all the expenses made during the month using the specific card. This will enable you to get a complete look at all the figures at one place. There are also some items that will reduce the outstanding balance on the card. The payment made for the previous bill plus some reversal of charges or other expenses will help reduce the bill amount for you.

Interest rates on credit card come into effect when you do not pay back the full amount outstanding on the credit card by the due date. You are then charged interest at a specified rate on the amount outstanding till you make the full payment.
The interest rate might not seem to be very high to you because it is usually mentioned as 2.49% or 2.95%. But this is a monthly figure and hence the actual annual cost for you will be very high on conversion.
If you convert the applicable monthly rate to an annual figure then a figure of 2.49% per month works out to 34.33% on an annual basis, 2.95% is 41.74%, and 3.14% is 44.91%. Once the interest rate becomes applicable then not only the existing amounts outstanding on the credit card but even future expenses are charged the interest even though there is no default on the payment made on these future expenses.

One of the main factors that determines the credit card selection is the bank that is offering the card and the credit card association that the bank belongs to. A strong bank with the necessary financial strength and good business practices is a desirable option for cardholders. Choosing the category of your credit card (silver, gold, platinum, etc.) depends on a number of factors like your lifestyle, your credit limit requirements, special benefits desired, etc. The premium cards usually come with a higher credit limit, enhanced reward points programme and special benefits like concierge services. This is the rate that you will be charged if you do not pay the full amount of the bill before the due date. A lower interest rate is always better in case you slip into the interest cycle, and hence you should look for a card that provides lower rates over the long term.

Credit cards are a piece of plastic that enables their holders to use credit from a bank. You as a cardholder can make various payments for your expenses by using the credit card, and you can then pay back the amount at a later date. Banks usually issue credit cards for their various customers. They consider the financial position of a customer and then determine the maximum amount to set the limit on the card. Normal people like you and me can apply for and hold a credit card. The process that has been specified for acquiring a card has to be followed, and when the bank is satisfied with your personal and financial circumstances it will issue a credit card to you. The cost involved in owning a credit card is the joining fee that is often waived. In addition, you can have an annual fee plus there will be an interest cost if you fail to pay back the amount on time.