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Bill Pay From Credit Card

IndianMoney.com Research Team | Posted On Thursday, January 31,2019, 05:43 PM

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Bill Pay From Credit Card

 

 

What is a credit card?

Credit card is a financial instrument issued by banks and credit card companies, which can be used by borrowers to make monetary transactions both offline and online. It is spend now and pay later. Credit Card is one of the popular forms of debt. The billing cycle of Credit Cards are typically 30 days + a grace period. Periodic repayments must be made to avail continued services of credit card.

As the utilization of benefits of a Credit Card is in the form of debt, the repayment involves interest. Lenders don’t charge interest if you repay within a certain period called billing cycle + grace period. Borrowers can utilize their Credit Card up to a certain amount called Credit Limit, which is predetermined by the lender.

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SEE ALSO: Credit Score India

Bill Pay From Credit Card

Documents required for Credit card

An applicant must produce a document for identity proof, age proof, address proof and latest photograph along with a duly filled application form.

Following documents are accepted as Identity Proof:

·       Aadhaar Card

·       Voter ID

·       Valid Driving License

·       Valid Passport

·       Class X Marks Card

·       PAN Card

Following documents are accepted as Address Proof:

·     Electricity Bill

·       Water Supply Bill

·       Telephone Bill

·       Ration Card

·       Bank Passbook

·       Valid Passport

·       Voter ID

SEE ALSO: How To Improve Credit Score?

Credit card eligibility criteria

Below mentioned are the general eligibility criteria to avail credit cards in India:

·      The applicant be an Indian citizen.

·      The applicant must possess PAN.

·      The applicant must be at least 18 years.

·      The applicant must have a good credit score (for unsecured credit cards).

Types of credit cards

Below mentioned are the types of credit cards:

1) Secured Credit Cards: Secured cards require borrowers to furnish collateral in the form of fixed deposit against credit card. Generally, credit limit of these cards would be 80% of fixed deposit. The borrowers must make timely repayments. Defaulting would result in lender recovering the loan by liquidating the security furnished. Secured Credit Cards would be issued to those individuals who have a bad Credit Score. They can improve their credit score by availing secured credit cards and then make timely repayments.

2) Prepaid Credit Cards: These cards require borrowers to first load money in their credit card and then utilize the same. The credit limit is renewed only on loading money to the card. Using prepaid credit cards have no impact on credit score. Prepaid credit cards work on similar lines of debit card, except the fact that prepaid credit cards don’t have a bank account attached.

3) Credit Cards For Women: These cards are specifically designed for women. These cards offer various benefits like discount on specific women related merchandise, cashbacks and so on. Women using these credit cards get bonus reward points, waiver on fuel charges, discounts on insurance premiums and so on, by using the credit card to transact at specific merchants.

4) Business Credit Cards: These are cards tailor made for companies/organizations. Typically, these cards have a very high credit limit. The business owners are held responsible if the company defaults. These cards offer various benefits to the business owners like cashback, discounts and so on from selected merchants.

See Also: What is E-way bill?

Advantages to have a Credit Card

·    Universal acceptance: Credit cards can be used at all merchants who accept debit cards.

·      Benefits: Credit card lenders and merchants offer benefits like cashback, discounts, reward points and so on.

·      Buy now, pay later: If you are low on cash and in need to buy something, then you can pay later by shopping with a credit card.

·      Build credit score: If you are having a bad credit score and in need of taking loans to fulfill your dream of purchasing a house, then you can build credit score by using a secured credit card.

·      Interest free period: Credit card lenders don’t levy any interest if you pay within a period called billing cycle + grace period.

·      Welcome bonus: Credit card lenders offer various welcome bonuses on availing a credit card. This includes free vouchers, gifts and so on.

Steps to pay the bill from Credit Card:

Paying a bill both offline and online from a credit card has exactly the same steps that a debit card has.

For offline payment of a bill through credit card, below mentioned steps must be followed:

·      Select the required goods and get it to the biller.

·      The biller bills it and asks for your credit card.

·      Hand over your credit card to the biller.

·      The biller would swipe your credit card on the Point of Sale, POS machine.

·      Verify the billing amount and enter the pin of credit card.

·      Bill payment would be made and the biller would hand over the customer copy of the sale.

For online payment of a bill through credit card, below mentioned steps must be followed:

·      Select your goods and click on the ‘buy now’ button.

·      Verify the billing amount and click on ‘pay now’.

·      You would be directed to a payment gateway.

·      Choose ‘credit card’ as the payment mode.

·      Enter your card details.

·      Your registered mobile number would be receiving an OTP, enter to validate.

·      Your bill is paid, the payment gateway displays a transaction ID, note it down for future references.

SEE ALSO: Check Credit Score Online

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