Credit Cards can be an immense boon when your hit a rough patch financially. It will not only give you the much needed breather, but also provide you with the means to get back on your own two feet without relying on anybody else.
No doubt, when you own your first credit card, it can be exciting, tempting, and intimidating.You can reap plenty of benefits, with each expenditure you make. Moreover, it opens the window to various other financial offering.
But be warned, Credit Cards can become the proverbial double edged sword. Not only will it protect you, but it can also harm you, if not utilised wisely.
To ensure that you make the most of your first Credit Card, here are some rules you must remember before you start the process to own one:
- Consider and compare the fees, interest rates and benefits
All Credit Cards come with different fees, interest rate and several benefits. The ideal Credit Card you would want to choose should have the lowest fees, lowest interest rates and benefits that match your financial needs. While there may not be a single Credit Card option that will offer you the best of all of these three features, you can consider and compare the available options that will match your usage and needs.
- A Credit Card is a big responsibility
Credit Cards work very simple. The issuing company will lend you money on each expense you make on your card. After a certain duration or even an expenditure limit, you will be responsible to pay off the borrowed funds within a given time frame. If you fail to do so, you will attract high interest rates on the payment delay.
To know how Credit Card works, clickhere.
- Stick to one Credit Card:
When you apply for a Credit Card, there are chances that you will receive many offers for different credit card types. However, this doesn’t mean that you have to sign up for each offer you receive. As a first time owner, it is best to opt for a single card. You can choose the right credit card, based on severalfeaturesthat match your needs. Remember, the more the number of cards you own, the higher are the chances you increase your debt.
- Opt for a low credit limit
Spending on your Credit Card can be tempting as it offers you a high expenditure. However, high expenditures equals to high repayments, which you may not afford. This is where your credit limit can help you. Depending on your credit limit, you can calculate the estimated amount you can afford to spend without going over your repayment limit. It also helps you cultivate healthy expenditure habits.
- Pay off your entire Credit Card balance before the end of your billing cycle:
You need to pay off your card balance within the given credit card cycle, or else you will earn late charges. First time credit card holders normally get an interest free grace period to pay off their balance. Once this grace period is over, the longer you delay paying off your balance, the higher will be the late charges. Paying off your balance within the given period will not only help you earn a good credit report, but also help you inculcate good payment habits in the long run.
- Use your Credit Card wisely and regularly:
You may have bought a Credit Card for emergency purposes. However, if you don’t use your credit card continuously for a certain period of time, it incur additional charges. To avoid this, use your credit card for small purchases every couple of months. Do ensure that your pay off the balance before any interest it due.
- Know the Card usage and safety:
You can use your Credit Card at any store be it offline or online. In certain emergencies, you can also use it to withdraw cash from the ATM’s. However, this will attract certain transaction fees.
Moreover, to ensure that your usage and card details are well protected, most of the cards come with security features. The CHIP + PIN features are the standard security feature for all credit cards. The embedded chip encrypts all your data on your card, which prevents your credit card data from either being duplicated or tampered with. The PIN, which is known only to the user, helps in authenticating any transaction made on the card.
Together, no matter where or when you are using your Credit Card, your data and transactions are all kept safe.
As you can see, owning a Credit Card offers you plenty of benefits in the long run. You can easily own your very own first Credit Card in no time too. Clickhereto begin your application for your HDFC Bank Credit Card today!
To know how a Credit Card works, click here.
* Terms & conditions apply. Credit Card approvals are at sole discretion of HDFC Bank Ltd
FAQs
The First Number
| First Digit of a Credit Card Number | Industry |
|---|
| 5 | Banking and financial (Mastercard) |
| 6 | Merchandising and banking (Discover) |
| 7 | Petroleum |
| 8 | Health care and communications |
5 more rowsOct 11, 2023
Here's how to activate a new HDFC credit card by visiting an ATM: Step 1: Call the toll number 1860 266 0333. Step 2: Follow the instructions to receive an OTP on your registered phone number. Step 3: Visit your nearest ATM and enter the credit card.
What is the rule of credit cards? ›
Pay off your entire Credit Card balance before the end of your billing cycle: You need to pay off your card balance within the given credit card cycle, or else you will earn late charges. First time credit card holders normally get an interest free grace period to pay off their balance.
What is the limit on a credit card for first time? ›
A good credit limit for a first credit card is around $500 to $1,000. If you have limited credit history, banks will typically set your limit somewhere below $500, though you can get a higher limit if you have a lot of income or you put down a large refundable deposit on a secured credit card.
Can I have 7 credit cards? ›
So, while there is no absolute number that is considered too many, it's best to only apply for and carry the cards that you need and can justify using based on your credit score, ability to pay balances, and rewards aspirations.
What credit card number starts with a 7? ›
The first digit of the credit card number tells you if the card is from American Express (3), Visa (4), Mastercard (2 or 5), or Discover (6). Cards that begin with a 7 are gas cards, while 8 is for healthcare and telecommunications and 9 is often used by the government.
What is the minimum credit score for HDFC credit card? ›
The bank executive will run a background search on your CIBIL score and convey the parameters for approval. It is therefore ideal to maintain a minimum CIBIL score of 750 in order to get better offers on Credit Cards and a quicker approval.
How much money required for HDFC credit card? ›
Income Eligibility for Top HDFC Credit Cards
| Credit Card | Minimum Income for Salaried |
|---|
| HDFC Moneyback Credit Card | Rs. 25,000 p.m. |
| HDFC Millennia Credit Card | Rs. 35,000 p.m. |
| HDFC Times Titanium Credit Card | Rs. 25,000 p.m. |
| HDFC Times Platinum Credit Card | Rs. 35,000 p.m. |
4 more rowsMay 30, 2024
Summary: Best HDFC Bank Credit Cards 2024
| Policy Name | Forbes Advisor India Rating | Welcome Benefits |
|---|
| INFINIA Credit Card Metal Edition | 4.0 | Complimentary Club Marriott membership |
| Platinum Times Credit Card | 3.0 | Gift vouchers |
| InterMiles HDFC Bank Platinum Credit Card | 3.0 | 3,000 Bonus InterMiles. |
| Business MoneyBack | 3.5 | Nil |
1 more rowDoes credit card debt go away after 7 years? Most negative items on your credit report, including unpaid debts, charge-offs, or late payments, will fall off your credit report seven years after the date of the first missed payment. However, it's important to remember that you'll still owe the creditor.
5. How long does it take for my HDFC credit card to be processed and issued? Upon successful application completion, it takes about 21 business days for the credit card to be issued, printed and dispatched to you. However, in most cases, you will receive the card before 21 days.
What if I don't pay my HDFC credit card bill? ›
If you forget to pay your Credit Card bills on time, you may be charged a late payment fee. Also, you will have to pay interest on the outstanding amount. Eventually, you'll have to pay a much larger amount, and on top of all this your credit score may take a hit.
Is $1500 a good credit limit? ›
A $1,500 credit limit is good if you have fair, limited or bad credit, as cards in those categories have low minimum limits. The average credit card limit overall is around $13,000, but you typically need above-average credit, a high income and little to no existing debt to get a limit that high.
What is a good amount for your first credit card? ›
If you have good credit — a FICO score of 670 or higher — you'll likely be approved for a higher credit limit than you would with fair credit. That said, limits on these cards can still range from $500 to $1,000 for first-time cardholders, though you should be able to qualify for larger limits over time.
How much should I spend if my credit limit is $1000? ›
A good guideline is the 30% rule: Use no more than 30% of your credit limit to keep your debt-to-credit ratio strong. Staying under 10% is even better. In a real-life budget, the 30% rule works like this: If you have a card with a $1,000 credit limit, it's best not to have more than a $300 balance at any time.
What is the 7 digit number on a credit card? ›
Card Verification Value (CVV)
On some cards, there may be seven digits in this spot. If this is the case, the first four digits you see are the last four digits of your credit card number. The last three digits in the grouping represent the CVV.
What does the first number of a credit card mean? ›
The first digit indicates the provider: Mastercard numbers start with a 2 or 5. Visa card numbers start with a 4. American Express numbers start with a 3.
Is 7 cards too many? ›
There is no right number of credit cards to own, and owning multiple cards gives you access to different rewards programs that various cards offer. Owning five cards, for example, would give you a bigger total line of credit and lower your credit utilization ratio.
Do credit cards start with 6? ›
Visa cards begin with the number 4. Mastercards start with the number 5. Discover Cards begin with the number 6.
