Credit Card: How much is charged on the credit card bill, how does the company charge interest, understand the complete calculation

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Credit Card Bill Calculation: Along with online payment in India, the trend of card payment has also increased very fast. By paying money through debit card, money is deducted directly from the account. Whereas, the credit card bill has come to the customer. It has to be filled at the right time. For this, a time limit is given by the card issuing company. However, the credit card issuing company imposes a penalty on you for not depositing the money within the stipulated time. We tell you how much is charged for not paying the bill. How is its calculation done?

what is a credit card

The credit card is given to the customer by the bank or any company on the basis of his CIBIL score. Credit card is a financial instrument that you can use for your shopping and financial transactions. It is a cash-in-trade type that allows you to make purchases at various merchant locations and use it to meet your expenses. A credit card allows you to make purchases up to a certain amount, which is called a “credit line”. It is based on your credit score and payment history. If you use your credit card for purchases and don’t pay the amount in full at the time of the bill, interest is charged. This interest is charged on the unpaid amount and is added to your outstanding balance. On credit cards you can manage your account and pay for purchases through online settlement. Along with this, you can also make payments in different types of websites, online stores, restaurants through this.

how many days to pay credit card bill

You are given a fixed supply time to clear the credit card bill. This usually happens from 20 to 50 days. Within this time you have to pay the bill amount in full so that you can avoid interest. If the bill is paid after the specified grace period, the company charges interest on the amount of the bill. The rate of interest on credit cards is charged in the form of Annual Percentage Rate (APR). This rate ranges from 14 percent to 40 percent. If you do not pay the bill on time, then the interest on the outstanding limit of your card increases. calculate its interest (Total days from transaction date x Balance x Monthly credit card interest rate x 12 months) / 365 days is based on.

how to apply for credit card

First of all, you have to apply for a credit card by visiting the website of any bank or financial institution. You can also apply by visiting the branch of the financial institution. You will need to submit all the necessary documents of your identity (PAN Card, Aadhaar Card, Passport Photo, Selfie etc.) along with the application. The financial institution will verify your documents and assess your credit worthiness. Here your payment history, income, borrowings, expenses, etc. will be analysed. Once your credit worthiness is confirmed, you will be provided with a credit line for the credit card up to a certain amount. After your application and analysis, the financial institution will approve the credit card as per their wishes. After credit card approval, you will be sent a credit card by the financial institution to your registered address. Along with this you will also be given a pin number for your control.

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