A credit card is an important financial tool in today’s world. With the majority of retail businesses going cashless, a credit card comes in handy when you want to purchase something. 

There are numerous cards available, each with its own set of features and benefits. It’s similar to shopping for your next SUV or a gaming laptop. It necessitates careful consideration of numerous brands, features, and costs. 

Once you start earning money, getting a credit card seems like the most mature thing to do. Though a credit card has many advantages, if not used carefully, it can quickly drown you in debt. When it comes to credit card payments, one must be extremely disciplined. Knowing all of the terms and conditions of your credit card will allow you to make the best use of it.

In this guide, we give you a checklist to help you find the best credit card that fits your lifestyle, income and budget. 

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What is a credit card? What are its important features?

A credit card is a form of credit that allows you to borrow money from a bank under certain conditions. You can use a credit card to pay for purchases at merchant establishments as well as online purchases. During an emergency, you can also withdraw cash from an ATM.

• A credit card has a set credit limit up to which you can spend each month. The limit is adjusted as you repay the money. If you do not repay the entire bill amount, you will be charged interest on the amount that remains unpaid.
• As a beginner, you may not be able to obtain a premium credit card with a high limit from your banker. You will most likely receive a basic credit card with the majority of features.
• You will be upgraded to better cards with superior features over time, based on your spending habits and repayment history. 

The thing is, every bank and credit card company has several card variants that can get confusing. Most banks offer an array of travel cards, entertainment cards, shopping rewards cards and more. 

How does one navigate through these numerous choices to pick the best card that suits them? We are here to help you with that. We have listed the top points, you can refer to while shopping around for your credit card.

1. Annual Percentage Rate (APR)

A credit card is essentially a monthly loan. You borrow money from a banker and pay it back the following month. If you do not repay, you will be charged interest. Credit cards have some of the highest interest rates available. This is due to the fact that they are an unsecured loan. 

The best credit cards on the market have annual percentage rates (APRs) ranging from 30% to 40%. This interest rate is determined by factors such as your income, age, credit score, and a few others. Pay close attention to this key point and decline a credit card with a very high APR.

2. Rewards Program

One of the best features of any credit card is the rewards program. Evaluate the card’s rewards program. A good indicator is the number of points you earn for every Rs.100 spent. The more points you earn, the more rewards you will receive. 

Check for cashback and discounts at brand partners so you can shop at their locations. It is also a good idea to apply for brand-linked credit cards, such as fuel cards, travel cards, student cards, or shopping cards, based on your shopping habits, so that you can get the most out of your money.

3. Revolving Credit Days

Credit cards provide ‘Revolving Credit,’ which means you have 45 – 60 days to repay the money you used on your credit card. Once you’ve made the payment, you’ll be able to use the credit again. Typically, you have a few days prior to the billing date and up until the bill due date to repay the entire amount without interest. There is also a minimum amount payable to avoid any additional interest charges on the borrowed money.

4. Annual Fee

As a marketing strategy to attract new customers, banks typically offer basic credit cards to beginners with no annual fee. However, if you are a few years old and want to upgrade your cards, you may have to pay an annual fee on your credit card. 

Annual fees range between Rs.500 and Rs.5000 per year, depending on the credit card’s features. Examine the credit card’s features carefully to determine whether the annual fee is worthwhile. Nowadays, card companies will waive the annual fee for subsequent years if you spend a certain amount during the year. Learn about it as well so that you can qualify for annual fee waivers.

5. Other Fees and Charges

Credit cards have a variety of other charges and fees such as late payment fees, cash withdrawal fees, over-limit fees, and so on. These fees will be detailed in the prospectus that comes with the card. Make a note of these charges so that you can avoid them by properly maintaining your card.

6. Credit Limit

Your credit limit is determined by your earnings. This is the maximum amount you can spend on your card at one time. As previously stated, this is a revolving credit limit. It is replenished on a regular basis as you make payments. Keep this limit in mind and make sure you don’t go over it. Otherwise, you will be charged for exceeding the limit, which is quite high. According to experts, your credit utilization ratio should be 30% or less of your total credit limit. This allows you to comfortably pay off your credit card bill.

Also Read: Is 0 A Good Credit Utilization Ratio

Conclusion

Your credit card should suit your lifestyle; it should reward you for things you regularly use your credit card for. The features and benefits of your card should be customized to your spending pattern so that you can extract maximum advantage out of the card. There are a lot of cards in the market so you should spend some time shopping around and see which suits you best. 

How does a credit card work?

How a credit card works are very simple. The bank will not begin to charge interest on the debt until the user stops using it or the credit card’s maturity is exceeded. Due to its very similar appearance and purpose, it is very often confused with a debit card, that is, the main payment card that is in our wallets.

Credit and debit cards are virtually identical in appearance

However, the difference in their number in our market is quite significant, the number of debit cards used is 4 times higher than the number of credit cards. The disproportion arises primarily due to a different mechanism of action, which also requires the use of a different method of withdrawing and rewarding the plastic. Credit cards are credit products, so the creditworthiness of a particular customer will be the deciding factor, among other things.

The credit card checker helps to check the validity and eligibility of a credit card before you make any transaction.

Undoubtedly, anyone who has used any kind of card payment can pay by credit card. With its help, you can easily pay in a stationary store by bank transfer with or without a PIN code within the permissible limit, as well as pay for purchases on the Internet. However, the obligations of the holder do not end there.

If in the case of “linking” plastic to a bank account, the amount is withdrawn from the account, then the credit card limit is used, which has nothing to do with our savings. So it will need to be repaid and the final cost of the loan also depends on how we do it.

The bank identification number is a unique combination of 9 digits in a specific order. There cannot be two identical BINs. Due to this, payments sent to a particular bank always reach their intended destination with the correct BIN.

A bincode performs numerous jobs, including Help to recognize the buyer by offering an extra sign. Affirm inline approval by requesting that the consumer enter their credit card number just like the kind of credit card they are utilizing. Guarantee consistency with send-out laws by recognizing the card-issuing country.

Credit card interest-free period

A special concept related to the operation of a credit card is the interest-free period – this is the period during which the bank that issued the card will not charge interest on the used debt limit. The interest-free period is usually 50-60 days. It consists of two parts:

Billing period: this is the time during which we can use the provided limit. It lasts a month, and its end is marked in the contract.

Debt maturity: at the end of the billing period, the bank sums up the funds used and gives us time to repay them. This will depend on the policy of the bank, but it is usually 20-30 days.

This means that when paying for purchases by card on the first day of the billing period, we have 30 days plus 20-30 days to return this amount, which was set by the bank in the offer.

interest-free period

During this time, the bank will not charge interest on the amount spent. This means that we can only pay off the card debt at the end of next month, and until then we can still use the free loan.

Credit card repayment

However, before the end of the interest-free period, the credit card must be redeemed to prevent the bank from charging interest. Thus, using the card will mean that the customer will only pay for using the card.

Paying by credit card is a very simple process. The card issuing bank provides the credit card number, or rather the account number, which is used to pay off the debt. The only thing the client needs to do is make a timely transfer of funds from the current and savings account to the credit card account.

However, be careful if you make payments on the last day of the interest-free period. The same rule applies here as in the case of a regular transfer – it cannot be delivered on the same day, and as a result, the bank will charge interest for each day of delay.

Repayment does not always mean the same thing

People with a credit card should know that the possibilities that plastic hides don’t end there. They do not have to pay the entire amount taken. Banks set a minimum amount, usually 5% of the amount owed on the card. The remaining amount can be divided into parts and paid off later.

However, it is worth remembering that in this case, you will have to consider the interest rate. In most proposals, it is equal to the maximum allowable rate, that is, four times the Lombard rate, currently 2.5%. Thus, credit cards are most profitable when we manage to pay off all the debt in the so-called “grace period”. Otherwise, it is no longer so profitable.

Credit card transfer and credit card cash withdrawal

The credit card is mainly used for payments at landline or online stores. You can also use it at an ATM or make a transfer. However, banks charge a substantial commission for such non-standard operations.

Although the basic use of the card is not expensive, any transactions involving converting the credit limit on the card account into cash require additional fees. The commission for withdrawing cash by credit card can be up to 10%.

cash withdrawal by credit card

Credit card withdrawal fees can be as high as 10%

The same goes for transfers from a credit card account – perhaps, but no less expensive. Credit card issuers often also offer to convert the available credit line into a cash loan. However, it should be remembered that interest is calculated from the moment of signing such an agreement, and not, as in the case of repayment of a credit card, only after the end of the interest-free period.

Credit card commission

However, the high fees for withdrawing cash from an ATM with a credit card or transferring from her account are not all. Most banks also stipulate that non-cash transactions alone do not bring interest.

Therefore, often the funds received in this way will cost much more, regardless of whether we managed to pay off the entire debt in an interest-free period or not. In order not to lose valuable savings, you should carefully read the terms of the contract.

Chase vs Wells Fargo High-Income Accounts

For wealthy people, finding a suitable beach is of paramount importance. When overseeing such enormous amounts of cash, even little contrasts in pay, charges, rewards, and advantages can have a major effect.

For this reason, most large banks have autonomous departments that only serve HNWI. These dedicated banking units offer many services not available to traditional clients, such as dedicated asset management, concierge banking, preferential mortgages, and credit card benefits and rewards.

Two of the most established and most popular banks in the United States of America, JPMorgan Chase and Co. (JPM) and Wells Fargo and Company (WFC), each offering private banking to account holders who keep up with balances over specific limits. Chase offers its private banking program, and Wells Fargo calls its program Private Banking.

The programs are strikingly similar. They exist as an element of home loan benefits, more significant returns on certain store records. And more mindful help, even unobtrusive contrasts between the two banks. Above all else, Wells Fargo forces at least $ 1 million in account total to turn into a private customer. While the base total on Chase is just $ 250,000, it just takes $ 100 to open. And required to have at least $10 million in investable assets, twice the current minimum of $5 million. Wells Fargo’s private clients receive personalized wealth planning, trust services, investment management, and private banking.

Note, The bank routing number will be needed if you’re going to make a wire transfer. Since each and every bank has a unique routing number. The check the wells fargo routing number will help you to find the routing number according to locations.

Key findings

• While both banks offer many benefits to HNWIs. It all comes down to the specific services that the client thinks would be most beneficial.
• A client active in real estate investing and often in need of creative mortgage financing can turn to Wells Fargo.
• Meanwhile, those actively trading in stocks and more interested in the brokerage side of the bank’s business might be better off with JPMorgan Chase.
• Chase Private Client Banking
• Chase offers its clients Private Client Banking at varying levels of discount on mortgages. Which based on the client’s total deposits and investments in Chase. These discounted rates apply to fixed-rate mortgages for the life of the loan. And adjustable-rate mortgages (ARM) before the first adjustment.

Private Client Banking customers also receive a $ 750 discount on closing the deal. Their loans close faster because they receive priority processing and access to a dedicated senior underwriter team. Chase’s retail interest rate discounts apply to Home Equity Credit Lines (HELOCs) as well as traditional mortgages.

At Chase, private clients receive asset management services from JPMorgan. These services include financial advisory services, mutual funds, securities-based lending, annuities, and college planning. Which includes 529 plans with tax credits. Private clients receive a private client consultant and access to the firm’s global strategy and global solution teams.

Chase offers access to their Chase Sapphire Reserve card, which offers a $ 300 a year travel credit. And they also offer their Chase Sapphire Preferred card. Which allows you to earn double points on travel and meals around the world.

Chase Private Client Services offers a dedicated private client advisor to help plan and implement investments.

Short review

When overseeing such huge amounts of cash, even little contrasts in pay, charges, rewards, and advantages can have a major effect.

Private banking additionally bears the cost of your expanded security. Furthermore, with the exceptional admittance to great rates, limits, and higher loan fees on your reserve funds, currency market, and CD records. The accommodations, and advantages offered by private financial look pretty alluring to a high total assets person.

Wells Fargo private bank

Wells Fargo’s private mortgage rewards are geographically distributed. As with Chase, clients receive special interest rates based on the amount of the deposit account. Individual clients with an existing mortgage who are paying a large lump sum of the principal have the option to change their balance sheet balance.

This process adjusts the depreciation table for the remaining term. And allows most of each subsequent payment to be converted to principal instead of interest. The cash-only bank purchase option allows customers to take advantage of cash-only real estate transactions and still pay for the purchase. The buyer pays for the property in cash. And then can apply for a mortgage from Wells Fargo within 90 days. With good credit, private clients can purchase a property with a large loan and invest as little as 10.01%.

Wells Fargo private customers get customized abundance arranging, venture the board, trust administrations, and private banking. In addition, clients with unique assets such as small businesses, oil, gas, and minerals, and investment properties have access to hands-on management from experts in these niches.

Wells Fargo offers them a Private Bank By Invitation Visa Signature, which gives them three points per dollar spent on travel, two points for dining, and one point for all other purchases. Like most other HNW cards, there is no annual fee and the benefits extend as you spend more.

Unlike the personal investment advisory services offered by Chase, Wells Fargo only offers a contact form that you need to fill out and a bank representative will call you to discuss. Its website has a lot of information on what you can invest in, but it is nothing. does not soothe anxiety or add comfort and guidance that an aspiring investor might look for in his bank.