Question 1

What is a credit limit?

Accepted Answer

A credit limit is the maximum amount you can spend using your credit card. This limit is determined by the bank based on your credit score, income, and repayment capacity.

Question 2

How is interest charged on a credit card?

Accepted Answer

Interest is charged only when you do not pay your total outstanding bill by the due date or when you use your card for cash withdrawals. The rate varies by bank and card type, usually ranging from 24% to 48% annually.

Question 3

What is the minimum due amount?

Accepted Answer

This is the minimum amount you must pay by the due date to avoid a late payment fee. However, paying only the minimum amount will result in high interest on the remaining balance.

Question 4

What is a billing cycle on a credit card?

Accepted Answer

A billing cycle is the period between two statement generation dates, usually lasting 30–31 days. All purchases, payments, and fees during this period are reflected in your statement.

Question 5

Can I pay more than the minimum due?

Accepted Answer

Yes, and it’s highly recommended. Paying only the minimum will incur high interest on the remaining balance.

Question 6

Who is eligible for a credit card?

Accepted Answer

Typically, individuals aged 21–65 with a stable income and good credit history are eligible.

Question 7

What are the common fees on a credit card?

Accepted Answer

Annual fee, late payment fee, over-limit fee, foreign transaction fee, and cash withdrawal fee.

Question 8

Is there a fee for late payment?

Accepted Answer

Yes, missing the due date incurs a late payment charge and interest on the unpaid amount.

Question 9

What should I do if I lose my credit card?

Accepted Answer

Immediately report it to the bank to block the card and prevent fraudulent transactions.

Question 10

Can I increase my credit limit?

Accepted Answer

Yes. You can request a credit limit increase through your bank's mobile app, online portal, or by contacting customer care. Approval is subject to factors like your repayment history, income, and usage pattern. In some cases, you may be required to submit your latest payslip or income proof for a higher limit.

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