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A credit card is a plastic currency issued by a bank that allows you to borrow money from the bank to make purchases. The borrower has to repay the borrowed amount before the next billing cycle to avoid the penalty. In case you do not pay the entire amount and decide pay in instalments, you will also have to pay the interest associated with it.
Banks offer amazing features on their credit cards. These features vary depending on the card provider and the type of credit card that people purchase. Some of them are as follows:
Most credit cards provide a grace period to the cardholders. Grace period is the time given to credit cardholders to pay off their credit card bills without incurring any interest on the outstanding amount. Grace period is also known as interest free credit period. The time period varies depending on the banks and the type of credit card. Generally, banks provide a minimum grace period of 20 days to their cardholders, starting from the day they receive their credit card bills. In India, most banks offer a maximum grace period of 50 days.
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