The content is accurate at the time of publication and is subject to change.

A credit card is an integral part of every person's wallet today. The flexibility it offers in terms of money can hardly be denied. However, a lot of people applying for credit cards or even having one in their wallet are not completely aware of all the features that come with this piece of plastic. There is more to the credit card than just a series of numbers on it. Let us take a quick look at some of the features of the credit cards that every person should be aware of.

Limit on the card

The first important information is that every card has a particular limit associated with it. This is the amount up to which you can spend using the card. You can use the card for the various purchases you make or even withdraw cash from it, all within the available credit limit. Going beyond the existing limit can attract heavy fines and penalties which will just add on to your credit card dues.

Annual Percentage Rate

This is another important term associated with the credit card. This refers to the interest rate charged on the outstanding dues on your card. Many credit card lenders run promotional offers to attract new customers by offering 0% APR on the card for a limited period of time. Before you apply for the credit card, it is important to find out the actual APR once the promotional period expires. Most of the people refrain from doing this and hence are shocked when the banks revert to the regular APR on their credit cards.

Grace Period

Every bank gives you enough time to pay back your balance in full without incurring any interest on it. This time period is referred to as the grace period. If you do not pay back the dues in full and carry over the dues to the next billing cycle, you will no more be given any grace period. It is also important to remember that cash advances and balance transfers do not have grace period associated with them. Ensure you read the fine print on the credit card application form to find out the grace period. You can also find the grace period mentioned in the billing statement sent across to you for payment.

Fees and penalties

There are various fees and penalties associated with the credit cards. These factors vary from one bank to the other. While most of the fees are levied by all banks, there are banks that do charge unreasonable fees. Find out all about them before you fill in the application form.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.