The State Bank of India (SBI) is one of India’s most trusted banks. They provide a wide range of services in the banking and finance sector of India. The SBI Credit Cards have probably the widest recognition and acceptance across the country. They provide a wide variety of cards with different specifications, requirements, rates, and features for the benefit of their customer. SBI also charges some of the lowest rates of interest on theirCredit Cardsas compared to market competitors. You can use your SBI card all over the country for various things which includepaying for movie tickets, train and airport tickets, food, hotel booking and a whole lot more.
However, before we dive into the benefits and facilities of SBI Credit Cards, let us understand the concept of Credit Cards.
What is a Credit Card?
A Credit Card is a monetary card which is issued by a bank or a non-banking financial corporation. It enables the holder to borrow money from the bank to pay for goods and services. The borrower has to pay back the lender (bank in this case), the entire principal sum with an agreed upon rate of interest added to it. Typically, Credit Cards have a set borrowing limit. This limit is quite flexible and can change with use.
What are the different types of Credit Cards SBI issues?
You can get a Credit Card issued from a variety of card options. Currently, SBI issues 18 different types of Credit Card. You can apply for a card that best suits your need. SBI Credit Cards can enable you with a host of different services and benefits like reward points, concierge services, lounge access, travel benefits, Fraud Liability Cover and much more.
Out of the 18, the most popular are:
- Air India SBI Signature Card
- BPCL SBI Card
- SBI Card Elite
- SBI Card Prime
- SimplySAVE SBI Card
All these cards have different advantages and rates. It is important to source all the details andmake an informed decision before Applying for Credit Card.
How can you get an SBI Credit Card issued?
If your application for a CreditCard is successful, SBI will issuethe card in accordance with their internal policies regarding the different Credit Cards. There are different eligibility standards for these cards like minimum monthly income for salaried people, loan history, type of employment and other things. Apart from these, a strong credit score, not lower than 750, is a plus point.
What is a Credit Card statement and how to understand it?
A Credit Card statement is a detailed statement issued each month with all the important information related to your Credit Card, like total amount outstanding, minimum amount due, previous month’s transacted amount. A card statement is a very important instrument in itself for your finance management. Things included in the statement like New Balance, Credit Limit, Late Payment Warning, Interest Charged, Payment Due Date are all very important for you to manage your monthly budget and finances.
What information does a Credit Card statement contain and how to read them?
Almost most of the information is fairly straightforward, often; the fine print can get quite confusing. All the things included in a Credit Card statement are important to analyse for making an informed financial decision.
A Credit Card statement contains:
- Account Information and Statement Period: This section contains the period for which the statement has been generated and the account information such as cardholder’s name and address.
- Account Activity Summary: This is a summarised form of all your month’s purchases, credits, balance transfers, cash advances, fees incurred, interest charged, and past amounts. Most importantly, it shows your available credit, new balance and the minimum amount to be paid.
- Payment Information: This shows what is the total amount you have borrowed from the bank, the amount you have to pay and the minimum amount due.
- Notice Regarding Changes in Rates of Interest:The Credit Card statement remains the most important source for notifying cardholders about changes in the amount or rate of interest that is charged on them.
- Transactions: There is also a list of transactions that have been made on the credit card in the month.
- Rewards Information: This portion contains all the information regarding the reward points earned by you and any cash back that you may have received.
Apart from these, the card statement also carries important things like information about special offers, changes in terms of agreement regarding fees and rate of interest and other important information.
How is all the information in the Credit Card statement useful and why should you read them?
In this modern cyber-age where the internet is everywhere, your Credit Card is unsafe. No matter how many safety protocols is set-up, Credit Card theft has been a rising concern for many. Your card details if stolen can be used to transfer money, make unauthorised transactions or harass you through many different avenues. Your bank, despite all its automation, may over-charge you on your interest, or the amount due. In all these cases, your Credit Card statement is important for you. You can look over all your transactions and flag any unauthorised transactions made through your card. You can always refer to the calculation of the interest charged and verify it.
Apart from these, your card statement is useful for one very important thing -managing your savings and monthly budget. Since you can see all your account activity at one place, you can find out all the futile purchases you have made and cut back on those. You can find out the amount due to be paid by you and the minimum amount that can be paid and according to these, formulate your household budget for the next month.
All in all, a Credit Card statement helps you get a better understanding of yourself as a consumer and modify your purchasing and spending activities to save more.