Credit card

Why is a credit card better than a debit card?

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Credit cards and Debit cards are the most powerful and useful financial elements of our life, which assist you in carrying your money securely. In addition to securing your money, these cards also help in using them anywhere. If you are out of cash, it provides you the convenience of making payments at any restaurant or in a multiplex. You can also withdraw cash using any ATM machine.

Nowadays, everyone desires to get some attractive offers and discounts on both online and offline purchases. But, with credit card you get attractive offers and discounts without even spending your money. When making payments with the plastic cards, either you have the money in your bank account to pay for your payments or you have insufficient money to make the purchase. With debit card, it is necessary to at least have the amount of money required to complete the transaction. But with credit card, you can make the transaction and your bank will make the payment on your behalf. The basic difference between a debit card and a credit card is where the cards pull money from. A debit card is linked to the individual’s bank account. On the other hand, a credit card is linked to the issuer or the bank that charges it to your line of credit.

Debit and credit cards come with several attractive offers and discounts on online and offline purchases. Most of you would be having at least one credit card and debit card in your pocket. But no matter how useful they are, or how much convenience and protection they provide, they have some important differences, which make credit card more beneficial than debit card.

Difference between Debit and Credit Cards

Debit cards come with the convenience of cashless transaction and relieve us from the stress of carrying cash. It also provides us the convenience of accessing your money through ATMs to withdraw cash if in need. Debit Card is linked to your bank account and is ideal for rapid and hassle free transactions. When you make any transaction using your debit card (online or offline), the same amount gets debited from your bank account instantly. Your bank will send SMS and email alerts to inform you about the transaction being made by you. It helps to keep a track of your spending.

Credit cards function differently than Debit cards. The Debit Card is linked to the cardholder’s bank account, whereas on the other hand credit card is linked to the bank that provided the card and offers you a line of credit. So, when you make any transaction using your credit card, you are not charged for the payment and your bank makes the payment on your behalf. But, the same amount will be charged to your credit card bill, which will be generated the next month and then you have to make the payment for the same.

5 Reasons Why People should use Credit Cards instead of Debit Cards

  1. Reward Points: With credit cards, you can get reward points that you can use to receive free gifts, vouchers, cash back rewards and much more. But, there are rarely any banks, which provide reward programs with any debit cards
  2. EMI: When making purchases using the debit card, you have to pay the entire bill amount at one go. Whereas, with a credit card, you get the convenience of paying your bill amount by converting your purchases into EMIs of up to 24 months. You do have to pay interest every month on the outstanding amount with some additional charges.
  3. Credit Score: Credit reports are based on the previous credit history that is tracked by credit bureaus. Credit card helps build your credit history, which makes it easy for you to get a loan approval in future. However, your debit cards are not tracked by credit bureaus. Thus, your debit card usage does not affect your credit score at all. Thus, using a credit card and making repayments on time can assist you to build a credit score.

The above-mentioned reasons will help you in making your mind why you should use credit cards instead of debit cards.


Benefits & Offers – ICICI Bank Coral Credit Card

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In a cash dominating country like India, credit cards are always criticised. Credit cards are one of those things that people think they know, but they don’t actually understand. However, if used right, credit cards can offer some great benefits. ICICI Bank is one those leading banks which offer credit cards with huge rewards, unmatched benefits and unrivalled features. It has designed a range of credit cards suitable for every lifestyle based on their vast experience over the years. The gemstone and contactless collection of credit cards is specially tailored for people who use their credit cards for day to day expenses. ICICI Coral credit cards are issued under Gemstone and Contactless payment collection and it aspires to provide unique features and benefits like a gemstone. It offers exclusive lifestyle and shopping benefits which offers you more savings and rewards you on every transaction you make. Here’s an overview of the top benefits and features offered by Coral Credit Cards:


ICICI Bank Coral Credit Card

This card lets you enjoy unlimited cash rewards every day and everywhere.

Exclusive benefits:

  • Avail complimentary Provogue Tie as a welcome gift when you sign up for ICICI Bank Coral Credit Card
  • Enjoy 2x cash rewards on dining and grocery shopping at supermarkets.
  • Avail 2 complimentary movie tickets every month under the buy one get one movie ticket offer on BookMyShow.
  • Save more on your dining bills at over 2100 restaurants across the globe. Enjoy minimum 15% on your dining bills under the Culinary Treats Program.
  • Avail 1 complimentary airport lounge access every quarter
  • Earn 4 PAYBACK points on every Rs.100 spent on dining and grocery shopping
  • Earn 2 PAYBACK points on every Rs.100 spent on all other categories, except fuel.
  • Accumulated PAYBACK points can be redeemed for cash or gifts of your choice. 1 accumulated point = Rs.0.25

ICICI Bank Coral Contactless Credit Card

Making transactions was never that easy, simply tap your ICICI Bank Coral Contactless Credit Card to make a contactless payment. Get unlimited rewards and cashback vouchers on your shopping.

Exclusive benefits:

  • Built-in MasterCard contactless technology to make safe and secure payments at all retail stores.
  • Avail 2x reward points on dining and grocery shopping
  • Get a Provogue tie as a welcome gift on joining ICICI Bank Coral Contactless Credit Card
  • Become a member of Culinary Treat Program and enjoy minimum 15% savings on leading dining outlets and restaurants across 12 major cities of India.
  • Get a complimentary airport lounge access every quarter across all MasterCard domestic lounges across the country.
  • Save on your fuel spends, get 1% fuel surcharge waiver on all HPCL petrol pumps in India. The offer is applicable on a maximum transaction of worth Rs.4000
  • Earn 4 PAYBACK points on every Rs.100 spent on dining and grocery shopping
  • Earn 2 PAYBACK points on every Rs.100 spent on all other categories, except fuel.
  • Accumulated PAYBACK points can be redeemed for cash or gifts of your choice. 1 accumulated point = Rs.0.25

ICICI Bank HPCL Coral Visa Contactless Credit Card

This card helps you save on your daily commuting. Enjoy 2.5% cashback on fuel spends.

Exclusive benefits:

  • Get 2.5% cashback and 1% fuel surcharge waiver on your fuel spends across all HPCL petrol pumps in India.
  • Avail Rs.100 discount on up to 2 movie tickets booked from BookMyShow every month.
  • Become a member of Culinary Treat Program and avail 15% savings on dining at over 2100 restaurants across the country.
  • Earn 2 PAYBACK points on every Rs.100 spent on all retail purchases except fuel spends. Accumulated reward points can be redeemed for fuel expenses worth Rs.500.
  • Spend Rs.50000 annually and get your annual fee wiz. Rs. 199 waived off.

What are the Benefits of having an American Express Credit Card

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If you love getting rewards then you are going to love American Express. It offers some the best range of credit cards which comes with plenty of rewards, tons of miles and comparatively lower interest rates. Amex has a reputation for its responsive customer service and perks across the country. It offers credit cards for every lifestyle and each of its cards comes with a suite of benefits which are tailor made to serve its different clientele. Amex has categorised its range of credit cards for different categories. For example, if you need to carry a balance or just need shopping benefits then Amex has a specific credit card for it. If you want a luxurious holiday, there’s a card for that too.


Here’s an overview of the kind of perks and benefits you get with an American Express Credit Card:

  1. Lounge access

Regardless of whether it’s a business trip, leisure trip, flight delay, cancellation or missed connection, lounge access helps you in making your airport experience more delightful. Airport Lounges offers complimentary amenities such as fast Wi-Fi,  modern shower facilities, delicious food and snacks, mock tails, cocktails, fully stocked bar and much more. American Express offers you complimentary access to American Express Proprietary Lounges and other Domestic Lounges across the country. You can also get complimentary Priority Pass membership to get access to over 700 VIP lounges in over 120 countries regardless of the class or airline you fly in.

  1. Travel

An American Express credit card offers its holder special travel benefits where they can make the most out of the trips in comparatively lower price. Card holders are entitled to special discounts, deals and VIP reservations. The world is your oyster with American Express Platinum Reserve credit card by your side. You have the privilege to travel across the globe with super savings across hotels, flights and more when you book through MakeMyTrip.

  1. Lodging Elite Tier Membership

American Express offers you stay in leading hotel chains with an oasis of comfort and luxury.  Get a membership which complements your astute taste and relish premium environs. In this membership you get complimentary night stay in addition to your booked stay, complimentary dinner or breakfast, special discounts and much more. As a valued member of Amex, you will receive exclusive discounts and attractive offers via email.

  1. Health and wellness

Your American Express credit card is your partner in all ebbs and flows. Amex credit card holder can avail benefit special healthcare packages and a range of wellness privileges with select hospital partners. You can avail special discounts on routine check-ups, preventive health packages, doctor consultations, Radiological diagnostics services, Non-invasive cardiology, etc. Get medical concierge service where you are entitled to concierge health management services and priority access to top most global medical centres of excellence.

  1. Concierge services

Be it sourcing you service that you need or arranging an event tickets or making quick reservations for your stay, American Express credit card is a helping hand whenever you require. Concierge services are like a room service at your hotel, whatever you want is just a phone call away. Card holders can avail dedicated Platinum Concierge or 24×7 Card related assistance whenever wherever they want. Enjoy a bouquet of services including arranging a golf round, booking movie or event tickets, delivering flowers and gifts, making dinner reservations and much more.

  1. Purchase Protection

Purchase Protection is an embedded benefit offered to you by your Amex credit card without any enrolment or additional charges. It helps in protecting the eligible purchases made through your Amex credit card when they’re accidentally damaged, lost or stolen for up to 90 days from the date of purchase. Amex refunds you the money for your damaged item.

The 5 Best Credit Cards for you

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The market is flooded with credit card options today and it definitely gets difficult to choose one. Unsecured credit cards offer better benefits and rewards, while the secured ones are easy to get even with a low credit score. So to help you choose the best suitable option for you, listed below are 5 of the best credit card options from which you can choose one according to your requirements.

  • ICICI Bank credit card Platinum card- This is a good option for those having minimal requirements. To avail this ICICI Bank credit card, you do not need any additional proof, identity or income proof. Interest rate  charged per month is 2.50% and the interest rate per year is 34.49%. The cash withdrawal fee charged is 2.5% on the amount which is withdrawn. The benefits include free credit time limit of up to 50 days, cash withdrawal facility and flexible credit limit.
  • ICICI Bank credit card Coral credit card- You can fetch this ICICI Bank Credit Card only if you have a fixed deposit account with the ICICI Bank. 85 percent of the total fixed Deposit balance is the credit limit you will be offered. It should be kept in mind that if you fail to pay off dues on this ICICI Bank Credit Card, within 60 days, then the bank will withheld the outstanding amount from your fixed deposit account. This ICICI Bank credit card has Rs.500 joining fees and offers 15% savings on eating out at select 800 restaurants, free airport lounge access, double reward points on groceries, supermarkets, etc.
  • SBI Signature credit card- Just like the ICICI Bank credit card, this SBI credit card is also issued against a fixed deposit and is a secured card and is known as SBI Signature credit card. It offers generous  rewards and bonus points: one reward point is equal to 0.25INR, regular IP (2 reward points for every Rs.100 spent), accelerated earn rate (10 reward points for Rs.100 spent), 10,000 bonus reward points on annual spends of Rs.2 lakh or Rs. 3 lakh or Rs.4 lakh and 20,000 bonus reward points if spends exceed Rs. 5 lakhs.
  • SBI Advantage Platinum credit card- You can use this card all over the world just like other ICICI Bank credit card offers. This card offers access to over 200 golf courses, and helps you to earn rewards on dining, national and international purchases. Also, the card offers complimentary access to Elite Priority Pass Program and membership to enter airport lounges of the country or outside anywhere in the world. With this card, you can earn up to 40,000 cash points per year.

This card has many useful features and comes with extended credit limit option, which means that the unpaid balance on the card is carried forwarded at 2.55% monthly. The card offers cash withdrawal limit of 100%, free credit period of up to 50 days and enables booking of railway ticket online, etc. You can replace this card anywhere and also share its benefits with any other supplementary cards.

  • Indusind credit card- This is also like the ICICI Bank credit card, which is a secured card on fixed deposit. Particularly, the Indusind Aura credit Card has less joining fees than other credit cards offered by Indusind. Anyone can apply by paying a simple joining fee of Rs.899. Addtional service tax is applicable on the joining fee. This joining fee will be waived off after spending Rs.25,000 in the first 3 months of applying for this card.

Thus, apply for any of the credit cards above and enjoy the benefits and rewards offered. In case of secured credit cards, make sure yo have a fixed deposit account before applying for one.

Follow these 5 credit card rules when traveling abroad

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It is advisable to use credit cards for making payments while travelling abroad. This is because they offer convenience, protection and security which is not guaranteed while using traveler’s cheques or foreign currency. At the same time, many HDFC credit card offers give you generous travel rewards or cash back rewards every time you use your credit card. It is a wise option to use credit cards while traveling abroad, but there are some things you need to keep in mind.


Fraud protection

Banks and credit card companies try to minimize their losses due to fraud, because they suspend an account when a credit card is used in an unusual location. If you are using your credit card in an exotic vacation, your bank may interpret that your card information has been stolen by an overseas hacker. It can be very frustrating to find out that a hold has been placed on your card when you are trying to make a payment at a gas station or a hotel.

In order to avoid such a situation it is advisable to notify your bank or credit card company that you will be traveling abroad. They should be informed about your travel dates and the country or countries that are on your itinerary. It is also advisable to notify them of any stopovers on the way even if it is just to change planes. This is because you may end up shopping at the airport duty free shops or even miss a plane and have to put up in a hotel at this stopover location.


The cards like American Express and Visa are widely accepted around the world. However, Master credit cards are not accepted by all foreign merchants. At the same time, some businesses abroad accept only debit cards, official currency of the country or local cheques. If you wish to make payment using your credit cards then you should shop where all major credit cards are accepted.

Customer service and travel assistance

Most credit card companies offer free travel assistance program. Such program features may include some or all of the features like travel accident insurance, purchase protection along with car rental loss or damage protection. Along with these some major credit cards also offer additional protection like express shipping for replacement of credit cards, legal assistance and referrals to medical facilities. Services of different banks and credit card companies are different so you should conduct a research regarding the services provided by your card company before you embark on your journey.

Foreign transaction fee

Many people are unaware that most credit cards charge a fee of 1-3% of the purchase price on every purchase that you make using the card internationally. Here you need to bear in mind that these fees are not for currency conversion, even  if you make the transaction in your own currency this fee will be charged. You also need to bear in mind that sometimes foreign transaction fees are charged even on purchases made inside the country if the company is a foreign one.

Cash advance fees and cash advance APR

If you are depending on your credit card to withdraw cash from an ATM, you should keep in mind that there will be a cash advance fee amounting to around 2-5%. At the same time, you will also have to pay a charge of usage fee for using an ATM of a bank where you don’t have an account. This can add up to a large amount particularly if you are frequently using your credit card at ATMs. It is always advisable to use your debit card at ATMs to avoid cash advance fees.

Apart from the cash advance fees, there is a higher rate of interest for cash advances than they  charge for purchases. Although it is true that if you pay your credit card bill in full every month there will be no interest charged on it, but that is not the case with cash advances because they accruing interest from the time since the cash is withdrawn. Withdrawing cash using your credit card should always be your last resort.

7 free and low cost ways to protect your credit

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CIBIL score is the most commonly used credit score in India, because CIBIL or Credit Information Bureau Limited is the organization which keeps  a track record  of the financial habits of individuals in the country. CIBIL score is one of the most important factors which banks and financial institutions consider while analyzing your loan application. A CIBIL score is generated based on the credit history which includes the credit you have taken in the past and the manner in which you have repaid it. A score more than 750 qualifies to be called high score and it means that you are very credit worthy. On the other hand a poor score is less than 350 and proves that you are a risky customer for any bank or financial institution. If your CIBIL score is less than 350 then banks and lending organizations will hesitate in approving your loan or credit card.


Awareness about a good credit score is increasing in the country because most people need to take loans for various purposes. Often people get surprised when their loans are rejected and wonder how to protect and improve their credit score. However, if your credit score is damaged then it may take some time and effort to improve it, and hence prevention is better than cure in this case. Let us look at some ways in which you can protect and improve your credit score.

Pay bills regularly

Regularity of bill payments comprises 35% of a person’s total credit score. Many people are still not aware that paying their bills like electricity bill and phone bills play a major role in improving your credit score. Hence it is important to pay your utility bills on time. If you want a really healthy credit score then you should make no late payments for seven years at least.

Square off debts

Another easy method to improve your credit score is to start paying off your old debts and loans. It is also advisable to make timely payments of the loan EMIs to get rid of your dues, even if the loan amount is a small one. It always helps to minimize your outstanding debts when it comes to improving your CIBIL score.

Less number of credit cards

If you have a credit card, it makes you eligible for loans and you can also take a loan against your credit card. However, owning too many credit cards and making large purchases on credit card can cost you high at times. It is hence advisable to avoid having credit cards more than necessary and avoiding the use of credit cards in the first place. You should also try to limit the total expense on your credit cards between 10-20% of the total credit limit.

No card defaults and new purchases

One important method of improving your credit score is to pay off all your credit card debts and avoiding defaults. It is ideal to maintain the balance of your credit card at least 30% below the credit limit. You should also pay off all dues when the outstanding balance is nearing the credit limit. Also,“credit card apply” is a bad idea because this can further damage your score

Get a secured credit card

If you have a low credit score then it is a good idea to get a secured credit card and build a brand new credit history with its help. If you make payments on time for the secured credit card, it will improve your credit score.

Timely EMI payment

Pending loans and debts have a major impact on your credit scores and the EMIs on these loans and debts should be paid on time. At the same time, if you keep your EMIs pending it will compound your interest.

Debit or Credit? Which one should you choose at the checkout?

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Whether you should choose debit cards or credit cards while making payments is a question that has been in existence ever since electronic methods of managing money came into being. Then again there was the recent recession, which saw many people burdened with unbearable credit card debts. Although many people think that if they don’t take credit cards they will not get into trouble of debt and this is why they don’t apply credit card online. However, there are many benefits of using credit cards and the answer to the question asked above is that you should maintain a balance between using credit card and debit card. Using credit card wisely is very important.

debit and credit cards

Pros and cons of using Debit Cards

Making payment with debit cards means that you are spending the money that you already have and usually there are very few or no rewards attached to making payments with debit cards. However, with debit cards you can be assured that you will not over spend beyond your budget and ability and hence you will be able to avoid the burden of debt. At the same time, you can keep a track of your earnings, spends and savings when you make payment with debit cards because, you get your bank statement at the end of every month. There is no spending limit on debit cards and you can spend as much money you have in your account which is good for making large payments.

On the other hand there are some disadvantages of making payments with debit cards. This is because your debit card is directly linked to your bank account. As a result, if someone hacks your debit card, they will have access to all the money in your bank account and they can withdraw all the money. There is little or no protection provided by banks against debit card theft and misuse. Identity theft is also easier with debit cards and there are instances when the entire savings of people have been wiped out from their bank accounts because of debit card theft.

Pros and cons of using credit cards

Using credit cards is essentially taking a loan for the amount paid by the bank or credit card company. Usually card companies provide a grace period which is around 30 days before they start charging interest on the amount that they have offered you as loan. Hence if you pay off the entire credit card bill every month, then there is no risk of incurring interest on the amount that you spent on the credit card.

There are many benefits like cash back, travel rewards etc. that you get with credit cards. At the same time, you can also take bank loans against your credit cards at reasonable rate of interest. Also, you can buy items on installment with the help of your credit card and this too is usually at a reasonable rate of interest. Hence there are many benefits associated with making payments with credit cards, which is why you should apply for credit card online.

However, there is one great disadvantage associated with credit cards and that is the risk of overspending. Due to the fact that money is not immediately leaving your bank account or wallet, most people tend to overspend. At the same time, some people spend beyond their capacity to repay which results in a vicious cycle resulting in insurmountable credit card debts. This was the reason for many people going bankrupt in the US until recently. However, if you use credit cards responsibly then there is no such danger and you can reap the several benefits of credit cards.

As can be seen using debit and credit cards have their own advantages and disadvantages and the choice to use either depends on your individual situation and preference.