Credit Cards: What they are and availing them at Kotak Mahindra Bank
A credit card is a unique 16-digit thin rectangular piece of card, made of either plastic or metal, issued by a bank or financial services company. It allows the cardholder to borrow funds from the bank or financial institute to pay for products or services bought at merchant sites that accept credit card payments. The size of a credit card is 85.6 mm x 53.98 mm or 3.375 in × 2.125 in.
Kotak Mahindra bank offers a range of credit cards that are suited to the different needs of customers. The executives at Kotak Mahindra Bank are available during Kotak bank timings to guide you through the process of choosing the best cards that will suit your purpose and needs.
Benefits and risks of a credit card
Using a credit card is like taking a loan from the bank. You take money from the bank to fulfill your current payments without paying the money from your pocket. This borrowed amount is then billed to you the following month, which in turn is needed to be paid off from your pocket.
Because of this, many credit card holders are tempted to spend more than what they can afford, thus incurring debt that keeps growing if mismanaged. However, a credit card is advantageous in situations where you need immediate money for emergencies like flight bookings or paying medical bills.
It is the most common form of payment used in most shopping establishments, enabling you to travel anywhere without carrying a huge amount of cash around. Some credit cards provide interest-free cash withdrawals, with no interest charged for up to a month. Kotak and its rivals such as HDFC Bank, HSBC bank, etc provide credit cards with benefits for purchases in various diners, movie theatres, flight bookings, airport lounges, shopping brands, fuel, cash back, etc.
Further, Kotak bank timings are like HDFC bank timings or other bank timings, where the executives are available to assist when needed. In case any theft or loss of a credit card takes place, one can immediately contact the banks to get their cards blocked.
Tips to consider while choosing a credit card at Kotak
Different credit cards have different features, so it is important to consider the following to choose the right credit card for you:
- Purpose of the card – depending on the purpose for which you will be availing the cards, some cards are more useful to you than others. For example, there are lifestyle cards, entertainment cards, fuel cards, co-branded cards, etc. that cater to different spending habits. This will give you maximum benefits on your transactions.
- Fee structure – Credit cards come with charges, like the joining and the annual fee. Look for a card with the lowest charges to limit your expenses.
- The rewards offered – After shortlisting the types you credit cards you want; you can narrow the list further by checking the reward points that they offer on every purchase. Choose a card with the maximum benefit features such as cash back, discounts, gift vouchers, etc.
- City of residence – Some cards give benefits to shoppers or diners specific to certain cities.
- Eligibility – the most important eligibility factor for some credit cards is the monthly income of the cardholder. Other eligibility factor includes your age, occupation, and credit score.
Interest Rates & Charges for credit bank issued by Kotak
Kotak charges the following fees for their credit cards. Hence it is important to know them before applying for credit cards.
- No joining fee – some cards issued by Kotak do not have joining fees while others have.
- Annual fee – this is a fee chargeable every year for credit card maintenance.
- Credit card interest rates – this is the interest rate payable when you default in paying your credit card dues or making only partial payments on the outstanding bills.
- Late payment charges – the is the charge payable on late payment of credit card bills.
- EMI Charges – this is the fee payable for converting your large purchases to small convenient EMIs.
- Other charges – these are card-specific charges for availing services from Kotak Mahindra Bank.
Types of credit cards available at Kotak Mahindra Bank
Below are some of the Kotak Mahindra Bank credit card types:
- Basic credit card – The credit limit for this card is based on your income.
- Secured credit card – this is for those who have a poor credit history but still need a credit card. You can apply for and get this credit card against a deposit.
- Cashback credit card – This card allows you to earn cash back on each transaction that you make.
- Low-interest credit card – This card has a lower rate of interest than the other cards.
- Travel credit card – This card is best suited for those who travel frequently. It also comes with travel insurance.
Kotak Bank’s credit cards can be differentiated based on the rewards and benefits that they promise. Kotak understands that the needs of different people are different, hence it has come out with as many credit cards as possible that will cater to the needs of different people.
Eligibility and Documents Required for New Credit Card
Kotak offers instant approval cards online. This has enabled a lot of people to get credit cards. Below are the eligibility criteria for getting a credit card at Kotak:
|Age||At least 18 years and above|
|Income||Earnings should match the minimum income required for each credit card|
|Occupation||Self-employed or salaried individuals|
|Credit Score||Good credit score based on loan and previous credit card history. You also need to have enough assets and income.|
|Documents needed for online application||
Steps to apply for a Credit Card at Kotak
Applying for a credit card at Kotak is relatively simple. Kotak Mahindra bank does not only allow its customers to apply for a credit card during Kotak bank timings but also online. Below are the steps which you can follow to apply online:
- Click the “Apply Now” icon in the section of the credit card that you wish to avail.
- Submit details such as name, birthdate, age, income, PAN, address, proof of address, and other details for KYC. You’ll also need to submit proof of income and employment status.
- Finally, after the submission of all details, check your application status periodically.
If one has difficulty applying online, one can visit the nearest bank branch to get in touch with an official representative.
Kotak Mahindra bank also offers debit cards and Forex/Prepaid Cards to its customers. Drop a visit to your nearest branch at Kotak bank timings or visit their website to get details of them.