A credit card is a financial product through which banks provide sort of short-term loan to individual. In general, this loan refers to a credit limit up to which an individual can spend money for purchasing his/her necessities. At the same time individual can also withdraw money using this card at ATM.

A debit card allows you to withdraw money or spend the same directly from your bank account deposits while a credit card, on the other hand, is similar to a short-term loan from the card issuer that allows you to make payments or withdraw cash.

In general, two types of Credit Card available in Bangladesh: Master card and Visa Card. There are also sub-categories under these brands. Like some banks have Silver, Gold, Platinum, Signature etc. categories.

It’s a card that is issued under the master limit of the principal card. A principal card holder is the main applicant who has been given the facility. This principal applicant may allow some of his/her limit to be used by his/her spouse or family members. In that case that spouse/family member is the supplementary applicant and card being allowed to him/her called the supplementary credit card.

You log-in to FinCoachBD.com, select your respective branch and click apply. Our site will redirect you to the respective bank’s application form. Fill the form, attach the required documents and submit. The respective bank will contact with you vide your account with FinCoach and if everything is in order, the bank will issue the credit card and inform you immediately.

It varies from bank to bank but in general it takes one week to get a credit card.

You can know if you are eligible for a credit card by checking its eligibility criteria as mentioned on the bank’s website. You may also contact the customer service department of the credit card providers to ascertain your eligibility.

In general, it is 2.5% per month. That is annualized rate of interest is 30%

It varies from Bank to Bank. Normally the range is from BDT 50,000 to BDT 1,000,000

A credit limit is the maximum amount of credit extended to you on your credit card. This maximum credit amount is subject to your profile, the repayment capacity, CIB report, etc.

Your credit limit is subject to your credit profile. As your income level and other parameters of your credit profile increases, your eligibility for credit limit increases. In addition, your spending nature and repayment history also supports you to get a higher credit limit.

It is the amount that you need to pay within due date to avoid late payment fee. Normally this amount comes to 5% of the total outstanding.

Yes, credit card providers do charge cardholders with penalties if they are unable to pay the due amount on time. Cardholders are usually charged with an interest of 2.50% per month on their outstanding amount. The amount to be paid is calculated based on the formula: (Number of days counted from the date of transaction made X Entire outstanding amount X Interest rate per month X 12 months)/365.

Yes, you can use your credit card to withdraw cash from an ATM. However, you withdrawing cash using a credit card incurs additional charges.

It is the point that is earned by purchasing through card. For each taka expenditure vide card, the bank provides certain reward points that are accumulated in the card. The rate of earning reward points differs from bank to bank and from card to card. On a particular purchase, 1 card may let you earn 1 reward point while the other may let you earn 5. Also, the value corresponding to 1 reward point varies from card to card. To redeem these accumulated reward points, you can directly contact to their customer care or through their online application/platform.

It is the time frame within which if you pay the full outstanding, you need not to pay any interest for enjoying the credit.

If you do not pay your total credit card bill by the due date, you will be charged late payment fee plus interest from the date of purchase. In this case you will not be entitled enjoy the free credit period. Also, all new credit card purchases would incur interest until the bill is fully settled.

Yes, you can convert your credit card purchases into EMIs.

A credit card balance transfer is the transfer of one credit card’s outstanding amount to another. This is a tactic used by many lenders (banks) to entice clients to switch to another credit card. The balance transfer is done primarily to take advantage of low-interest rates and avoid any existing debts on credit cards.