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

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

In general, two types of credit cards are available in Bangladesh: MasterCard and Visa. There are also sub-categories under these brands, such as Silver, Gold, Platinum, and Signature cards offered by different banks. 

It is a card issued under the credit limit of the principal card. The principal cardholder is the main applicant who has been granted the facility. The principal applicant may allow a portion of the credit limit to be used by his or her spouse or family members. In that case, the spouse or family member is the supplementary cardholder, and the card issued to them is called a supplementary credit card.

You can log in to the FinCoach platform, select your preferred branch, and click “Apply.” Our site will redirect you to the respective bank’s application form. Fill out the form, attach the required documents, and submit it. The respective bank will contact you through your FinCoach account, 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 check whether you are eligible for a credit card by reviewing the eligibility criteria mentioned on the FinCoach website. You may also contact the customer service department of the credit card provider to confirm your eligibility. All information is provided by the respective bank or financial institution.

It varies from bank to bank; however, the typical range is between BDT 50,000 and BDT 1,000,000.

A credit limit is the maximum amount of credit extended to you on your credit card. This limit is determined based on your profile, repayment capacity, CIB report, and other relevant factors. 

Your credit limit is determined by your credit profile. As your income level and other aspects of your credit profile improve, your eligibility for a higher credit limit increases. In addition, your spending behavior and repayment history also support your chances of obtaining a higher credit limit.

In general, the common charges include:

Annual Fee: Banks impose an annual fee on each active card. It is charged once a year for maintaining the card.

Cash Withdrawal Fee: This is a charge applied when you withdraw cash within your credit limit.

Late Payment Fee: Each month, the bank generates a statement for your card. If there is any outstanding balance, the statement specifies a payment deadline. If you fail to pay by the due date, the bank imposes a late payment fee.

Over-limit Charge: This fee is applied when your outstanding balance exceeds your total credit limit. This may occur when you fully utilize your limit and additional interest causes the total outstanding to exceed the limit.

It is the amount you need to pay by the due date to avoid a late payment fee. Normally, this amount is 5% of the total outstanding balance. 

Yes, credit card providers charge cardholder’s penalties if they are unable to pay the due amount on time. Cardholders are usually charged interest at 2.50% per month on their outstanding balance. The interest is calculated based on the formula:

(Number of days from the transaction date × outstanding amount × monthly interest rate × 12) ÷ 365. 

Reward points are points earned through purchases made using a credit card. For every taka spent using the card, the bank provides a certain number of reward points, which are accumulated in the card account. The rate of earning reward points varies from bank to bank and from card to card. On a particular purchase, one card may allow you to earn 1 reward point, while another may offer 5. Similarly, the value of 1 reward point also varies depending on the card.

To redeem accumulated reward points, you can contact customer care directly or use the bank’s online application or platform.

It is the time period within which, if you pay the full outstanding amount, you do not need to pay any interest for using the credit facility.

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

Yes, you may convert your credit card transactions into EMIs.

A credit card balance transfer is the transfer of an outstanding balance from one credit card to another. This is a facility offered by many lenders (banks) to encourage customers to switch to a different credit card. Balance transfers are primarily done to take advantage of lower interest rates and to manage or reduce existing credit card debt.