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2 mins Read | 3 Years Ago

3 Things You Should Know Before Getting a New Credit Card | ICICI Bank

3 Things You Should Know Before Getting a New Credit Card


A Credit Card is a handy financial instrument that allows you to make purchases on credit, the costs of which you can repay at a later date. Depending on your credit score and your total monthly net income, the card comes with a predetermined credit limit, up to which purchases of both goods and services can be made through online or offline modes. If you’re planning to get yourself a new credit card in the near future, here are 3 things that you need to know.

1. It Can Help Build Your Credit History 

Most banks and financial institutions would generally be unwilling to grant loans and other forms of credit to individuals with little to no credit history. How do you build a credit history? Here’s where Credit Cards come into the equation. 

For instance, when you apply for and get a Credit Card, such as an ICICI Bank Credit Card, all your activities such as, your purchases and your repayments are reported by the bank to the credit information companies. This information is then collated by these companies and is used to arrive at a credit score. That score is then used by the bank and other financial institutions to determine whether or not you’re eligible for a loan.

And so, when you get a Credit Card and make all of your payments on time, your credit score goes up and you build a good credit history. Similarly, when you have an outstanding amount payable on your Credit Card, make delayed payments, or reach the maximum credit limit, your credit score takes a hit and you end up building a bad credit history. This can ultimately disqualify you from being able to successfully get a loan or more credit.

2. Interest On Credit Card Utilization Can Be Avoided

Thanks to the concept of ‘grace period’ that products like the ICICI Bank Credit Card come with, you do not have to pay any interest for utilising the credit limit on your card. However, here’s something that you should note. You get to avoid interest, only if you pay your credit card bills in entirety within the due date.

For instance, in the case of ICICI Bank Credit Cards, the interest-free grace period typically ranges from 18 days to around 48 days, depending on the date of the purchase. Let’s assume that your Credit Card statement is for the period starting from Jan 15 to Feb 15, 2020. In this case, the due date for the payment of your Credit Card bill for this period would be Mar 02, 2020. Let’s say that you make a purchase on Jan 16, 2020. Then, the interest-free grace period in this case would be 47 days. 

So, if you pay your Credit Card bill in entirety within Mar 02, 2020, you don’t have to pay any interest on your purchases for the entire statement period. However, if you fail to do so, interest charges start to accrue on your total outstanding amount beyond the due date. As long as you pay your bills in full and on time, you can enjoy all of the benefits of your Credit Card without any interest or other fees being charged.

3. EMIs And Personal Loans Can Be Availed On Your Credit

One of the major advantages of a Credit Card is that you can also avail a personal loan using your card’s credit limit. This facility is offered by almost all leading Credit Cards including the ICICI Bank’s Credit Card. If you are ever in need of emergency funds, going the traditional route of applying for a loan can set you back by a few days. 

However, you can circumvent all of the regulatory procedures by simply opting for a Personal Loan using your Credit Card. You can get a loan almost instantly by utilising this feature. In addition to this, you can also convert large purchases charged on your card into EMIs, thereby allowing you to repay the huge sum over a period of time in Equated Monthly Instalments (EMIs). 


With so many features and benefits to utilise, Credit Cards have now become a must-have financial instrument in this day and age. And to top it off, applying and getting a new Credit Card is also easier than ever. All you need to do is check to make sure you satisfy the ICICI Bank credit card eligibility criteria. And if you do, you can simply apply online and get yourself a new card in no time.




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