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Every credit card user wonders, ‘how to know credit card balance’ at least once. Before learning about that, you need to understand that the card balance differs from the credit limit. The credit limit is the maximum amount sanctioned by the issuer, but the balance is the remaining credit limit after its usage. 

By initiating a regular balance check, you can plan your finances and clear your dues on time. Read on to learn how to know credit card balance online and offline, the advantages of checking it periodically and more. 

Credit Card Balance Check

You can easily check your balance using various options that the issuer provides. Doing so helps you stay on top of your finances without much hassle. This is because it tells you about the total amount you have utilised, which you must repay on time. 

It also tells you how much more you can spend using your card. This ensures, that your payment does not fail when you make transactions online or offline. 

How to Check Your Credit Card Balance Online?

Before initiating a transaction or to keep track of your finances, here’s how to execute a credit card balance check online.

• Net Banking

To check your balance via net banking, your card must be registered for the net banking service. After registration, you can log in to your account with your user ID and password. Upon login, you will see all the options related to your credit card services on the dashboard. 

This includes card balance, available balance, next due date, card limit and more. Choose the right option, which is to check your outstanding balance. 

• Mobile Banking App

Such apps simplify the process of checking your credit card balance instantly. You can download your issuer’s mobile banking app from the Google Play Store or App Store. After you log in to the app with your credentials, select the relevant option from the menu to see your balance. 

Apply for Loan Against Mutual Funds 

Checking Balance Offline

If you cannot log in to your issuer’s net banking and mobile banking accounts, here are alternative options to check your credit card balance offline. 

• Monthly Credit Card Statement

Issuers generate a monthly statement at the end of every billing cycle and send it to your email. This will include your balance, among other details, to keep track of your credit card usage and costs. You can even request your card provider to send a physical copy to your registered address.

• Customer Service

Card issuers have a dedicated customer support team that can give you the required information about your credit card after verifying your details. Simply call customer care to get an update on your balance anytime.

• ATM

You can also check your balance at your nearest issuing bank’s ATM. Simply insert your card into the ATM and select the relevant option. After entering your PIN, you will get your updated balance instantly. 

• Nearest Bank Branch

You may also visit your bank branch and request the banking executive to check your balance. They will ask you a few details of your card to verify your identity. As this is a time-consuming process, its best to consider it as a last resort. 

Why Check Your Credit Card Balance Periodically? 

As a frequent credit card user, you should be aware of the benefits of running periodic credit card balance checks. Here are a few of them:

• It helps you understand the available balance on your card so you can spend smartly 
• It helps you keep a tab on any unauthorised payments or fraudulent transactions
• It helps you raise disputes against any fraudulent activities as soon as possible 
• It helps you stay up to date with the charges levied by your card provider in case you go over the limit  

With this, you know most of the advantages of keeping track of your credit card balance. By spending responsibly, you can enjoy the benefits of your credit card to the fullest. If you want to enjoy such numerous perks, you can opt for the Fibe Axis Bank Credit Card. 

This RuPay credit card offers you cashback of up to 3% on shopping, food delivery, and other transactions. What’s more, it has zero joining and annual fees, so you don’t have to worry about additional charges. With India’s first numberless credit card, you can shop endlessly with minimal risk, as this card links straight to your UPI ID. 

Simply download the Fibe Instant Loan App or register on our website and apply hassle-free!

FAQs on Checking Credit Card Balance

Can I call to check my credit card balance?

Yes, you can call your bank’s customer care to get your credit card balance on the phone.

How to check credit card balance limit?

You can log in to the issuer’s net or mobile banking portal or call customer care to get your balance quickly. Some issuers also offer SMS banking facilities.

How to check credit card balance through SMS?

If your issuer offers this option, you need to register for SMS banking and then send a text in the designated format. Shortly after, you will get your balance via text.

A credit card offers customers the convenience of cashless payments along with financial flexibility for shopping, travel and emergencies. Every credit card comes with a pre-approved spending limit, known as the credit card limit, which is the maximum amount a customer can use.  
With credit card usage in India crossing ₹1.8 lakh crore in monthly spending, banks carefully decide these limits based on factors such as income, credit score, repayment history and existing debts. 
 
Read on to understand how credit limits are set and what steps you can take to get a higher one. 

What is Credit Limit in a Credit Card?  

The credit limit is the maximum amount you can spend on your credit card in a billing cycle. The card issuer sets this limit after checking your credit profile, income and repayment history. Each card has a fixed monthly limit. You can use the card for purchases or payments only up to that limit. Once you reach it, new transactions will be declined until you repay the dues. 

When you pay your bill in full, your credit limit is restored. But if you cross the limit, it can affect your credit score negatively. It can even lead to higher charges on the outstanding amount. 

How Card Issuers Determine Your Credit Card Limit?  

Credit card issuers look at a few key factors before setting your credit limit. Here’s what they consider: 

• Income and Job Stability 

Your monthly and yearly income play a big role. Issuers also look at how stable your job is, how long you’ve been with your company and the type of job you have. A full-time, long-term job in a reputed company usually improves your chances of a higher limit. 

• Spending Habits 

How you use your money matters. If you pay bills on time and don’t overspend, you’re seen as responsible. But if you regularly use up your entire limit, banks may perceive this negatively. 

• Debt-to-Income Ratio 

This compares your monthly debt to your income. A high ratio means less room for new credit. Issuers may lower your limit if they feel repayment could be tough. You can improve your ratio by reducing debts, increasing repayments and avoiding new loans. 

• Existing Credit Usage 

Issuers also check how much debt you already have. If you’re juggling multiple loans or cards, they may give you a lower limit. Keeping your dues low and credit usage under control shows you can handle more credit. 

• Repayment Track Record 

Paying your full dues on time boosts your credit image. If you have a clean repayment history, issuers are more likely to offer a higher limit when you request one or when your income grows. 

What are the basic eligibility criteria for a credit card? 

Before applying for a credit card, banks and financial institutions usually check a few important factors to determine your eligibility. Here are the most common criteria: 

1. Age Requirement 

• Applicants should generally be 18 years or older. 

• Some banks may require the applicant to be 21 years old for premium credit cards. 

2. Stable Source of Income 

• Salaried or self-employed individuals should have a regular and stable income. 

• Income helps lenders assess your repayment capacity. 

3. Credit Score 

• A good credit score (usually 700 or above) increases the chances of approval. 

• It reflects your credit repayment history and financial discipline. 

4. Employment Status 

• Banks may prefer applicants who are: 

• Salaried employees with a stable job 

• Self-employed professionals/business owners with consistent earnings 

5. Minimum Monthly/Annual Income 

• Most credit cards require a minimum income threshold. 

• The required income may vary depending on the type of credit card. 

6. Residential Status 

• Applicants are generally required to be: 

• Indian residents, or 

• Non-resident Indians (NRIs) meeting specific bank criteria 

7. KYC & Documentation 

• Basic documents are needed for verification, such as: 

• PAN Card 

• Aadhaar Card 

• Address proof 

• Income proof or salary slips 

8. Existing Financial Obligations 

• Banks may review your current loans or EMIs to check your debt burden. 

• Lower existing liabilities can improve approval chances. 

9. Relationship with the Bank 

• Having an existing savings account, salary account, or loan relationship with the bank may improve eligibility and approval speed. 

Credit Card Limit Calculator  

While a calculator that calculates your exact credit card limit is still a work in progress, you can do minimal calculations to get an estimate.   

Step 1: Check your credit score 
Firstly, check your credit score. A score above 750 improves your chances of approval. 

Step 2: Aim higher for better limits 
The closer your score is to 900, the higher your chances of getting a better credit limit. 

Step 3: Calculate your debt-to-income ratio 
Divide your total monthly debt by your net monthly income to get this ratio. 

Step 4: Keep the ratio low 
A lower debt-to-income ratio shows good repayment capacity. It can help you qualify for a higher limit. 

These steps can help you get a fair idea of what credit limit you might receive.  

Also Read: Learn To Use Credit Card Responsibly  

How to Increase Your Credit Limit? 

Here are some simple ways to increase your credit card limit over time: 

• Maintain a good CIBIL score: Keep your credit score above 750 by paying dues on time and avoiding excess borrowing. 

• Use less credit: Keep your credit utilisation under 30% to show you’re not dependent on your card. 

• Show extra income: Share proof of other income sources like rent, dividends or investments to support your request. 

• Update salary details: If your income has increased, submit your latest salary slips to your card issuer. 

• Apply for another card: If eligible, get a second credit card to raise your total credit limit. But, avoid applying with multiple issuers at once. 
   

Also read: Apply For Instant Personal Loan  

Advantages of Increasing Your Credit Limit 

A higher credit limit gives you more spending flexibility and can also help improve your overall credit health. 

• More money available for shopping, bills, or emergencies 

• Helps improve your credit score by lowering credit usage 

• Easier to manage bigger expenses when needed 

• Better chances of getting loans or credit cards in the future 

• More flexibility in monthly spending 

• Higher spending can help you earn more rewards and cashback 

• Extra financial support during unexpected situations 

• Access to better card offers and benefits 

Impact of credit score on your Credit Card limit  

Your credit score plays a critical role in determining your credit card limit. Here’s how:  

1. Higher Score = Higher Limit 
A strong credit score (typically 750+) signals to the bank or lender that you’re a reliable borrower. This often results in:  

• Higher credit limits  

• Better offers and rewards  

• Faster approvals  
   

2. Moderate Score = Moderate Limit 
If your score falls between 650–749:  

• You may still get approved, but with a lower credit limit  

• Lenders might view you as somewhat risky  

• Your spending power on the card could be limited initially  

 
3. Low Score = Low or No Limit 
A score below 650 might lead to:  

• Rejection of your application  

• Very low credit limits if approved  

• Higher interest rates or the need for a secured card  

Also read: Apply For Instant Cash Loan Online 

How to Check Your Credit Limit Online? 

You can check your credit card limit quickly by calling customer care and following the IVR instructions. You can even visit your nearest bank branch to ask directly. Here’s how you can do it online: 

• Internet banking: Log in to your bank’s net banking portal and check the credit limit under the credit card section. 

• Mobile app: Open your bank’s mobile app, log in and view your credit limit in the card details section. 
   

Choose the Fibe Axis Bank Credit Card to enjoy a high credit limit as per your eligibility. As India’s first numberless credit card, it offers a host of benefits ranging from complimentary access to domestic airport lounges to cashback of up to 3%. You can also link this RuPay card to your UPI and complete transactions without any hassles.   

Download the Fibe App or register on our website to apply online for this lifetime-free credit card!   

FAQs on How Credit Card Companies Determine Credit Limit 

What is the credit card limit for a salary of ₹40,000?   

Issuers calculate credit card limits through different methods. It’s generally 2 – 3 times your current monthly income. If your salary is ₹40,000, your credit limit may be between ₹80,000 to ₹1.2 lakhs.   

What is the credit card limit for a salary of ₹50,000?   

The maximum limit in India for a salary of ₹50,000 usually goes up to ₹1.5 lakhs if the issuer uses the 3X calculation. However, this also depends on your:  

• Age  

• Credit score   

• Existing obligations  

• Debt-to-income ratio  

• Credit utilisation ratio  

What is the credit card limit for a salary of ₹30,000?   

The minimum and maximum limit on a ₹30,000 monthly salary is based on a variety of factors. However, the minimum credit card limit in India is 2 times your monthly income and the maximum can be 3 times. This comes to a credit limit between ₹60,000 and ₹90,000.   

What is the credit card limit for a salary of ₹25,000?   

It starts from ₹50,000 and extends up to ₹75,000 if the card issuers use the 2X-3X method of calculation.   

What is the credit card limit for a salary of ₹18,000?   

If a person has a salary of ₹18,000, the credit card limit they can enjoy may range between ₹36,000 and ₹54,000, i.e., 2X to 3X of their monthly salary.   

How much credit limit should I have based on my income?   

The minimum credit card limit in India is generally 2 times your monthly income, and it can go up to 3 times.   

What is the minimum credit card limit in India?   

In India, the minimum credit limit is usually twice your monthly salary. However, it also depends on your creditworthiness, existing debt and income. 

If you want to send money from credit card to bank account instantly, you’ll be glad to know it’s a simple process that can help you manage urgent expenses when your bank balance is low. It’s also useful when you can’t use your credit card directly for certain payments.  

This blog explains how to transfer money from a credit card to a bank account step by step, what to keep in mind, and how to make the transaction hassle-free and secure. 

Reasons to Transfer Money from Credit Card to Bank Account 

Sometimes, you need quick cash in hand. Transferring money from your credit card to your bank account can help cover urgent payments without delays. Here are a few reasons: 

• To manage sudden cash emergencies 

• When your bank balance is low 

• To pay for expenses where cards aren’t accepted 

• To avoid overdraft charges 

• For urgent bill payments 

Different Ways to Transfer Money from Credit Card to Bank Account  

Knowing how to transfer credit card cash to a bank account can help you tackle unexpected expenses with ease. Simply follow the below process while transferring money from a credit card to a bank account online: 

Through eWallet 

• Download the digital wallet or mobile app on your phone 

• Go to the ‘Passbook’ section and select ‘Send money to bank’ 

• Section the ‘Transfer’ option in the menu 

• Input the amount, the beneficiary’s IFSC details and account number 

• Click on the ‘Send’ option to complete the credit card to bank transfer 

Through Net Banking 

• Log in to the net banking account associated with your credit card 

• Under the credit card tab, choose ‘Transfer’ and click on ‘Transfer to Bank Account’ 

• Enter the amount and bank account details and fill in the required details 

• Complete the credit card to bank transfer after verifying it with an OTP 

Through Phone Call 

• Call your credit card issuer 

• Request a transfer of funds from your credit card to your bank account 

• Verify the amount you wish to transfer to your bank account 

• Give the required bank account details and other information to the representative 

• Follow the instructions given by the representative to complete the transfer 

Also Read: Pay Credit Card Bill Using Another Credit Card. 

How to Transfer Cash to a Bank Account from a Credit Card Offline?  

Here’s how you can transfer money from a credit card to a bank account through the offline mode: 

1. Visit an ATM nearest to you and enter the card in the machine slot 

2. Choose the ‘Cash Withdrawal’ option and type in the amount you plan to transfer 

3. Enter the PIN of your credit card and click on the ‘Enter’ option to receive the cash 

4. Deposit the cash into your bank account via the bank’s deposit facility 

5. Write a cheque or get a money order for the amount you wish to transfer and deposit it in your bank account 

Steps to Transfer Money from Credit Card to Bank Account 

• Pick a method: Use your bank’s app or a trusted payment app. 

• Enter bank details: Add account number, IFSC, and amount. 

• Select your credit card: Choose it as the payment source. 

• Confirm & transfer: Verify with OTP and complete the transfer. 

Tip: Always check fees before you send money from your credit card to the bank account instantly. 

Also Read: Learn to Use Credit Card Responsibly 

In case of emergencies, knowing how to transfer cash to a bank account from credit cards can help you tackle your urgent needs effortlessly. However, consider the associated costs of transferring funds from your credit card.  

If you’re on the lookout for a credit card that makes managing your finances easier, check out the Fibe Axis Bank Credit Card. It is the first numberless card with enhanced security features. With added benefits such as zero joining fees and up to 3% cashback, you can use it to boost your purchasing power!  

Apply for it now on the Fibe App or website.  

FAQs on How to Transfer Credit Card Cash to a Bank Account 

Can I transfer money from a credit card to a bank account?  

Yes, you certainly can! However, remember that it is not possible to send money from a credit card to a bank account for free. You have to pay certain transfer charges. Here are some ways to do it: 

• Phone call 

• Net banking 

• e-Wallet 

Can we transfer money from a credit card to GPay?  

No, it is not possible to transfer money from your credit card to Google Pay or GPay. You can only use it to send money. You can make your credit card the primary payment mode when initiating transactions with merchants and other users.  

Are there any charges if we withdraw money from a credit card?  

Yes. When you withdraw money using a credit card, issuers levy cash advances or withdrawal fees. This can be anywhere between 2.5% and 3% of the total withdrawn amount.  

How can you withdraw money from a credit card without incurring a fee?  

It is possible to withdraw funds via your credit card without incurring any fees via credit cards with zero cash advance fee.  

Is it advisable to withdraw cash from a credit card?  

Yes, it is a quick and simple way to get cash whenever you need it. However, pay attention to the cash advance charges to plan better.  

What are the fees associated with withdrawing cash from a credit card?  

Credit card issuers apply for a cash advance fee when you withdraw cash via credit card. While it varies with the issuer, it’s generally a percentage of the amount you withdraw.  

Keeping credit card and debit card differences in mind can help you choose your preferred option to achieve your financial objectives. As two of the popular modes of payment, these cards simplify your shopping experience by avoiding the risk of carrying cash. Both cards share some common features, while their key benefits vary vastly. 

Choosing the right option can be helpful in managing your financial requirements. If you understand the specific differences between these cards, you can apply for your preferred one. Read on to understand the benefits of each. 

A Guide to a Debit Card

A debit card is a complimentary card that you can use to withdraw money from an ATM or use to buy goods or services. With each transaction, money is deducted from your account. That said, here are some features to note:

• Upon opening a bank account, this card is provided to you automatically so there’s 

no need to apply for it

• This card is associated with the same account and you can use it to access all the available cash
• Since these funds are yours, there is no need to pay interest when utilising them

A Guide to a Credit Card

To get this card, you must send an application to your preferred issuer. It may approve your application based on your credit profile and its policies. Here are some other features you should know:

• It comes with a fixed credit limit, using which you can transact online or offline
• There is no interest applicable during the grace period, after which you need to pay your credit card bill
• After bill payment, the limit gets restored for the next billing cycle
• Interest only applies to the outstanding balance, if any
• Depending on the issuer’s policy, you can enjoy up to 50 days of interest-free period
• Enjoy perks such as reward points, cashback, discounts, fuel surcharge waivers and more 

Difference Between Credit and Debit Cards

Check out some key differences between credit cards and debit cards listed in detail below.

Parameter	Credit Card	Debit Card
Interest Charges	You borrow from the issuer. Thus, an interest applies if you do not pay the bill by the due date. Delaying payments will also attract a late payment fee.	Transactions are interest-free, as you use the funds directly from your bank account.
Cash Withdrawals	If you use it to get cash, you will have to pay a high fee. This charge depends on the issuer’s policies and the amount you withdraw. Moreover, it has a limit on how much you can withdraw as cash.	It allows you to access cash with ease at any ATM. The fees that apply are minimal.
Credit Score	Your repayment behaviour and credit card management can improve or damage your credit score.	Debit card transactions do not affect your credit score.
Annual Charges	You need to pay a renewal fee for most cards. Some issuers may waive these charges if you meet the transaction milestones.	You typically pay nominal annual maintenance charges.
Spending Limit	You get a limit based on your credit profile and the issuer’s policy. If you need additional funds, you can also request the issuer to increase your limit.	Debit cards have a spending limit of up to your account balance. Your account needs to have money for you to use this card.

When to Use a Credit Card and Debit Card

To access funds from your current, savings or salary account, you need a debit card. On the other hand, if you see that the funds you are willing to use are not sufficient or not available at the time, you can choose a credit card to transact instantly and later repay the borrowed money.  

Now that you know what the main credit card and debit card difference is, ensure that you choose the ideal option. Having both cards in your wallet can help you manage your finances easily. Opt for the Fibe Axis Bank Credit Card and enjoy a plethora of benefits.

From up to 3% cashback to fuel surcharge waivers and complimentary domestic airport lounge access, this card helps you upgrade your life. Download the Fibe Instant Cash Loan App or register on our website to apply now.

FAQs on the Difference Between a Credit Card and a Debit Card

What is the main difference between a debit and a credit card?

A debit card accompanies a bank account, where the amount debited is taken from in the account. A credit card is an independent product allowing you to utilise funds from the sanctioned limit, which you need to repay later.

How can I tell if my card is a debit or credit card?

You can analyse if your card is a credit or a debit card as this is mentioned on the front of the card. In the case of a credit card, you need to repay the amount spent. With a debit card, you can withdraw funds directly from your bank account.

Which is better: A debit or a credit card?

The better option between them depends on your financial habits and requirements. The following differences can help you choose the right one.

• Credit cards offer a wide range of cashback and benefits that a debit card doesn’t provide
• There are no interest penalties on debit cards, but credit cards do levy these charges if you do not pay the bill in full by due date

Is an ATM card a debit or a credit card?

An ATM card is a debit card that gives you easy access to cash, which can be used only at the ATM. However, you can use a credit card and a debit card to make direct transactions or get cash from an ATM.

Can I withdraw money from a credit card?

Yes. You can withdraw money from the sanctioned and available limit. 

Can I use my debit card like a credit card?

Yes. To meet your urgent financial requirements, some bank’s debit cards offer an overdraft. This gives you surplus funds when you don’t have a sufficient account balance and attracts interest, similar to a credit card.

Credit card skimming is becoming a growing threat in today’s digital world. Scammers use a physical device called a skimmer to steal your credit card details. With your sensitive information at hand, they carry out fraudulent transactions using your card. 

To know about how skimmer works, what you can do to prevent it and more, read on.

What is a Card Skimmer?

It is a device that scammers often fit over the ATM slot or a merchant’s credit card terminal (PoS machine) to capture details present in the magnetic strip of your card. These details include the following:

• Full name
• Credit card number
• CVV number
• Expiry date

Using these details, fraudsters can make unauthorised payments using your card, which ultimately results in financial loss.

Common Ways of Running a Credit Card Skimming Scam

Credit card skimming equipment generally blends in with ATM and POS machines and is not easily detectable. But knowing where scammers use them often helps you stay vigilant. Here are some common places where you may find these devices: 

Fuel Stations

Here, skimming devices are often found at the point-of-sale terminal, which thieves use to create counterfeit cards.

ATMs

The skimming devices are fitted in the card slot to capture your details. Unscrupulous individuals may also fix a small camera near the number pad in the ATM to capture your PIN. Though this practice is not technically referred to as credit card skimming, be aware of it when you use in ATMs.

Retail Outlets and Restaurants

Sometimes, POS terminals at retail shops and restaurants may have skimming devices. A member of a skimming ring may secure employment at such stores to carry out this type of fraud. 

Shoulder Surfing

Here, the miscreant oversees you punching the code in the machine while posing as the next person in the queue to use the machine. 

What Happens If You Fall for Credit Card Skimming?

If your credit card statement shows an unauthorised transaction, you may be a target of fraud. By carrying out skimming of credit cards, fraudsters can perform these illegal activities:

Identity Fraud

By capturing your personal and card details, scammers can use the details to duplicate your account or take a loan in your name.

Card Replication

The thieves can also use your card details to create a counterfeit credit card and share it with other parties.

Unauthorised Purchases

Scammers can also complete transactions from online or physical stores using your credit card details. 

How to Spot and Prevent Credit Card Skimming

Although they blend well, credit card skimming equipment generally sticks out a little beyond the panel. If you find that an additional part is jutting out of the panel or if a part of the panel is loose, it may be a skimming device. Check the surroundings to avoid using these devices. 

Here are some other ways you can prevent credit card skimming:

Use a Chip Card 

Most credit card companies now issue chip-based credit cards. These offer a higher degree of security compared to one with a magnetic strip. If you still have a card with a magnetic strip, contact the issuer to replace it.

Use Contactless Payment 

Many credit cards now have WiFi-like icons, which means you can use them for contactless payments. Since there is no need to insert your card into any device, contactless transactions are comparatively safer. 

Can Contactless Cards be Skimmed?

Contactless credit cards offer better protection against traditional skimming techniques. These cards use a combination of encryption and verification to keep your credit card details. 

However, scammers are also upgrading their technology to bypass these security measures and steal your data. Some have been using specially created equipment that intercepts the communication between your card and the payment terminal to steal the details. 

That said, card issuers and payment networks constantly monitor these emerging threats and update their security measures to mitigate them.

An important aspect of keeping your details and finances secure is choosing the right issuer and card. With the Fibe Axis Bank Credit Card, you can ensure the best security as it is India’s first numberless card. It’s a RuPay card that you can link to your UPI ID, which helps eliminate the possibility of misuse through your card details. 

Additionally, it is a lifetime free credit card, so you need not pay any joining or annual fees. You can also enjoy cashback of up to 3% on every transaction, as well as other perks. Download the Fibe Personal Loan App or register on our website to apply for this card now!

FAQs on Credit Card Skimming 

How can you prevent credit card skimming?

You can prevent credit card skimming by opting for the following strategies:

• Get a chip card 
• Opt for contactless payments 
• Check the ATM slot and PoS machines
• Check your card statement for unauthorised payments

What is credit card skimming?

It refers to a form of theft where a miscreant uses a device to read and store your personal and credit card details. This information is used to carry out identity fraud and to make unauthorised purchases. 

What to do if your card is skimmed?

If you suspect skimming, block your card immediately and contact the issuer to inform them. 

Do credit card chips prevent skimming?

Yes. Chip-based credit cards are more secure than those having magnetic chips and can help prevent skimming.

Can skimmers read tap to pay?

No, because you don’t have to insert or swipe your card in a compromised machine. However, some scammers are using devices that can intercept the contactless transfer and steal your information.

Understanding the billing cycle of a credit card is crucial to ensure that you use your card efficiently and responsibly. A credit card billing cycle is roughly one month. Once this cycle is complete, the credit card company compiles your transactions and provides a statement detailing all essential information along with the total outstanding amount to be paid. 

After getting the bill, you have to pay the outstanding amount by the due date. Paying credit card bills on the due date or before is important to avoid additional charges being levied and your credit score being adversely affected. 

Understanding the concept of a billing cycle will not only ensure timely payment but will also help you manage credit card repayment better. Read on to know what is a credit card billing cycle and more.

Understanding the Credit Card Billing Cycle

A billing cycle refers to the period for which the issuer generates your credit card bill. This varies across issuers and generally ranges between 27 and 31 days. Your statement for a particular billing cycle will reflect all the transactions made using the credit card, including:

• Purchases
• Cash withdrawals
• Ongoing credit card EMIs

Here’s an example to understand the concept better:

Say your credit card billing date is the 5^th of every month. Considering this, your billing cycle will initiate on the 6^th of the same month and end on the 5^th of the following month. This will make the billing cycle of a credit card 30 days in total. 

Also Read: What is Credit Card Over Limit Fee?

What is a Credit Card Billing Date?

The credit card bill generation date is the end date of your billing cycle. Since it is the date when the issuer generates the statement for the previous month, it is also called the credit card statement date. In the example above, consider the bill generation date to be the 5^th of every month. 

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What Do You Mean by the Minimum Amount Due on a Credit Card Due?

To avoid late fees, you can pay a minimum balance or the minimum amount due (MAD) on or before the due date. The issuer decides this amount based on your outstanding balance for the month. 

By paying the minimum amount, you can carry forward the remaining balance to the next month and pay it along with the interest charged. Another option is to convert the remaining balance into affordable EMIs and repay it. 

While the minimum amount is usually 5% of the total credit card bill, remember that it can be a fixed amount as well. This, however, depends on your credit card issuer.

Does the Credit Card Billing Cycle Have Any Impact on Credit Score?

The billing cycle of a credit card does not have an impact on your credit score in any way. However, in case you delay your payments or pay only the minimum amount due, your credit score will take a hit. It is thus in your best interest to use your card judiciously and pay the total bill by the due date. 

If you’re looking for a credit card that helps you save while transacting safely, consider the 

lifetime free Fibe Axis Bank Credit Card. While you don’t have to pay joining or annual fees, you can also enjoy a cashback up to 3% on every transaction you make using this card. 

This numberless RuPay credit card also links to your UPI ID so you can pay seamlessly and securely. To get this credit card and make the most of all its benefits, download the Fibe Instant Loan  App or register on our website today!

FAQs on Credit Card Billing Cycle

When is a credit card bill generated?

An issuer generates the bill every month at the end of the billing cycle of the credit card, which generally ranges between 27 and 31 days.

What do you mean by the due date on a credit card?

This is the date by which you need to pay the outstanding balance. You can avoid paying interest and late repayment charges by paying credit card bills on the due date or before. 

What is the last bill due on a credit card?

This is the amount that you have not paid in your previous credit card billing cycle. Note that carrying forward any balance to the next month will attract an interest and late payment fee.

Credit card debt is the amount of money you owe to a bank or financial institution for purchases, cash withdrawals or balance transfers that are not repaid within your billing cycle. It is a revolving form of credit, which means the unpaid balance carries forward to the next month.

Since it is an unsecured facility, it usually comes with higher interest rates. If you do not clear the full amount by the due date, interest starts adding up. Over time, this can increase your outstanding balance through interest and late payment charges.

To know more about credit card debt, how to pay off this debt and its significance, read on.

What is Credit Card Debt?

Credit card debt shows up when you use your card limit to purchase an item but fail to repay the bill on time. This results in penalties and interest charges that further increase your outstanding balance, which can push you into a debt cycle.

Key Aspects of Credit Card Debt

• Revolving balance: If you do not pay your full bill, the remaining amount is carried forward to your next billing cycle. Your balance keeps rolling over until you clear it.
• High interest rates: Credit card dues usually come with higher interest rates compared to other loans, so your outstanding amount can grow quickly if not managed carefully.
• Minimum due option: When you pay only the minimum due, your card stays active. But interest continues on the remaining balance. This can increase your total payable over time.
• Unsecured facility: Since your credit card does not require collateral, lenders charge higher interest to manage their risk.
• Late payment charges: If you miss your due date, you may have to pay penalty fees along with additional interest.
• Credit score impact: Missing payments or delaying your dues can affect your credit score, which may impact your ability to get loans in the future.

Why is Clearing Credit Card Debt Necessary?

Apart from understanding what is credit card debt, knowing why you should clear it is just as crucial. Here’s why:

• It protects your credit score: When you delay or miss payments, your card issuer reports it to credit bureaus. This can lower your credit score and affect your ability to get loans in the future.
• Avoids default status: If you do not repay your dues for several months, your account may be marked as a default. This can seriously damage your credit profile.
• Prevents legal action: Continued non-payment can allow the lender to initiate legal proceedings against you to recover the outstanding amount.
• Avoids recovery follow-ups: In some cases, lenders may appoint recovery agents to collect the dues, which can become stressful to handle.
• Stops interest from piling up: The longer you delay repayment, the more interest and charges add up to your total outstanding.

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Tips to Clear Your Credit Card Debt

If your credit card dues are accumulating, here are some tips on how to clear credit card debt:

1. Refrain from Opening a New Line of Credit

If you are already in debt, avoid making another purchase using your credit card or taking a loan. Instead, try and use the card only during emergencies. This will help you avoid adding more to your balance.

2. Decide on a Debt Repayment Approach

If you have multiple debt accounts, there are three approaches you can follow to pay off your dues. These include:

• Debt Snowball: With this method, you start by clearing your smallest debt first. At the same time, you continue paying the minimum amount on your bigger debts. As each small balance closes, you move on to the next one.
• Debt Avalanche: In this approach, you focus on paying off the debt with the highest interest rate first. You keep making minimum payments on the others. This can help you reduce the total interest you pay over time.
• Balance Transfer:  You can even shift your outstanding amount from one credit card to another card that charges a lower interest rate. This reduces the interest you pay and can make it easier for you to clear your dues faster.

Create a Budget and Stick to It

You can start by writing down what you earn each month and what you spend on essentials, savings, investments and existing debts. Seeing it all in one place will help you understand how much you can set aside for your credit card repayment. Try to cut back on a few expenses that can be delayed. You can use the extra funds to clear your dues faster. And make sure to stick to the plan for better results. 

Also Read: Learn To Use Credit Card Responsibly

Consolidate Your Debt 

You can simplify multiple credit card dues by taking a personal loan to consolidate your debt. Since personal loans often have lower interest rates than credit cards, you can use the loan amount to clear all your outstanding balances and then repay a single EMI every month. This can help reduce your overall interest cost and make your repayment easier to manage.

Now that you know all about debt on credit cards, use your card wisely and also choose the right card to save on every swipe. To earn exciting rewards on every transaction, you can bank on the Fibe Axis Bank Credit Card. It is a lifetime-free credit card, with no joining and annual fees. Moreover, it lets you enjoy up to 3% cashback benefits on all your spends. 

A RuPay credit card, it offers you the facility to link it with a third-party UPI application for safe and secure transactions. Download the Fibe App or log in to our website to apply for this credit card and enjoy exciting discounts and offers!  

FAQs on Credit Card Debt

How can I get out of credit card debt?

You can adopt key strategies to clear your debt, the first one being planning repayment by creating a budget and sticking to it. It is also imperative to avoid taking another loan unless it is for consolidation. You should also decide on your repayment strategy based on your finances to quickly settle your debt. 

What happens if I don’t pay my credit card for 5 years?

If you don’t pay your credit card bill for an extended period, your credit score will keep on falling. Moreover, the issuer will term your account as default. They may also take legal action against you and employ debt collection agents to recover the due amount.

Can I call a credit card company and settle?

Yes, you can call your card issuer and ask about settling your credit card debt. But keep in mind that choosing a settlement can lower your credit score. So, think it through and check all your options before making a decision.

Have you heard of the term ‘settlement of credit cards’? This is an option you can rely on when you do not have the funds to pay your credit card bill in full due to the loss of a job or a financial emergency. 

It involves coming to an agreement with your credit card company where you pay less than the outstanding balance to settle your credit card debt. While it can be helpful in some ways, it can also decrease your credit score, which makes it challenging for you to get access to credit in the future. Opt for it only when you really need to. 

Read on to learn what is credit card settlement, the processes to follow and more.

What is Credit Card Settlement?

Credit card settlement does not mean that you clear your dues in full. Instead, it implies that you as the cardholder pay only a small part of your outstanding balance to the issuer. 

Here are the reasons why you may write a settlement letter for a credit card:

• If you don’t settle your credit card debt, your CIBIL score will continue to fall
• The issuer may initiate legal proceedings against you if you fail to inform them about why you have defaulted on repayment and request a settlement 
• You may not be able to apply for another credit facility until you settle your previous credit card debt

Also Read: Benefits of Using a credit card

Process of Credit Card Settlement

Here is the credit card settlement process you will need to follow to settle your dues:

• Step 1: Contact your credit card issuer or a debt settlement agency
• Step 2: Write a settlement letter for a credit card stating the reason why you are unable to repay the dues (if you have filed for bankruptcy, mention that as a reason)
• Step 3: If you can repay the loan in the future, mention in the letter that you wish to explore an alternative repayment approach (express your willingness to pay a lump-sum amount if you can pay it now)
• Step 4: Wait for your credit card issuer to reply

Note that the credit card companies may or may not accept your settlement request.

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How Credit Card Settlement Affects Credit Scores

The settlement of credit cards negatively impacts your credit score, but not as much as not repaying your dues. In India, the credit card settlement process is quite strict. Your credit report will reflect the settlement for the next 7 years. However, your credit score will bounce back gradually when you repay your other debts responsibly. 

Alternatives to Credit Card Settlement

If you can’t pay the bill in full, opting for settlement of credit cards may be the right option. However, there are some other options you can try to clear your current debt without a significant impact on your credit score:

Credit Card Balance Transfer

By choosing the balance transfer facility, you can transfer your outstanding balance from the existing card, which has a higher interest rate, to another credit card having a lower annual percentage rate (APR). This will help lower your interest rates and ensure you can repay the dues with some financial planning and prioritisation. 

Debt Consolidation with Personal Loan

A personal loan has a much lower interest rate compared to the credit card APR. Hence, you can get this loan to clear your credit card dues and significantly reduce the borrowing cost. Your repayment will also be in EMIs, which can help ease the financial strain caused by a huge credit card debt.

While credit cards have a higher range of interest rates, a personal loan offers funds much more affordably. Hence, you can consider availing of a quick and hassle-free Fibe Instant Personal Loan of up to ₹5 lakhs to clear your dues. These loans come with an easy repayment schedule, which can extend up to 36 months. 

Alternatively, you can opt for the Fibe Axis Bank Credit Card to enjoy added security and up to 3% cashback on your transactions. Download the Fibe App or log in to our website to apply online and enjoy a simple application process.

FAQs on Credit Card Settlement

Is credit card settlement good or bad?

Whether opting settlement of credit cards is suitable for you depends on your financial situation. Credit card settlement may be a good option if you find clearing your dues difficult. However, settlement can negatively impact your credit score. Hence, weigh its pros and cons and the alternatives before going for credit card settlement.

What is the effect of the settlement on credit cards?

Once you opt for the credit card settlement, the issuer terms your credit card account as a default. 

Can I get a credit card after settlement?

While you can’t use the same credit card after settlement, you can apply for a new one once your credit score bounces back.

Does CIBIL improve after settlement?

Once you apply for credit card settlement, your CIBIL score takes a hit. However, you can bring it back up by following good credit practices. Note that it will take some time for your score to bounce back.

Long security lines, crowded waiting areas and delayed flights can make your travel experience stressful. Credit cards that offer complimentary access to airport lounges provide an escape from this hustle and bustle. 

Airport lounges offer you a relaxing place with comfortable seating, complimentary WiFi, and food & beverages. You can access this facility not only on travel credit cards but also on many other premium variants.

To know more about the credit cards with lounge access and how you can make the most of this facility, read on. 

What are Lounge Access Credit Cards?

Access to an airport lounge is quite costly and available only to first-class and business-class travellers. However, you can also get access to airport lounges with specific credit cards. Here are some of the notable features of these credit cards:

• They usually provide complimentary or discounted access to airport lounges 
• These credit cards allow you to benefit from comfortable waiting areas and other amenities at these lounges
• Some lounge access credit cards offer air miles or other reward points, which you can use for other benefits, like discounts and offers 

How to Get Access to Airport Lounges with a Credit Card?

Long layovers during travel can be dreadful. However, credit cards with complimentary access to airport lounges can come to your rescue. While these cards work in different ways, you can generally enjoy this facility by following these steps:

• Step 1: Check your credit card issuer’s website to locate the partner airport lounge
• Step 2: Visit the lounge and go to the check-in desk to get access
• Step 3: Present your boarding pass and credit card for verification 
• Step 4: Once your verification is complete, the staff member will grant you access to airport lounges with a credit card

How to Check Airport Lounge Access on a Credit Card?

The issuers typically provide the details of the credit card, including the perks, rewards, and other benefits that you can enjoy on their website. Follow these simple steps to check whether your card offers complimentary visits to the airport lounge:

• Step 1: Visit the official website of the card issuer
• Step 2: Navigate to the credit card section and select your credit card
• Step 3: Read through the features and benefits on your credit card to find out if it offers complimentary access to airport lounges 

Benefits of Airport Lounge Access with Credit Cards

Thanks to credit cards, airport lounges are no longer exclusive to jet-setting elites. These are some of the advantages you can enjoy:

• Depending on the issuer’s terms, lounge access is available for free or at a discounted rate with specific credit cards
• You can enjoy various amenities, such as free access to a relaxing and comfortable waiting area, food, beverages, WiFi, etc.
• Some credit cards also offer air miles, which you can use to enjoy discounts on flight tickets

Factors to Consider When Choosing Cards with Airport Lounge Access

Complimentary visits to airport lounges are a coveted travel perk on credit cards. However, their benefits can vary depending on the issuer’s policies. When selecting a credit card offering complementary and discounted access to the airport lounge, consider these points:

• Assess the type of airport and lounges where you can get access with a credit card
• Check the number of complimentary visits that the credit card entitles you to
• Evaluate if the card offers lounge access to international and domestic airports or only to domestic airports and choose one based on where you travel frequently
• Check whether the card provides complimentary access to lounges or at a discounted rate
• Look for additional travel-related perks and other benefits, such as discounts on shopping, entertainment, etc. 

To enjoy 4 complimentary visits to domestic airport lounges coupled with a wide range of discounts and offers, get the Fibe Axis Bank Credit Card. Apart from visiting the airport lounge for free once every quarter, enjoy a cashback of up to 3% on every transaction and exciting discounts on dining. Download the Fibe App or log in to our website to apply for this card to enjoy these offers and discounts now!

FAQs on Credit Cards with Complimentary Airport Lounge Access

Is airport lounge access free with a credit card?

Yes, you can enjoy complimentary visits to airport lounges with certain credit cards. Check the credit card terms and conditions to know how many visits you can get with your credit card.

What is card eligibility for airport lounge access?

Credit cards with lounge access have varied eligibility criteria. For instance, here are the basic requirements you have to fulfil to be eligible to get the Fibe Axis Bank Credit Card:

• You must be a resident or non-resident Indian
• You must be a resident Indian between 18 and 70 years of age

Can my wife use my credit card for lounge access?

No, the person named on the card is the one who is allowed to use the credit card lounge access facility. 

How many times can we use airport lounge access?

The number of times you can enjoy credit card lounge access depends on the card you have. For instance, you get 4 complimentary domestic airport lounge access visits with the Fibe Axis Bank Credit Card.

What is complimentary domestic airport lounge access?

This refers to a feature of certain credit cards that only offer complimentary visits to domestic airport lounges. 

Can I use another person’s credit card for airport lounge access?

No, you cannot access this benefit if your name is not printed on the card.