How to get the credit card. Documents required for credit card.

An Overview of Credit card function.

Credit card Processing.

The best way for a beginner to get credit is to apply for a credit card meant for a beginner. If you already have a checking or savings account, check to see if your bank has a credit card for someone with limited credit history. Typically, a person must be 18 to receive a credit card.

Complete credit card application form Salaried in MNC-salary slip/certificate Other credit card holder-photocopy of front & back credit card. Salaried in Pvt ltd-latest copy of salary slip last 3 months bank statement. Self employed-latest personal income-tax Return & business card.

Merchants often advertise which cards they accept by displaying acceptance marks generally derived from logos or may communicate this orally, as in "We take (brands X, Y, and Z)" or "We don't take credit cards". When a purchase is made, the credit card user agrees to pay the card issuer. The cardholder indicates consent to pay by signing a receipt with a record of the card details and indicating the amount to be paid or by entering a personal identification number (PIN). Also, many merchants now accept verbal authorizations via telephone and electronic authorization using the Internet, known as a card not present transaction (CNP).

 Electronic

verification system. Data from the card is obtained from a magnetic striper or chip on the card. For card not present transactions where the card is not shown (e.g., e-commerce, mail order, and telephone sales), merchants additionally verify that the customer is in physical possession of the card and is the authorized user by asking for additional information such as the security code printed on the back of the card, date of expiry, and billing address.

Credit Limits and Available Credit

Your credit card has a credit limit. During a billing cycle, you can charge up to your credit limit without receiving any penalty. If you charge more than your credit limit, you will be assessed an over the limit fee each billing cycle your balance is over the credit limit. As your balance increases, your available credit decreases. If you have a credit limit of $300 and make a $100 purchase, your balance is now $100 and your available credit is $200 ($300 - $100).

At the end of each billing cycle, a billing statement will be mailed to you. Billing cycles typically range from 29 days to 31 days, but can be shorter or longer depending on your credit card. Your statement will include the balance at the beginning of the billing cycle (what was carried over from the previous month). It will detail credit card charges and payments as well as credits and fees in the current billing cycle. Fees and charges are added to the balance from your previous billing cycle, while payments and credits are subtracted to come up with your current balance.

If you carry a balance from the previous billing cycle, a finance charge will be applied. The finance charge is calculated using the annual percentage rate and one of six methods: average daily balance, double billing cycle, previous month's balance, adjusted daily balance, ending balance, or daily balance. Note that after June 30, 2010, new credit card rules prohibit credit card issuers from using the double billing cycle method to calculate finance charges. If you did not carry a balance from the previous billing cycle, you should pay your full balance within the grace period to avoid a finance charge. Your next billing statement will include a finance charge, if you don't pay your balance in full.

You must make the minimum payment listed on your billing statement before the payment due date to be considered current. Current means you are not late on any credit card payments. Typically, the minimum payment is calculated as a percentage of your credit card balance. If you make less than the minimum payment or you make the payment after the due date, your payment is considered late and you will be charged a late fee. When you are more than 30 days late, the late payment is placed on your credit report. When you make a payment on your credit card, the amount of the payment is subtracted from the balance. Your balance decreases and your available credit increases.

Keep in mind much of this process applies to revolving credit cards rather than charge cards. As you make charges and payments with your credit card, your balance and available credit will go up and down. Pay attention to your billing statement for minimum payment and date due. To keep good credit you should make at least the minimum payment each month and stay well below your credit limit.