A Debit cum Credit Card, to put in simple words, helps you enjoy an overdraft facility on your debit card. You can use this card primarily as a Debit Card and, in case the balance in your account gets over, you may use the same card as a Credit Card. The credit limit is predetermined by the bank depending on your spending habits and eligibility criteria.
The banks know it all…you should too!
Currently, the Debit cum Credit Card is not very popular in India and not all banking institutions issue these cards. Only some banks like IDBI, IndusInd and a couple of other banks issue these cards at no extra cost. These cards are issued mostly when the banks are convinced about the credit standing of the individual.
The eligibility criteria is determined by the bank based on different factors; for instance, 2-3 times of the take-home salary is generally issued as the credit limit and even if the individual has Fixed Deposits or NSC certificates or other deposits, he/she would be eligible for a higher credit limit. However, different banking institutions have their own rules for setting up the credit limit for an individual.
What can you do with a Debit cum Credit Card?
The Debit cum Credit Card comes at no additional processing fees; although some banks may have an initial charge depending on their policies or market conditions. However, one of the interesting facts is that the interest rates charged on the Debit cum Credit Card is usually lower than that charged on normal Credit Cards. Also, since this card acts as a Debit Card, the extra charges on ATM withdrawals are not applicable for these cards.
The Debit cum Credit Card also comes with a couple of additional features like Insurance cover benefits or accumulation of reward points. Sometimes these cards are eligible for special discounts or offers from various merchants too.
Pitfalls of a Debit cum Credit Card
Like all other good things, the Debit cum Credit Card too comes with a drawback! The major one being that you do not enjoy any interest-free period and you will have to pay interest for the entire period in case you overdraw.
All you know about the card!
To sum it up all, the Debit cum Credit Card is undoubtedly a smart and useful means of having cash at your disposal even without having to carry it in your pocket. Also, you need not carry two different cards in your wallet or pocket, and yet enjoy the benefits of a Credit and Debit Card. Speaking of benefits, the interest rate that you pay on a Debit cum Credit Card is lower than that of a normal Credit Card; and in fact, it is much lower to that of Personal Loan interest charges as well. Additionally, there is no cash withdrawal charge unlike when you withdraw cash using your regular Credit Card.
But that should not be a hindrance for you to opt for a Debit cum Credit Card as the number of advantages are far more when compared to the drawbacks. Opt for a Debit cum Credit Card and get to spend without having to worry about your credit limits or available cash in hand!
