What exactly is a credit card?

In layman terms, a credit card is a plastic card issued by financial institution offering line of credit to its customer to purchase goods or services. The credit has a limit which restricts the user to spend more than a specified amount, which is set by the institution who offered the credit card at the first place.

What’s the difference between a credit card and a debit card?

A debit card is a medium to use the money you have already deposited in your bank account. That means the money you spend is yours and you have deposited it in the account before using it. On the other hand, a credit card is a form of loan that is not related to your personal bank accounts.

What is meant by an Add-on card?

Sometimes the user may want to have more than one users of the same credit card. In such a case, the financial institution issues additional cards which are related to one single credit card account. Add-on cards don’t get additional limits but they can have separate PINs.

What can one do with the reward points received on making purchases?

The “Shop and Smile Rewards” program from SBI allows its users to earn reward points and redeem them whenever they need. Your reward points will keep on accumulating and you can redeem them at partnered outlets or purchase anything from electrical appliances to lifestyle accessories.

Is there any change in tax after GST??

Previously, there was a service tax of 15% and now it will be charged as 18% at the GST rate.

What could be the possible reasons for rejection of SBI credit card application?

The reason could be anything from low credit score, eligibility criteria etc. In such a situation the applicant should wait for the rejection letter to come back and it will have all the reasons for rejections mentioned. Any further queries can be resolved by contacting customer care.

How to check credit card usage?

There are many ways to check your credit card usage or balance: you can use Net banking, Mobile banking, visit nearest branch, ATM, calling customer service or opt for monthly statements and SMS alerts.

What are the various credit cards offered by SBI?

SBI offers a wide range of credit cards that are specially designed to meet your needs as per your usage. They can fall under five major categories:

Premium cards
Travel and Shopping Cards
Classic Cards
Exclusive cards
Corporate cards
The most popular cards from SBI are SBI Signature card, SBI Platinum Card, SBI Gold and More Card, IRCTC SBI Card, Air India SBI Signature Card and Air India SBI Platinum Card.

How to go about redeeming the SBI credit card reward points?

The reward points you accumulate on SBI credit cards can be redeemed online by logging into SBI cards official website. They can also be redeemed by directly going to the partner stores. Alternatively, you can also call SBI Card Helpline on 39020202 (Prefix STD code) to redeem points. Points can be redeemed only if they are in multiples of 2000 points unless stated. You have the option to choose from over 174+ products from different categories like Accessories, Apparel, Electronics, Entertainment, e-Voucher, Health and Fitness, Home-ware, Kids Zone, Luxury, and Travel & Holiday.

How can I pay SBI credit card bill online?

When a customer uses a credit card for shopping, he receives a bill that has to be paid within a fixed time. If customer is not able to pay bill on time, he will have to bear late payment charges. The interest and applicable taxes can also come into play when payment is delayed. This thing is common to those who do not use convenient online methods to pay bills and instead depend on cash and cheque.

Bill can be paid by logging into Internet Banking portal of SBI under the Bill Desk section. You can even use Internet banking facility of other banks to transfer the due amount to your SBI credit card. You can also use mobile banking and activate the Electronic Clearing Service to pay bills on or before time. Online methods are much more convenient than offline methods like dropping a cheque at bank ATMs or depositing cash at branches.

Customers can also pay State Bank of India (SBI) credit card dues via YONO app and get their limit restored instantly.

Steps to link SBI credit card on YONO app

Login to YONO by SBI App using your MPIN (Mobile banking Personal Identification Number) or SBI Internet banking credentials.
Under the ‘My Relationships’ column, go to ‘My Credit Cards’ section, click on ‘Link SBI Credit Card’.
Enter the username or password (same as you use on sbicard.com)
Click on the option to send OTP and enter the OTP you received on registered mobile number.
That’s it! Your SBI credit card has been successfully linked to YONO app.
Steps for making payment of SBI credit card via YONO app

Login to YONO portal by SBI App using your MPIN or SBI Internet Banking Credentials.
Go to ‘My credit cards’ section under ‘My Relationships’ to select the card you want to make payment for.
Click on the details of the credit card and go to the summary page of your card. Then, click on ‘Pay Now’ to go to the payment page.
Select the SBI account for making payment.
Enter the amount and click on ‘Pay Now’ for completing the payment.

Effect of savings account balance on CIBIL score

There is no effect of savings account balance on CIBIL score. A credit score is completely based on credit-related activity regarding loans and credit cards only. Neither your savings nor your current account balance has to impact your credit score.

How can zero credit affect your creditworthiness?

You might think that it might be a positive thing on your report. But, it can actually backfire. Lenders are interested in knowing your repayment history and how good are you at repaying debts. If you don’t have a credit card or loan then how will the lender know about your repayment habit? You become a risky deal for your lender and thus, processing may take time and additional documentation would be required. Not having a sufficiently long credit history could make your credit score suffer.

Control Number

CIBIL uses a nine-digit number to track your reports that are also known as the control number. The control number is generated when banks have to access your credit report. You can see it at the top right corner of your CIBIL report. This number serves as a reference to all your information and connection with CIBIL

How can you correct errors in your CIBIL reports?

If you find any errors in your CIBIL report then you can rectify your errors online at the website of CIBIL. Go to “Dispute resolution” in the Consumer Bureau section.

Can CIBIL carry out the corrections in my report?

Obviously, but this can only be done if the change is approved by the concerned bank or lender.

Can employers access my CIBIL credit score?

Generally, employers check the credit score of employees to evaluate their financial maturity and stability. If you look at some more developed countries in the west then even potential landlords, electricity companies or mobile phone providers also look at your credit score for examining your credit potential.

Does my employer’s credit profile affect my loans?

Yes, if you work for a company that is a defaulter or if it has been blacklisted by lenders, then for sure you have great chances of loan rejection.The reason is quite obvious, your employer’s defaulted loan indicates that they are not reliable and consequently your source of income also becomes non-reliable. Therefore, lenders would doubt your ability to repay the loan.