Credit cards have become increasingly popular as they can be used conveniently for online and offline transactions. When you use credit cards to pay for your purchases, you can save money and also boost your credit score.
Apart from converting your total purchase amount into affordable EMIs, credit cards also help you monitor your transactions for better financial planning. With umpteen credit card options available, choosing the right one can be quite overwhelming.
Read on to understand why you must get a credit card and how using one can help you.
Some of the key credit card features that are common to most cards are listed below. Being aware of key features can help you make the right decision.
Purchasing expensive gadgets or paying costly medical bills can strain your finances. You can manage them easily using a credit card. With flexible EMI payment schemes, you can plan your monthly finances stress-free.
Remember that the repayment period and applicable charges vary as per the issuing bank’s policies.
Opting for other credit facilities during emergencies can be time-consuming. That is not the case with a credit card. Thanks to digitisation, you can apply for a credit card online and get speedy approval.
Make sure that you meet the required credit card eligibility criteria and submit the relevant documents.
The credit card limit varies across issuers and card types. A specific credit limit is set by the issuer based on your credit score and debt-to-income ratio. By displaying good repayment behaviour over time, you can get a credit card with a higher credit limit.
When you need immediate funds, you can take a personal loan against your credit card. However, do check the interest rate on such loans before you proceed.
While you can enjoy umpteen benefits of a credit card, a striking feature is the freedom to withdraw cash from ATMs when required. Note that credit card issuers levy additional charges for the same.
Check and compare various options before you zero in on a credit card issuer. This is crucial as it can affect your finances when there is an emergency cash requirement.
This is yet another essential credit card feature. While you can manage all your essential transactions with a credit card, you can also save as you swipe. Apart from cashback and welcome gifts, you can get special offers from select brands and partners.
What’s more, you can use your credit card reward points to purchase specific products and services. Simply redeem these points whenever you prefer and enjoy this prime feature of credit card usage with ease.
Most credit cards have advanced authentication and security features to ensure safe transactions. Some also allow you to enjoy contactless payments, while others offer chip and PIN security. You can also get fraud protection coverage from select cards.
When you get a credit card, you can access many benefits, like instant funds. Building credit scores, converting total purchase costs into EMIs or getting offers and discounts are other benefits of a credit card.
However, if you’re still wondering, “What are the benefits of a credit card?”, read on for the answer.
When you use a debit card, the amount gets deducted from your bank account. But that is not the case with a credit card. When you use a credit card to make a payment, you are borrowing money from the card issuer.
During times of emergencies when you do not have adequate funds, you can pay for goods or services using a credit card. Then you may repay at a later point in time when you have sufficient finances.
One of the biggest benefits of a credit card is that you can purchase all your favourite products right away and pay for them later. The payback timeline depends on the type of credit card you own and the date of the transaction. You can pay for your purchases anywhere from 20 to 50 days after you have made the purchase.
With every successful and on-time repayment of your bill, you build your credit history, which is a major factor that influences your credit score. A credit score is a three-digit number that represents your creditworthiness. The higher this score, the higher the likelihood of getting loans and other credit facilities at attractive rates.
With a credit card, you can purchase products and services on EMI. By converting large purchases into more affordable monthly instalments, you can reduce the impact they have on your finances.
This particular feature of credit cards enhances your purchasing power. It allows you to buy products and enjoy services which would have otherwise been out of your reach.
Almost all credit cards offer rewards when you use them to make payments. The rewards can be in the form of cash back or points that can be redeemed for discounts or gift vouchers. The type of rewards applicable can vary depending on the kind of credit card you own.
Now that you are well aware of the benefits and features of credit cards, it becomes easier to select the right card. If you are planning to get a credit card with numerous perks and privileges, find the option you want on Bajaj Markets.
With features such as affordable interest rates and simple eligibility criteria, you can get a card that best fits your lifestyle requirements.
There are umpteen credit card benefits such as reduced cash transactions, interest-free credit period, EMI conversion facility, reward points, cashback, and more.
Yes. Using a credit card affects your credit score as it helps build your credit history. Hence, it is important that you clear your credit card dues on time to protect your credit score.
Yes, one of the benefits of credit cards in India is the ability to withdraw cash from an ATM. However, certain credit card cash withdrawal charges may apply, and this varies from one issuer to another.
Just like all credit card features, welcome benefits offered by different cards are not similar. In other words, welcome benefits depend on the credit card issuer and the card type.
Cashback offers on first transactions at partner stores, e-gift vouchers, partner discounts, and complimentary flight miles are some of the most common welcome benefits. Some cards also offer free subscriptions to streaming platforms like Amazon Prime, Disney+ Hotstar, etc.
Maintaining a high credit score lets you enjoy three primary advantages. Firstly, due to strong creditworthiness, lenders would be more inclined to grant you access to high credit limits.
Secondly, since lenders often view individuals with high credit scores favourably, you may be eligible for lower interest rates on loans.
Finally, a strong credit score may get you attractive pre-approved loan offers and even give you more leverage to negotiate better terms with lenders.
There are a number of benefits of credit cards, but access to instant funds and the rewards program are some of the most attractive perks. You can enjoy offers and discounts on your credit card transactions.
It allows you to shop on EMI and increase your purchasing power, allowing you to afford things that may otherwise be out of your budget.
Credit cards offered by trusted banks and NBFCs have many exciting features. One of the most crucial credit card features is that anyone can get a credit card if they meet the required eligibility criteria.
You can also get discounts and offers. Apart from these features, credit cards can help you boost your credit score with timely repayments.
Credit cards have an interest-free period, during which you are not charged any interest on the outstanding amount. And finally, you can also use a credit card to withdraw cash from ATMs.