Today, credit cards have become one of the most popular and essential financial tools in India. People regularly use their credit cards to pay for their daily expenses. Transaction through credit cards increased by 27% between January 2017 and January 2018, topping at almost Rs. 41,400 Crore.
Cardholders enjoy various features and benefits when they pay using their credit cards. Let’s take a look at the importance of having the best credit cards.
It can help improve your credit score – A credit score is a numerical representation of your financial history. It ranges from 300 to 900, and an applicant is considered creditworthy if he or she has a credit score of 750 or above. Credit bureaus like CIBIL determine your credit score after reviewing your repayment habits, past credits, etc. Whenever you apply for a loan or some types of credit cards, the financial institution checks your CIBIL score.
You can significantly improve your score if you maintain timely repayments of your credit cards dues. It strengthens your creditworthiness since you will be regarded as a responsible borrower.
It gives you more time to pay the dues – Credit cards allow you to purchase various products on credit whenever there’s inadequate cash in hand. You borrow the money from the lender and repay within a due date.
A best credit card also offers you an interest-free grace period to pay off the bill. You can get almost a 50 days’ time to pay the due amount without any interest.
You can enjoy special offers and discounts – best credit cards come with attractive offers and discounts along with a substantial amount of reward points for the money spent. You can enjoy cashback offers by using the card to shop, travel, pay for daily expenses like grocery and utility, etc. Gift vouchers, complimentary movie tickets and exciting discounts on certain products are also some features of a best credit card.
Loyalty programs like reward points is another attractive feature of best credit cards. You earn a certain number of points whenever you use the card to purchase something online and offline. Redeem these points to enjoy discounts, offers, coupons, etc. and make your future purchases affordable.
Complimentary services and bonuses – Various types of credit cards offer courtesy services and bonuses like complimentary airport lounge access, fuel surcharge waiver, welcome gifts, milestone gifts, etc. These add-ons can prove beneficial and save a lot of money for someone who uses their card extensively.
Generally, a best credit card like Bajaj Finserv RBL Bank SuperCard merges all these features into one. You can enjoy fuel surcharge waiver, welcome gift of up to 20,000 reward points, huge milestone bonuses, and many more with their SuperCards.
Robust security – Credit cards are much safer than debit cards as they don’t transact from your savings account immediately. In case of a fraudulent transaction, you can notify the lender, and they will take necessary action to ensure you don’t face any inconvenience. Most financial institutions offer added layers of security like ‘in-hand security’ and ‘zero-fraud liability cover’ to eliminate cybercrime threats. Such features allow better control over a credit card. You can also check your credit cards’ statement periodically for any fraudulent transactions.
You can get a loan in an emergency – In case of an emergency, you can avail a personal loan against your credit card’s unused balance where you convert the available limit as an advance. This can help you meet an unforeseen financial situation where you need immediate cash.
Lenders like Bajaj Finserv even provide a 90-days’ interest-free period for a loan on credit cards. The due amount can be repaid in 3 easy EMIs without straining your personal budget.
Bajaj Finserv also provides pre-approved offers on credit cards, personal loans, home loans, business loans, and a range of other financial products. Such offers help you save time by simplifying the process of availing finances. You only have to provide some necessary details online to check your pre-approved offer.
A credit card can significantly help you improve your financial condition as it protects you from a fiscal deficit, provides an alternate source of money, and brings a host of added features and benefits for you to enjoy. Proper utilisation can even improve your credit score, making it easier for you to apply for an advance in the future. It is a great financial tool available for everyone.