When it comes to juggling your last-minute money, credit cards are a reliable option. They are a financial instrument available from both banking and non-banking institutions that allows you to borrow funds up to a pre-determined limit to help you manage your finances. Many see it as a liability or a way to get loaded with debts. However, the benefits can outweigh the disadvantages when used with responsibility. They provide advantages, security, and convenience.
Why do I need a Credit Card?
Credit cards are an important tool to help maintain a good credit score. When used with responsibility, can be helpful to your financial well-being. One can gain money simply by using their cards! Additionally, there are multiple perks offered by multiple credit cards companies that can enable one to save on their purchases!
After the pandemic, many financial institutions have made the process easier by providing an online application with credit card apps.
Here are a few reasons to help you make the most out of your credit card.
- Helps maintain your credit score
- Earn & redeem your Reward Points
- Win Cashback
- Enjoy complimentary services
- Convenient repayment window
- Easy EMI conversions
- Get loans against your credit limit
Helps Maintain your Credit score
If you want to borrow money, you’ll need a credit score, which is based on your financial activity history. Your credit card background contributes to these ratings. On several levels, using your credit card wisely is beneficial to your financial health. To begin, disciplined credit use, which involves spending less than 40% of your credit limit and paying your bills on time and in full, will help you improve your credit score.
Earn & Redeem your Reward Points
Many financial institutions also offer Rewards Points to their users for spends on the credit card. Customers should choose cards with point or reward structures that suit their lifestyle and spending habits to get the most out of these benefits. You can see the list of benefits offered on the credit card app of the lender. Also can check the expiration of the rewards on the mobile app. And You can use these reward points to get discounts on your purchases and thus save money.
Cashback is the amount of money back you can win on purchases with your credit card. Cash rewards can be a small sum or as much as ten per cent of your purchase. The money won is transferred directly to the savings or current account linked to your credit card. Cashback credit cards offer you the chance to make money from your purchases, by giving you a percentage back.
Enjoy Complimentary Services
An online credit card can come in handy when you are traveling. Many lending companies have a partnership with certain flight services that offer complimentary lounge services when traveling. And the offer does not limit to There are other offers run by lending institutions that can other travel perks.
Convenient Repayment Window
Most online credit card companies offer a no-interest loan for up to 30 days. Different to debit cards, they do not immediately deduct the amount from your savings account. It comes with a grace window of up to a month for easy repayment. This can prove to be beneficial when dealing with financial inadequacies and dealing with emergencies.
Easy EMI Conversions
You can easily convert your big purchases into easy EMIs which can be repaid over a flexible range of selected tenure. Also, most financial institutions offer an option of no-cost EMI, so you do not end up paying extra or surcharge on your purchases. This is done to aid in the repayment of your big-ticket purchases.
Get Loans against your Credit Limit
Companies like Bajaj Finserv offer an instant emergency advance with your credit card. You can get a Personal Loan on your cash limit with a nominal interest rate of up to 1.16% without processing fee charges with your Bajaj Finserv co-brand credit card. You can check for other offers by the company on the credit card apply app.
Apart from the benefits listed above, a credit card has a universal acceptance which can come quite handy when travelling abroad. You can book your stay and rental cars easily with your card. However, the same is not the case with a debit card. Also, many companies offer consumer protection on their card to protect against accidental damages and theft. There are many companies offering sign-on bonuses on an online application that can be redeemed later for your purchases. It can come in handy when paying for your monthly expenses, grocery, bills and more.
So, to conclude, there when used sporadically and judiciously, a credit card can prove to be an asset than a liability. You can easily apply online for one with a credit card apply app.