Credit card over the past few years has become increasingly popular owing to the benefits it offers as a financial instrument. In case you are contemplating to avail a credit card of your choice but do not know how to opt for one, continue reading to get a detailed aspect of credit cards and become aware of the various benefits of using a card.
What are the advantages of using a credit card?
Permits you to maintain a bank balance
One of the major advantages of using a card is it permits you to defer your bank payments to a specified date and thus enables you to maintain a bank balance. In the case of any financial exigencies, you will require hard cash or high liquidity, which may strengthen your financial position. So, whether you are holding an Axis Bank rewards credit card, a card from Axis bank credit card issuer or a DigiSmart card, a card of Standard Chartered Bank issuer or any other card, all of them allow you to maintain a good bank balance and high liquidity if you use your credit card for all your daily expenses.
You can purchase costly items such as furniture or electronic goods
The next most liked feature about credit cards is they permit you to buy a high-value product and services by opting for the EMI option either at no cost or standard. This assists you afford goods without the requirement to wait until you save the whole amount even assisting you maintain high liquidity.
You can get exciting offers, discounts, and rewards
All Axis Bank credit cards offer rewards to their users on every spend. Such rewards may be in the form of EMI offers, cash back, discounts, reward points, etc. Select a credit card that matches your specific requirements, or you can opt for even an all-in-one card such as the OneCard that rewards you irrespective of shopping categories.
Form your score simply
When you use the credit card and make payment of your outstanding dues in full and on time, you begin forming your score. In the case, you are not able to pay in totality at times, you can pay the minimum due to maintain a score. However, you may be charged the interest on the outstanding amount.
Holding a good score makes you qualify for higher loan proceeds with minimal interest rates and even credit cards at higher limits.
You can plan out your expenditures better
When you use a credit card, you may not just get a notification on every single transaction but even be able to know your overall spending in a specific month. This assists you keep complete track of your expenditures and help at managing them in a better way unlike when you spend through cash. Virtually integrated cards such as OneCard usually go a step ahead and offer sophisticated spending trackers.
You have the backup for exigencies
Credit cards tend to serve as an excellent backup in the case of any immediate need such as bill repayment, or medical expenses in times of crisis. This goes without saying a credit card must not be the only backup, but it is a good backup in times of urgency.
You can conduct foreign transactions simply
Whether you are traversing outside India or subscribing to foreign services, credit cards come across as a convenient mode of payment. Many international sites do not permit you to make payments through wallets or debit cards.
You get an added security layer while using debit cards or cash
Credit cards provide an additional security layer through distinct means involving fraud protection, purchase limits, chargeback facilities and insurance. The levels as well as protection types often differ across lenders. However, owing to security layers, credit cards come across as a safer mode as compared to cash or debit cards.
When is the best time to place an application for a credit card?
While lenders factor in distinct parameters like credit score, income, age, etc. before approving your credit card, the decision of whether to avail a credit card must be yours. Listed here are some of the essential scenarios when placing a credit card application that may sense for you.
On your first job
Many financial institutions provide credit cards to employees or staff who have a salary bank account with them. This is a prudent idea to consider an offer and begin forming your score gradually. A strong score also helps you avail a loan as per your requirement like an auto loan, home loan, etc. A strong score even allows you to qualify for a lower rate of interest on loans. However, it’s necessary to take the decision well as without financial discipline your finances may be in a mess and your chances of availing a loan of your choice may even be lower.
Before you make the high-value transaction for your family as well as yourself
Whether you are watching the latest desktop in the market or looking to avail a much-awaited foreign trip, availing a credit card can assist you meet your dreams in a planned way. In place of exhausting your whole savings, you can make the repayment over some time to reduce your burden. Using a card in place of cash on foreign vacations even lowers the theft risk.
In the case you are making periodic purchases in a specific category
In the case you are spending periodically in a specific category like movie tickets, groceries, dining, etc., it makes complete sense to avail a credit card that provides full rewards and cash-back offers on the specific category where you spend the most.
In the case you are looking to ameliorate your score
In the case, you have no score, then you can avail a credit card to form your score and credit profile. For any reason, in the case, your score is impacted, or you want to improve your credit score, then you can avail a new credit card to recover your credit score.
