6 Reasons Why to Opt for a Credit Card?

Credit cards are one of the fastest growing financial tools in the Indian economy. Top card issuing companies continue to add new features with these cards to provide users with multiple attractive features and offers.

Credit cards allow users to make transactions and purchases against a predetermined line of credit. It is a tool which gives you access to specific loan amount to be used for online transactions or offline swipes at PoS machines or ATMs. There are certain intrinsic benefits of these cards which every new user should know about and utilise completely.

6 Reasons To Opt For A Credit Card -

    1. Reward Points - You get to earn bonuses in the form of reward points when you use the card to make specific transactions. These reward points can be redeemed to avail discounts on your next purchase from your credit card. The bonus rate may vary between online or offline transactions. Reward point programs are aimed to attract new users like you. These points can be redeemed as cashbacks, discounts, vouchers and even air miles in specific cards. You should have a proper idea about these points before you choose the card.

    2. Grace Period - You get up to 30 days of the billing period and an additional grace period of 20 days within which you are required to make your due payment. You can avoid incurring any interest on the credit amount utilised if you repay it within the cumulative time frame.

    Suppose your bill generation date is 18th of every month, assume the month of July. Your payment due date will be 20 days from the bill generation day, that is the 7th of the next month, which is August. As per your credit card billing cycle, your next bill will be generated on 18th August. Hence, for any transactions you make after 18th July, you get up to 30 days as per your billing cycle (18th August) and an additional 20 days, that is the payment due date (7th September), to make your payment without incurring interest on it.

    If you fail to pay your bill within the mentioned period, interest rate and other fees will be imposed, thus increasing your bill amount.

    3. ATM Withdrawal - Similar to a debit card, you can also use your credit card to withdraw cash from an ATM. For such withdrawals, you will have to bear a minimal transaction fee. Many financial institutions and NBFCs provide credit cards with ATM withdrawal facility at against minimum transaction fees and zero interest charges.

    4. Tracking Facility - You can easily track your expenses, due date, payment amount and other essential information online via a mobile credit card app. Top credit card companies allow you manage your card on-the-go anytime, anywhere.

    5. Balance Transfer Facility - You can use this facility to transfer your outstanding amount from one credit card to another. This feature helps you avoid accumulating debt at high interest, in turn, reducing the burden on your budget. You can opt for the online credit card balance transfer facility to make the process hassle-free.

    6. Application Process - You can easily refer to a credit card app to make an application for the card. For such request, you will have to fill a form by providing some necessary personal, contact and financial details. After you fill the form, you will be asked to provide some documents such as KYC documents, address proof, etc. Your lender will review your CIBIL score depending on which the credit card limit will be set and approvals will be made accordingly.

Several financial institutions and NBFCs provide pre-approved offers to make the application process fast and hassle-free. BajajFinserv is one such NBFC that provides pre-approved offers which are available on multiple financial products such as credit cards as well as on secured advances like home loans and unsecured credits such as business loans and personal loans.

To enhance your credit card usage experience, Bajaj Finserv has also launched the user-friendly Bajaj Finserv App which allows users to easily access and manage their credit card account or other financial products and services.

Refer to top lenders to enjoy a sign-up bonus reward points on application for the card that you can use to gain discounts and offers on purchases. Also, keep an eye out for cards with robust in-built security features for protection against fraudulent activities.
6 Reasons Why to Opt for a Credit Card? 6 Reasons Why to Opt for a Credit Card? Reviewed by Bella Jonson on August 05, 2019 Rating: 5

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