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Importance and benefits of credit cards: Here is how to get one

What a credit card essentially does is, it helps you keep your financial goals on track. Here's everything you need to know about credit cards and how and why you should have one...

Image Credits: Finserv MARKETS

Credit cards have remained an undisputed alternative to cash for several years now. All your spending needs, online or offline, can be met through credit cards. Moreover, if you are falling short of funds and have to meet a financial emergency, a credit card can come in handy. Rather than borrowing from friends, relatives and neighbours, it’s better to be self-reliant and use a credit card to tide over the crisis. No wonder, credit cards are considered to be one’s best friend when one runs out of cash.

Not just during financial exigency, a credit card can be used for any lifestyle activity that one pursues. From dining to watching movies to purchasing smartphones and DSLR cameras – a credit card is a one-stop solution for all. After all, carrying cash and keeping your wallet loaded with currency notes is no more a fashion statement!

The credit limit on credit cards is pre-set based on certain factors, including one’s income level. In the current digital age, you can check your eligibility and apply for credit card online in just a few clicks.

What a credit card essentially does is helps you keep your financial goals on track. In its absence, you may have to dip into your emergency funds or existing investments earmarked for goals such as your children’s education or your retirement.

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Moreover, proper usage of a credit card, such as by paying the card dues on time and using it optimally, helps one create a good credit profile over time. A high credit score, achieved by timely credit card payment, helps in procuring high-value loans like home loans at a competitive interest rate that can help create valuable assets.

The advantages of owning a credit card don’t stop here. Certain core benefits of a credit card perfectly blend with the shopping and lifestyle needs for most of us.

These include:

Interest-free loan: On using the credit card for any purchase or service, you effectively get an interest-free period before the amount utilized has to be paid back with interest. In most cases, the interest-free period lasts for 45-days. You can plan some of your expenses to take the maximum advantage of the interest-free period in credit cards.

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EMI purchase: In case you have to purchase white goods for your household but do not have adequate funds to pay upfront, you can turn to your credit card for help. The big-ticket purchase can be converted into EMIs, thus providing a convenient means of paying for your new washing machine, LED TV, microwave, refrigerator, etc.

Pre- approved loans: If you want to take your family on vacation or require funds for any other reason, you can avail for a loan against your credit card. Without documentation and much fuss, the funds move into your bank account after you apply for such loans.

Cashbacks: Who would not like to get a portion of one’s spending, back into their pocket? Your monthly expenditure on a credit card can help you earn a sizeable amount as cashback. On swiping a credit card at a merchant shop or using it online, there are cashback offers on most transactions that you make.

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Reward Points: This undoubtedly is one of the most attractive features for many credit cardholders. You get reward points on using a credit card which can be redeemed for buying goods, services or even vouchers. With smart usage of credit cards, you can essentially buy goods such as a pair of shoes, leather bags, a new stereo system and much more without actually paying for it. Yes, it’s possible by redeeming the reward points earned on your usual shopping done through your credit card. You can even redeem the earned reward points to avail discounts, gift vouchers, movie tickets, fuel surcharge waiver etc.

Cash withdrawal facility: Credit cards are not just meant for shopping; they also extend as a financial helpline. You can use a credit card to make cash withdrawals from an ATM at the time of an urgent need.

Access to lounges: For someone who is a frequent traveller, access to airport lounges comes as a complementary feature with credit cards. Lounge access provides a time to relax and rest in a comfortable environment, have snacks and do much more.

To bring out the best and make the credit card work to your advantage, you should choose a card that goes with your lifestyle and spending habits. Finserv MARKETS, a financial services marketplace, has some of the top credit cards in-store to suit every need of individuals.

To provide an unparalleled suite of credit cards and unmatchable services, Finserv MARKETS has partnered with some of the leading banks such as Axis Bank, SBI and RBL Bank. There are credit cards for beginners, as well as for the premium category that needs special features and services.

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‘What’s more? Now, you can also apply for a credit card using the Finserv MARKETS App, which offers a host of benefits and features such as exclusive app-only rewards, 24×7 chatbot assistance, a wide variety of products and lastly, a name that you can trust! Take a tour of the Finserv MARKETS App and get spoilt for choices!

 

First published on: 05-11-2020 at 02:14:49 pm
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