Credit cards can make your life easier as a consumer as it allows the purchase of products within a pre-specified line of credit. Therefore, even if you do not have the necessary funds to make the transactions or purchases, credit cards can help you pay for the same immediately. Apply for credit cards and meet your financial necessities with ease.
How do credit cards function?
Unlike debit cards, where you can only access the funds available in your bank account, credit cards allow consumers to utilise a limited amount of credit offered by the provider to fund their expenses. Therefore, credit card usage is possible even when you have no money in your savings account.
However, when using a credit card, you must understand that financial institutions charge interest on the money you spend, if not repaid within the due date. Similar to a loan repayment, you need to pay your credit card dues to the lender as well.
After you apply for a credit card and start using it, you will receive monthly bills for the same. An individual who wants to use a credit card wisely must clear the total outstanding dues within the stipulated time. Doing so will ensure that you avoid paying late payment penalties.
Benefits of using a credit card
Here are some advantages of owning and using a credit card apart from its ‘buy now pay later’ feature.
- Breaking down bigger expenses into EMIs
Credit cards allow you to make high-value purchases without paying the whole sum of funds upfront. You can utilise the available credit limit on the card to make such purchases or transactions. Further, such cards allow you to pay for such purchases and break down the price into easy to pay EMIs over a range of months, as provided by the lender.
For instance, buying a laptop involves considerable expenses. If you use a credit card for the purchase, you can effectively divide the entire cost of the laptop into smaller, more manageable monthly payments. The ability to turn any considerable expense into EMIs is one of the most attractive features why you should apply for a credit card.
- Reward points
The best cards available in India, such as the Bajaj Finserv RBL Bank SuperCard, awards reward points equivalent to as much as 2.5% of the total sum of credit utilised with the card. These are redeemable points, which can help you avail products and services at discounted prices. Therefore, using your card can essentially lead to savings in the future. Before opting for a card, inquire about the reward points with your credit card company to know more.
- A safer option than debit cards
Debit cards are linked to your bank account, which means that in the event of fraud, you stand to lose the funds utilised in the transaction. However, a breach of security on your credit card does not pose a direct and immediate threat to your money.
You should inform your credit card issuer about the fraud immediately though so that they can block the card in question. Some of the best credit cards in India provide additional security in the form of a password during online transactions.
- Additional savings through cash back
Many individuals opt to use credit cards for payment of monthly utility bills, such as electricity and internet bills. Financing companies in India offer attractive cash backs on credit card bill payments. Furthermore, when opting for credit card purchases online, many e-commerce sites too offer lucrative cash back opportunities.
Bajaj Finserv offers the Bajaj Finserv RBL Bank SuperCard in association with RBL Bank which comes with multiple exciting offers other than numerous industry-first benefits and features.
Bajaj Finserv also brings you pre-approved offers which make availing such financial tools and products quicker and easier. These offers are available on credit cards, business loans, personal loans, home loans, etc. You can check your pre-approved offer by providing your name and phone number.
Opt for the best credit cards in India to avail every feature and benefit mentioned here. Proper usage of these cards can reduce your financial burden and help you achieve your dreams.