Are you a salaried individual and still relying on your salaried account for your expenses? Don’t you think you need a reliable financial tool that can cover your urgent financial needs?
It is where the credit card offers so many amazing benefits!
Right from paying utility bills to flight tickets to hotel bookings and beyond, a credit card provides the ease of using it even when you don’t have money in savings account.
Yes, credit cards are no longer considered a luxury in India. Anyone can face an urgent situation where you to avail either a personal loan or borrow from relatives.
However, the application time for a personal loan along with borrowing from friends and relatives may take time. Hence, you may not manage your needs immediately.
It is where the credit card offers the convenience of using it up to your assigned limit and pay after 40-50 days. What’s more, you also get to spread big-ticket expenses into EMIs and pay for them over a tenor.
Also, paying for your expenses also let you pocket reward points that you can redeem later for discounts on payments. If you want to know what benefits that a credit card offers, then you should continue reading and explore more.
Vital benefits that a credit card offers
Up to 50 days interest-free credit period
Can anyone give you money for 50 days which you can payback later with absolutely no interest? It is possible when you use a credit card! For a transaction that you make today, you can pay the bill after 50 days’ grace period, if it’s the start date of your billing cycle. It can let you relax and manage your expenses better in case of making big purchases. You can earn some interest on the money in your savings account while you wait for making the credit card bill payment.
Enjoy cash back, reward points and more
Most of the credit card companies let you enjoy some cash back or rewards while making a purchase. The numbers may go up during the weekends. As a result, you can save anywhere between 0.25%-3.3% on all your expenses. It means saving up to Rs.3.30 on each Rs.100 spent. It may seem less but think about the large purchase – if you are spending Rs.1 lakh, you are saving Rs.3,300. Isn’t it cool? You can also earn air miles and redeem it for a free air ticket across the globe. It means free vacation tickets, yes should not you need one? What’s more, credit cards may also let you enjoy free access to airports lounge while waiting to board a flight.
A leading NBFC such as Bajaj Finserv offers Bajaj Finserv RBL Bank SuperCard that offers 20,000 reward points as a welcome bonus on joining. It means paying a reduced amount on upcoming transactions leading to huge savings.
Emergency personal loan on credit cards
A credit card offers you an urgent personal loan on its unutilized limit for a short time at a lower interest than other transactions. You can simply apply for it as it’s a pre-approved facility which will be disbursed to you instantly. Credit card users are not supposed to provide any documentation as it’s a loan against your card. You can even pay the availed loan in EMIs without letting it hamper your monthly outlays.
You can enhance your CIBIL Score
If you are a consistent credit card bill payer and don’t default on the due date, each timely payment will improve your repayment history. As a result, you will also be able to increase your Credit Score. When you have a robust CIBIL Score, you would even get future loan approvals at lower rates to help you pay reduced EMIs.
It is pretty clear what benefits the credit card offers and how it could be a life-changing decision to get one.
Timely bill payments, using it only during a need, and not going greedy with the assigned limit not to go overboard will you handle it with elan.
If you are ready, some lenders such as Bajaj Finserv offers incredible pre-approved offers on credit cards, personal loans, home loans, and business loans and beyond.
Going for such offers will enable you to ease off the complications of applying for financial services and make approvals and disbursements faster.