Overview
Credit cards are often mistaken for any financial troubles, and if used recklessly, they can often lead to debt traps. They, however, can be an effective tool for handling budgets, saving money, and building a high credit emi score when used responsibly.
The following are five aspects in which credit cards can be useful to you:
● Aids in the Improvement of your Credit EMI Score
Since using credit cards is equivalent to taking out loans, credit bureaus include all of your credit card transactions when determining your credit score. Although interest is charged on loans, there is no interest charged on credit cards as long as the whole bill is paid by the due date. As a result, it’s one of the most practical and cost-effective ways to improve your credit score. A credit score of 750 or higher is considered “excellent,” and people with such a score have a better chance of getting loans and credit cards with lower interest rates and fees.
- Various Card Rewards Help you Save Money.
Cardholders can receive discounts, loyalty points, cash back, coupons, and other perks from credit card issuers. Many card issuers also have lifestyle benefits such as complimentary club memberships, free lounge access, and so on. Since these benefits differ between cards provided by the same company, make the most of them by selecting the credit card(s) that best suit your spending habits and lifestyle.
For example, those who spend a significant amount on travel-related expenses such as air fares, hotel stays, and so on may choose travel credit cards, while those who spend a significant amount on fuel for commuting may choose fuel credit cards. Often choose a credit card with a monetary equivalent of likely credit card rewards that far outweighs the annual/joining charge.
● Through the interest-free cycle, it aids in Cash Flow Management
The interest-free cycle of a credit card refers to the time between when a credit card purchase occurs and when it is supposed to be repaid. Depending on the dates of credit card purchases, this period will last anywhere from 18 to 55 days. The availability of an interest-free duration serves as a form of zero-cost financing for credit card purchases before the due date. Try to time your big ticket credit card purchases in the first days of your credit card’s payment cycle to get the most out of your interest-free era.
Failure to repay credit card loans by the due date will result in significant interest costs in the form of finance charges ranging from 30-49 percent from the date of the transaction to the final repayment. In addition, if a credit card bill is not paid in full, the interest-free period on new card purchases will be revoked before the bill is paid in full. It’s worth noting that the interest-free duration does not apply to ATM withdrawals made with credit cards.
● Allows you to Pay for things with Credit EMI
Credit card users will normally turn their whole or a portion of their credit card bill into EMIs. Such conversions have a much lower interest rate than finance costs, and the term can be anywhere from 6 to 60 months. As a result, this choice is particularly beneficial to those who have limited repayment ability.
Many credit card companies often form partnerships with suppliers, service providers, and retailers to sell EMIs at reduced or no cost on their products or services. Some merchant partnerships also offer credit card holders extra discounts and cash back when they use the no-interest EMI option on certain services and goods.
● Instant Credit Disbursement in the form of a Pre-Approved Credit Card Loan
Credit card issuers offer pre-approved credit card loans to select cardholders with a strong repayment history and credit profile. Although most credit card loans are approved based on the available credit limit, some credit card issuers also offer an option where the loan is approved regardless of the credit limit.
Because of the pre-approval nature of this loan option and the lack of paperwork requirements, the loan amount is normally disbursed the same day as the application is submitted. As a result, it is one of the most effective methods for coping with financial crises and other financial shortfalls.
Applying For A Credit Card Using Finserv MARKETS App
Finserv MARKETS is a financial marketplace where you can find a variety of credit cards, as well as their features, rewards, fee information, and current deals, all in one location. You can select from a list of credit cards from Axis Bank, State Bank of India, and RBL Bank, all of which offer a diverse range of benefits.
- Visit the official Finserv MARKETS mobile app.
- Fill in your contact information as well as other personal information.
- Compare the features of the best credit cards to apply for from different banks.
- Choose the right credit card for you based on your spending habits.
- After filling out your new or first-time credit card application form, you will receive immediate, simple online credit approval.
Wrapping Up
Credit cards can be effective tools for financial success. However, it’s important to look at the larger picture and develop behaviours that will help you make better financial decisions and improve your financial health. It would be difficult to follow thorough adages like “never withdraw more than 4% a year to ensure your retirement lasts” or “save 20 times your gross income for a secure retirement” if you don’t have good overall habits.
SBI Credit Cards, RBL Credit Cards, Axis Credit Cards, and Citibank Credit Cards are among the portfolios offered by Finserv MARKETS app. You can also learn more about credit card benefits for students by visiting the website.
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