A credit card is one of the most convenient options available to make purchases on credit today. However, unlike loans, this “debt” doesn’t come attached with any interest if you pay it off within the due date. If you fail to do so, then you may be subject to a high rate of interest.
Companies generally provide cardholders with up to 50 days of credit; thus, you get ample time to repay without inviting any additional interest. The primary objective of cardholders is not just to purchase goods on credit. Credit cards come with additional features that deliver attractive benefits with each transaction.
Here are 8 reasons why applying for a credit card is a good option:
- Reward points
With each transaction, you will earn rewards points that you can redeem to purchase stuff for free. Companies offer specialised credit cards that offer high reward points on particular purchases.
For example, airline credit cards cater to frequent flyers who can earn reward points with every air ticket purchased. They can redeem these points to buy air tickets. Further, these credit cards can also provide complimentary airport lounge access, business class upgrade, concierge service, and others.
Similarly, with a fuel credit card, one can earn waivers on fuel surcharge and also a certain amount of free fuel per year.
A majority of the credit cards offer reward points with every online and offline purchase. Some also offer cashbacks with specific transactions. You can also earn dining vouchers and movie tickets with them.
- Joining bonus
Some of the renowned companies offer bonus and reward points as a welcome gift when you opt for a card. Few companies may require you to pay nominal joining fees to avail these bonus points.
- Improving credit score/credit history
For availing a loan with affordable interest rates, you will require a good credit score/credit history. The most favourable credit score that banks and NBFCs look for in a customer is 750. You may even get a loan with a low credit score but the interest rates will be high.
So, to improve the credit score, you can opt for a credit card. Managing it responsibly and paying the dues in time will reflect positively in your credit score.
- Global shopping
From Paris to Philadelphia, you can use credit cards globally. However, companies will charge an additional foreign transaction fee with every such purchase.
- Buyer protection
Compared to debit cards, credit cards come with stronger buyer protection. You will be protected from all fraudulent or unsuccessful transaction. Known as chargebacks, the company will reimburse any amount lost by you, in case of discrepancies.
- EMI financing
One of the widely preferred features of credit cards is EMI product financing. Some companies also offer No Cost EMI option through which you won’t be charged any interest on the EMIs.
- Emergency loans
You can also get an emergency loan with some credit cards. These loans can also be interest-free up to a specific period.
Several companies offer insurance coverage on their credit cards against card theft, accidental loss, accidents, healthcare, and more.
These are some of the reasons why a credit card makes you a smarter consumer. If you are looking to avail one, consider the Bajaj Finserv RBL Bank SuperCard. This credit card includes the power of 4 cards and brings several industry-first features like:
- Interest-free loan up to 90 days.
- Interest-free ATM cash withdrawal for up to 50 days.
- Accelerated reward points and annual savings of up to Rs.55,700.
- Security features like zero-fraud liability cover and in-hand security.