In today’s world, credit cards have become an indispensable part of our financial lives. They offer numerous benefits and can help individuals make secure, convenient, and cashless transactions. Let’s take a closer look at the benefits of using a credit card, as well as some of the specific features of popular Indian credit cards, like the Bajaj Finance RBL Bank SuperCard and the Bajaj Finance DBS Bank Credit Card.
1. Convenience and security
One of the most significant benefits of using a credit card is the convenience and security it offers. Instead of carrying cash, you can use your credit card to make purchases online and offline at millions of merchants worldwide. Moreover, credit cards are equipped with secure technology, including encryption and chip-based security, which makes them more secure than cash.
2. Cashback and rewards
Another significant benefit of using a credit card is that you can earn cashback and rewards points on your transactions. Most credit cards offer a rewards program that gives you reward points for making purchases using your credit card. These points can then be redeemed for cashback, discounts, or gift vouchers.
For instance, the Bajaj Finance RBL Bank SuperCard offers customers reward points on every transaction, which can be redeemed for travel, shopping, dining, or entertainment vouchers. Furthermore, the card also provides customers with cashback on grocery shopping and fuel purchases.
Similarly, the Bajaj Finance DBS Bank Credit Card offers customers reward points on spending on all transactions made using the card. These reward points can be redeemed for air miles, travel vouchers, or cashback.
3. Credit Score Improvement
Using a credit card in a responsible manner can also help to improve your credit score. A credit score is a rating given by credit rating agencies based on your credit history. It is essential as it determines your eligibility for various financial products, loans, and credit cards.
Using a credit card responsibly, by making timely payments and not exceeding your credit card limit, can help you improve your credit score over time. This, in turn, can improve your chances of getting approved for credit in the future.
4. Interest-Free Credit
A credit card also provides you with an interest-free credit period. This means that you can make purchases on your credit card and make the payment at a later date without any interest charges. However, it is important to make the payment in full and on time to avoid any interest charges.
5. EMI Facility
Another benefit of using a credit card is the EMI facility. EMI stands for Equated Monthly Installments, which allows you to convert high-value transactions into easy monthly installments. This facility is especially helpful if you need to make a large purchase but cannot afford to pay the full amount upfront.
Both the Bajaj Finserv RBL SuperCard and the Bajaj Finserv DBS Credit Card offer customers EMI facilities on purchases above a certain amount.
Besides reward points and cashback, credit cards also offer discounts on various transactions. For instance, many credit cards offer discounts on dining, shopping, travel, and entertainment. These discounts can help you save money on things you would purchase anyway.
7. Annual Fees
Most credit card charges an annual fee, which varies depending on the type of card you choose. However, many credit cards waive the annual fee for the first year and offer subsequent discounts to loyal customers.
How to Apply for a New Credit Card
If you’re interested in applying for a new credit card, here are the steps to follow:
- Check your credit score: As mentioned earlier, your credit score determines your eligibility for credit cards. Check your score before you apply for credit card online.
- Compare different cards: Research different credit cards to find the one that best suits your needs. Consider the benefits, rewards, fees, and interest rates before choosing a card.
- Check your eligibility: Check the eligibility criteria for the credit card you want to apply for.
- Gather the necessary documents: You will need to provide documents like identity proof, address proof, and income proof.
- Fill in the application form: You can apply for a credit card online or at your bank’s branch. Fill in the application form and provide the necessary documents.
- Wait for approval: Once you submit your application, you will need to wait for approval. It may take a few days for your application to be reviewed.
In conclusion, credit cards offer numerous benefits, including convenience, security, cashback, rewards, and interest-free credit. Moreover, both the Bajaj Finance RBL Bank SuperCard and the Bajaj Finance DBS Bank Credit Card offer customers numerous features and benefits that can help them save money and manage their finances effectively. However, remember to use your credit card responsibly to avoid any interest charges and protect your credit score.