Following the announcement of the Digital India initiative, the use of innovative financial instruments such as credit cards is growing in popularity. As per recent statistics, the credit card industry in India is expected to grow at a CAGR of 25% and above between 2020 and 2025.
Credit cards allow individuals to convert their purchases into monthly EMIs, which enable them to finance substantial expenses. Hence, aside from increasing the purchasing power of individuals, they can bail individuals during a financial crisis. There are various types of credit cards that come with different features. However, the best credit cards provide great discounts, lucrative offers, cashback, rewards, and more.
What to consider when choosing a credit card?
Due to the availability of different types of credit cards, choosing the right one can be a challenge for most individuals. However, here are some tips that can help them choose the right credit card:
A credit card issuer may charge different types of fees such as joining fees, annual fees, redemption fees, and more. However, some credit card issuers waive off certain charges like the joining fees. Hence, before availing of a credit card, individuals must enquire about the various charges that are associated with the credit card.
Joining bonuses and rewards
The best credit cards, mainly in the premium segment, comes with a wide range of benefits such as joining bonuses, additional discounts, cashback offers, and more. Hence, before availing of a credit card, individuals must be aware of all the benefits that are provided by the credit card issuer.
A credit limit is a maximum amount that an individual can spend using their credit cards without having to pay any penalty. Individuals who exceed the credit limit sanctioned by the credit card provider have to pay over-limit fees. Hence it’s imperative for credit card users to know how to read a credit card statement correctly to avoid paying such charges.
An individual’s credit score is a reflection of his or her creditworthiness. It is one of the most important factors that determine whether one is eligible for a credit card. Usually, individuals having a credit score of 750 or above have a high chance of getting their credit cards approved. Hence before applying for a credit card, one should check their credit score to see if they fulfill the eligibility criteria.
Individuals have to pay additional charges if they fail to pay their EMIs or make part payment of their outstanding balance by the due date. The credit card issuer imposes such charges from the date of transaction till the repayment date of the outstanding amount.
It’s essential for credit card users to learn how to use their credit cards wisely so that they can avoid such late fees and additional charges. Moreover, not paying the bills in time can have a significant impact on the credit score of an individual.
Financing the expenses with a credit card associated with high interests can make repayments a challenge for most individuals. To eliminate this issue, one can opt for a Bajaj Finserv RBL Bank SuperCard. This modern financial instrument is widely considered as one of the best credit cards that facilitates easy repayments.
Apply for a Bajaj card online and avail the benefits associated with it.
Moreover, financial institutions such as Bajaj Finserv provide various pre-approved offers on a wide range of products such as credit cards and personal loans. Individuals can avail of these offers to meet various financial requirements. Check your pre-approved offers by entering a few details.
Choosing one of the best credit cards can help individuals during a financial crisis and moreover make their repayments easier. However, before opting for a credit card, one must make sure to analyze the parameters and then make a decision accordingly.