Showing posts with label Credit limit. Show all posts
Showing posts with label Credit limit. Show all posts

Monday, March 1, 2021

10 Major Benefits of Using a Credit Card

A credit card is one of the most powerful financial tools that we have at our disposal and if used responsibly, it can provide many benefits in the long run. Today, we are going to look at top reasons why everyone should use a credit card for their expenditures

1. One-Time Bonuses

People with good credit scores can get their cards approved with added bonuses. You can avail of these bonuses by spending a certain amount in the first few months when your credit account is open. Other bonuses may include travel points, gift cards, and more.

2. Convert transactions into EMI

This is a great benefit that every credit card comes with. When you make a big purchase using your credit card, you don’t have to make full payment, you can easily convert that transaction into monthly installments, which gives you time to pay off the money over a period of time. This benefit allows you to fulfill your wishes without the burden of paying all the money at the same time.

3. Cash Back

The most significant benefit of using a credit card is cash-back. Whenever you use a credit card for making a purchase, you receive a percentage of total expenditure in the form of cashback. This allows you to save a lot of money in the long-run. 

If you are a platinum member, you might get cash-back offers up to 2% to 3%. So, before applying for a credit card, look at the list of partners that a financial institution is associated with.

4. Rewards Points

Another major benefit of using a credit card is the reward point system. The more you spend using your credit card, the more points you earn. These points can redeem to earn discounts, buy merchandise, groceries, and more. 

For example, if you get Citibank credit card, you can earn reward points when you spend money on fuel, restaurants, movies, and more. Contact your bank to learn more about the reward points.

5. Frequent-Flyer Miles

This point is for those who travel a lot. When you purchase your flight tickets using your credit card, you get flyer miles that can be used for either discounts or purchase tickets (if you have enough points). 

All major airlines have at least one bank that is partnered together and offer this benefit to their customers. So, make sure you check whether your credit card has this benefit or not.

6. Safety

Paying with your credit card is much safer than your debit card. When you use your debit card, the money is deducted from your account instantly. 

Similarly, if you lose your debit card, you are at major risk of losing your hard-earned money. But when you use a credit card, and you encounter any fraud, the bank will take it immediately. Plus, your money is also secured.

7. Grace Period

When you make a purchase using your debit card, your money is gone instantly. On the other hand, when you spend money using your credit card, your money remains in your account until your due date. 

This time between the end of the billing cycle and the due date is called the grace period. This allows you to repay your credit card while having the luxury of keeping your money in your account as well.

8. Insurance

Credit cards come with a number of customer protections that people are not aware not like insurance. Many banks offer insurance services to their customers who use their credit cards. This benefit is usually available to those who have a high credit limit.

9. Universal Acceptance

This is by far the main benefit of why everyone should have at least one credit card. All credit cards are accepted universally, this means if you are traveling, you can easily make payments in a foreign country using your credit card. 

You can rent a car, spend money on shopping, use to pay your hotel bills and more. You don’t have to worry about carrying the foreign currency with you all the time. Simply swipe your credit card and you are done.

10. Building Credit

A credit card helps you in building your credit score, which shows that you are responsible and can handle your finances. This is great for people who started working and looking to build their credit. When you spend money using your credit card and make timely and full payments, it impacts your credit score positively, which helps you in increasing your credit limit and enables you to apply for loans and more credit cards.

There are many other small benefits to why you should use a credit card, but these above-mentioned points are the main benefits that you get to enjoy when you use your credit card responsibly.

Wednesday, March 21, 2018

Ways to Get the Most from A Bajaj Finserv Credit Card

Bajaj Finserv, the popular non-banking financial company (NBFC), offers a range of credit cards in association with RBL bank. These Bajaj Finserv RBL Bank Supercards are packed with different rewards and benefits.

These Bajaj Finserv credit cards are unique, and can be used to meet all your purchases. From withdrawing cash to converting your credit limit into a loan, these cards are a rewarding way to pay for yourself. The low annual and joining fees also make them pretty affordable.

How to use Bajaj Credit Cards in a better way?

Despite having credit cards, many people do not use them optimally. People either end up in debt or use their cards too less, which doesn’t provide them all available benefits. You can avoid both using your credit card to build credit, and to save and earn money.

You can make the most out of your Bajaj Finserv Credit Cards in some of the following ways:

1. Choose your Rewards Carefully 

All Bajaj Finserv Supercards come with great rewards. So, you need to choose the card offering rewards according to your taste. For example, if you are a frequent movie goer, the Bajaj Finserv RBL Bank Platinum Choice FYF Supercard would be great for you, as it offers special discounts on movie tickets. 

Similarly, if you like going on road trips, the Bajaj Finserv RBL Bank Supercard offers a waiver of Rs. 200 per month on fuel surcharge across petrol pumps.

2. Ensure Lower Interest Rates and Costs

While all Bajaj Finserv credit cards boast of an affordable interest rate, only a few have the reduced and almost nil joining fee, like the Bajaj Finserv RBL Bank Platinum Choice FYF Supercard. In fact, with the Bajaj Finserv RBL Bank Platinum Plus Supercard, you even get a welcome gift of 4000 reward points.

3. Don’t Be in A Hurry To Get A Card

While choosing your Bajaj Finserv Supercard, don’t be in a hurry to pick one. In fact, do not purchase any credit cards on a spur-of-the-moment decision. Take some time to compare all the features, benefits and rewards from all the different Bajaj Finserv Supercards, and pick the one that suits you best.

4. Avail the Credit Limit to Loan Benefit

The Bajaj Finserv RBL Bank Supercards offer an opportunity to convert their credit limit into a loan once a year. With this, you can get instant cash for up to 90 days and repay it easily in 3 EMIs. You can avail this and get money for any timely monetary support that you may need.

5. Be Sure of The Safety Features

Being cautious about your credit card is the smart thing to do, especially since an unsafe credit card could put your bank account at risk. The Bajaj Finserv Supercards all have inbuilt safety features like ‘In-Hand’ security and ‘Zero-fraud liability cover’. Ensure that your Bajaj Finserv credit card has these features- or some similar others- for better safety.

If you keep the above tips in mind, while choosing your Bajaj FInserv credit card, you can make better use of it. Additionally, don’t forget to pay back your EMIs on time to ensure the best experience with your credit cards. Lastly, remember to use your credit cards wisely.

Thursday, August 15, 2013

Great Tips on Dependable Credit Card Usage

In order to get a good deal on your credit card, it’s very important to know few things about credit. But if you ignore to know then it might be very costly for your finances as well as your credit ratings. Even if you know the minimum of the basics then that will also help you a lot. If you have the knowledge on how credit and credit card works then it will be easy for you take the right decision on selecting and using your credit card. In this article we’ll present few great tips which will help you to select the right credit card for you and also guide you through the usage.

Types of Credit Cards:

Though all the credit cards look similar, but as far their terms and conditions are concerned they are different from each other. Many varieties of cards include standard or plain-vanilla cards that contain only standard components. These types of cards don’t offer you cash-back, rewards etc. Student credit cards are intended for young college students. Reward credit card for those people who buy most of the things on a credit card and clear the balance each month. Secured credit cards are for those people who have got into credit card trouble in the past and not eligible to quality for the traditional credit card. Once you are familiar with the different types of credit cards then it will be very easy for you to choose the right credit card for you.

Stick to a budget

The ease of using a credit card could result in the economic downfall since you may wind up paying more than you possibly can afford. That’s why it is very important for you to stick to a budget. If you have started to use a new credit card then, maintain a regular monthly control for the expenses.

An alternative way to monitor the paying would be to register the contact number while using credit card. Each time you swipe the card, you will get a notification in your cell phone, stating your expenditure amount and your remaining balance in your card.

Monthly statement of credit card:

Every month you’ll receive a billing statement of your credit card. Billing cycle is normally between 21 to 29 days. Each month your bank issues a transaction statement and sends the detail to you of that current billing cycle. If there is an outstanding balance in your account then you need to make a minimum payment to reduce the balance or else you can clear the total outstanding balance as well. If you don’t use your credit card for several months then you might not get a billing cycle.

Start with a minimum credit limit and don’t increase:

When a bank provides you with a credit card, it will eventually set a credit limit based on your pay. You may tend to boost this limit to advance more costly expenses. But it's preferred not to do so, at least till the time you are more confident on credit card usage. Though bank may increase your credit limit but at the end of the day it's you who have to pay the amount.

So, unless your monthly earning is increasing stick to a minimum credit limit. Once you realize that you have reached the credit limit then it’s preferred to use cash rather than using your credit card.

Pay back the amount on time:

It is very important to pay back the full credit amount on time. Excellent credit rating is made on on-time payments along with excellent financial debt management. Hence, you should use your credit card to a certain extent which you can easily afford to pay back.

The above mentioned great tips will surely help all the credit card beginners to know about the credit cards and its usage.

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