Friday, October 30, 2020

Factors that Determine your Mortgage Interest Rate

Unlike unsecured loans, mortgage loans come with a low rate of interest, which makes them more affordable than other forms of financing. Regardless, availing...
More

    Latest Posts

    Tips to Tighten your Loose Skin

    As we grow older, our skin begins to change in elasticity due to the loss of elastin, hyaluronic acid, and collagen in the body....

    Tips for Remodeling Homes for People with Disabilities

    Your home is a place of comfort, where you feel loved, safe, and at peace. However, things are not often the same for people...

    Benefits of Traveling Abroad When you are Young

    Now, I finally got to reap all the plenteous benefits travelling abroad as a young man has to offer, all thanks to royal migration,...

    What Does E and O Insurance Cover?

    One of the first things you want to do when you set up a new business is to ensure that it is safeguarded in...

    Some Common Advantages of Having a Credit Card

    As per recent data, India had 52 million credit cards as of 2019. Additionally, premium credit cards saw an increased demand of 43% along with their demands from women reaching a growth of 33%.

    Naturally, the dependence of the general populace on credit cards is increasing, which only gets elevated with the additional benefits they provide. These typical advantages of credit cards, accompanied by an increased spending capacity of cardholders and ease of repayment only make them a competent credit instrument.

    So, take a look at some of the common credit card benefits that qualify the usage of these payment tools. 

    Benefits of credit cards

      1. Attractive reward programs and other perks

    Credit cards come with variegated reward programs and other perks customized as per the spending habits of users. For example, those who often make travel bookings can enjoy travel miles redeemable for future discounts.

    Similarly, fuel purchases and online shopping also help earn multiplied reward points. Cashbacks, discounts, free airport lounge access are some other advantages of credit card usage. Plus, specific cards also bring exclusive privileges for member cardholders.

      2. An opportunity for credit score build-up

    These payment cards are credit instruments that also help holders build their credit scores. Smart usage of credit cards along with timely payment of monthly bills leaves a positive impact on one’s credit history and the consequent score.

    Individuals can also keep their utilisation of the available credit limit within the ideal credit utilisation ratio of 30 to 50% to do the same. 

    Those who are new to the world of credit can also utilise this opportunity for credit score build-up by availing a new credit card and managing it responsibly.

      3. Lump-sum funding as personal loans for exigencies

    Credit cards also serve as a means to finance lump sum emergency funding needs. Some cards allow users to avail of personal loans against the available credit limit to fulfill their urgent financial requirements. It is also among one of the reasons why credit cards are better than debit cards.

    With specific issuers, these loans are available for an interest-free period of up to 90 days. Also, the loans are processed against a nominal fee charged at a flat rate, which also makes them affordable.

      4. Funds readily available for regular expenditure

    Among the most prominent benefits of credit cards is their ability to make funds readily available for regular, day-to-day expenditure. Thus, whether to make online transactions or purchase from a shopping complex next door, you can always use a credit card in place of cash.

    The availability of these funds also increases one’s purchasing power, thus enhancing the credit card benefits.

      5. Interest-free periods

    Credit card benefits also extend to interest-free periods provided on specific usage. They are as follows – 

    • On regular purchases

    Cardholders can plan their purchases with a credit card at the beginning of the billing cycle to benefit from an extended interest-free period. Thus, along with the one-month billing cycle, users can also take advantage of a grace period of up to 15 days before they have to pay the monthly bill on the payment due date.

    • On ATM withdrawals

    Another credit card interest-free period can be availed on cash withdrawals from ATM. Nevertheless, this benefit is specifically limited to cards from specific lenders.

    For example, the Bajaj Finserv RBL Bank SuperCard introduced an interest-free ATM withdrawals facility as an industry-first feature for greater user convenience. The card also comes in different variants suitable for different spending habits and purposes.

    Alongside this, the card issuer makes availing credits simpler and less time-consuming with their pre-approved offers. The offer is available on other financial products as well, such as personal loans, business loans, etc. You can check your pre-approved offer only with your name and contact number.

    As for the advantages of credit cards, make sure to compare different issuers to arrive at a product that combines most of these benefits. It will help you choose the right credit card for you. You can also look for additional features such as the conversion of credit card purchases into EMIs to maximize benefits.

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    Latest Posts

    Tips to Tighten your Loose Skin

    As we grow older, our skin begins to change in elasticity due to the loss of elastin, hyaluronic acid, and collagen in the body....

    Tips for Remodeling Homes for People with Disabilities

    Your home is a place of comfort, where you feel loved, safe, and at peace. However, things are not often the same for people...

    Benefits of Traveling Abroad When you are Young

    Now, I finally got to reap all the plenteous benefits travelling abroad as a young man has to offer, all thanks to royal migration,...

    What Does E and O Insurance Cover?

    One of the first things you want to do when you set up a new business is to ensure that it is safeguarded in...

    Don't Miss

    Use the Loan EMI Calculator to Easily Manage your Personal Loan

    A report by the Reserve Bank of India suggested that the personal loan sector accounted for over 28% of the total loan book value...

    CLAT Preparation- Crack Law Entrance for NLU Admission

    Cracking the CLAT test is a highly coveted dream for most aspiring lawyers. It is being sought by many but accomplished by a very...

    Magento Tweaks for Beginners

    How can you improve the efficiency, performance, and functionality of your online store from the developer’s point of view? There are a great number of...

    8 Regional Weddings in India

    Wedding stage decorations at Weddings vary from one place to another. But mostly what affects every Wedding in India is the difference in community...

    Few Steps for you to Lose Weight but Safely

    Every one of us wants to look good and attractive. Somehow the overweight problem of us prevent us to a good look. We become...

    Stay in touch

    To be updated with all the latest news, offers and special announcements.