Credit cards offer many benefits that can make your life easy and provide convenience. The benefits that can be availed through credit cards are:
Benefits of a Credit Card
Secure Alternative to Cash – Carrying cash everywhere comes with a certain risk. If your wallet is lost or stolen then there is not much you could do to recover the lost amount. However, a credit card can be hotlisted so no one can use it. Also if you make payments with a credit card but the services were not rendered, then you can dispute the transaction. This will lead to an investigation by the credit card provider and in the interim period, a temporary credit is extended to the user equaling the disputed amount.
Emergency Cash – Emergencies do not come with a warning and at such times additional cash or credit can help one immensely. Whether it is a medical emergency or an urgent cash requirement, credit cards can come to your rescue by providing cash against credit.
Increased Purchase Power – Credit cards can be used to spend more than you actually have. Credit limits mean you can spend over your actual income. This allows you to make those big purchases that you otherwise could not make.
Interest-Free Credit – Credit cards offer you interest-free period on purchases. This means you do not hold any interest on your spends as long as you pay off the amount within due date.
Grace Period – Some banks provide a grace period of three days on the credit cards. Customers won’t incur any late payment charges during this period. The banks will also not report the late payment to Credit information Companies during the grace period.
Reward Points – Many credit cards offer reward points on the transactions you make using the credit cards. These Reward Points can be redeemed on items, gifts, vouchers, etc. Some of these credit cards offer accelerated reward points when used for certain transactions like flight booking, dining, online or retail shopping, etc.
Welcome Benefits – Most credit cards offer Welcome Benefits in the form of vouchers, coupons and even discount on PVR movie tickets.
Credit Score – A long term benefit of owning a credit card is that you can build a credit score especially if you have never taken up a loan. The credit score is not generated until an individual takes up a loan. The score monitors the individual’s financial responsibility so if you haven’t taken up a loan, then you won’t have a credit report. This will prove to be a hindrance if you apply for a loan in the future. This is because banks are apprehensive to lend money to individuals whose financial behaviour is not known. So owning a credit card can turn out to be a wise financial decision.
Tracking purchases – Transactions made on credit card are always recorded. Your monthly credit card statement will tell you when and where all the transactions were made. This can be used to make your monthly budget and see where you are spending a lot of money.
Premium Benefits of a Credit Card
Premium cards come with additional benefits that are aimed to offer convenience and premium benefits to us. Some Premium benefits include:
Golf Program – Many premium credit cards offer complimentary golf rounds at golf courses around the world. The program can offer complimentary training session, entry fee, green fee, etc. The banks specify alternatively if the individual needs to pay anything extra.
Concierge Services – Most premium credit cards come with concierge services which means you can make use of the services and facilities that are provided on the particular credit card like to make travel itinerary, flight and hotel bookings, customer care etc.
Insurance – Few premium credit cards also provide insurance to the user. The insurance offered can be life insurance, air accident insurance or burglary insurance.
Airport Lounge Access – Credit cards also come with the facility of Airport Lounge Access where one can make use of the benefits that are offered at the Airport Terminals.
Features of a Credit Card
Some key features of a credit card include:
Equated Monthly Installments – Credit card come with the feature of allowing the user to convert their big purchases into EMIs which can then be paid off in parts, every month. The interest charged on the EMIs is much less compared to the interest charged on revolving credit.
Add-on Credit Card – You also have the opportunity to share the features and benefits of their credit card with their immediate family members. Add-on cards allow the family members to make use of the credit limit that was assigned to the primary cardholder.
Utility Bill Payment – Utility bills can be paid through credit card. Moreover, this can be automated by giving standing instructions to the credit card provider. This way you do not have to worry about paying your bills on time.
Worldwide Acceptance – The credit cards are accepted worldwide especially if they use Visa or MasterCard payment network.
Balance Transfer – Credit cards also allow the opportunity to transfer the outstanding amount from other credit card accounts to avail lower interest rates or payback in EMIs.
Draft or Cheque Issuance – Drafts or cheques can be issued against the cash or credit limit on your credit card. These documents are then delivered to your doorstep.
Online Accessibility – Net banking and apps make your financial world more simple and convenient. You can transfer the funds, pay the outstanding amount or simply hotlist your card all from the convenience of your home or mobile.
Cash Withdrawal – Credit cards should not be used for cash withdrawals but if you have an urgent need for cash then a credit card can be used to withdraw cash.
SMS Alert – All your transactions are reported to you via an SMS sent to the mobile number registered with the bank.
Customer Services – Credit card users can avail customer care services to address any query or doubt that they have. The customer care cell is available 24×7.
Waived Annual Fee – Some Credit cards that charge Annual Fee also give the option of waiving it off completely on spending a particular amount in the previous year. This way you can save the fee for Annual Fee of your credit card.
Benefits of upgrading a Credit Card
There are specific benefits that can be availed if you upgrade your credit card. These are:
Higher Credit Limit – On upgrading your card you can get more credit limit which will help you better your credit score along with multiple benefits.
Additional Rewards and Benefits – You can avail more rewards and benefits by getting a premium credit card. If your first credit card was a basic credit that is given to those that are new to credit. Then a new credit card that seeks a credit score will definitely give you better reward points, cash back or Air Miles.
Faster Loan Approval – A good credit score with credit accounts showing timely payments will help the user in attaining loans easily.
Eligibility and Documents required for a Credit Card
The eligibility criteria for each credit card and in fact, each bank varies. But the basic eligibility criteria to apply for a credit card include:
- The card holder must be above the age of 18 to apply for a credit card
- The applicant must have clean financial record and a good credit score
- The card holder should be salaried or self-employed
- The applicant should also have a stable income
Basic Documents required to apply for a credit card:
|Proof of Identity||PAN Card, Aadhaar card, Driver’s License, Passport, Voter’s ID, Overseas Citizen of India Card, Person of Indian Origin Card, Job card issued by NREGA, Letters issued by the UIDAI|
|Proof of Address||Aadhaar card, Driver’s License, Passport, Utility Bill not more than 3 month’s old, Ration Card, Property Registration Document, Person of Indian Origin Card, Job card issued by NREGA, Bank Account Statement|
|Proof of Income||Latest one or 2 salary slip (not more than 3 months old), Latest Form 16, Last 3 months’ bank statement|
How to apply for a Credit Card?
To apply for a credit card, you need to follow the below mentioned steps:
1. Click Here to start with your credit card application.
2. Fill the application form with basic credentials like mobile number, date of birth, income etc.
3. A list will be shown to you according to your eligibility
4. Select the credit card and click on ‘Apply Now’
Alternatively, you can also visit the banks website to apply for a credit card.
What We Suggest
While every credit card comes with a certain benefit, it is important on the other hand to be disciplined about your credit card spending. Owning a credit card means you use it responsibly and make your credit card payments in full and on time to avoid the interest dues. So apply for a credit card which suits your financial requirement in the best way as it will not only help you develop and improve your credit score but will also come with benefits and rewards that you can enjoy in the longer run.