As per the Reserve Bank of India, the number of credit cards grew 26.6% YoY as of May 2019. Payment industry executives have also declared that such growth in credit card circulation has resulted in the rise of various business opportunities across India.
The number of credit card users in India, and not just the cards, is on the rise. However, new users should know about credit cards thoroughly before availing such a payment tool.
What do you mean by a credit card?
Credit cards are regular plastic cards issued by financial institutions used as a payment instrument. Such a card allows a user to borrow funds and deal with any monetary transactions. However, cardholders are required to repay the borrowed sum to the card issuer along with pre-determined charges, if any.
Several financial institutions in India also provide a line of credit such that cardholders can avail funds as cash advances. Card issuing companies usually have a borrowing limit pre-set as per the monthly income of a user.
How can credit cards improve your financial situation?
Credit cards are considered as the most secure and convenient payment method in every corner of the world for its various benefits, which are –
- Instead of carrying cash with you all the time, usage of credit cards offers easier access to funds for any transaction.
- Compared to a debit card, you can make instant payments with a credit card even if you do not have adequate balance in your savings account for the purchase.
- Since the funds availed during any transaction through credit cards are provided by the card-issuing company itself, payment with such cards is regarded as the most secure and thus globally accepted.
- One important thing you need to know about credit cards is that cardholders can also avail a balance transfer facility where they can transfer the utilised credit and current outstanding dues to another credit card account. You can reduce your credit card interest and save money with a balance transfer.
- If you are unable to pay all your outstanding dues at once, you can opt for partial payments to reduce any added stress on your financial well-being.
- Users can make use of the EMI option to purchase any item of substantial monetary value. With the Bajaj Finserv RBL Bank SuperCard, you can convert high-end purchases into EMIs without any hassle.
- With every transaction, credit cardholders can accumulate reward points which can be redeemed to avail discounts, gift vouchers, cashback offers, etc. Some credit card issuers also reward customers with exclusive privileges such as complimentary flight booking, movie tickets, etc.
- Paying your credit card bills within the payment due date helps to build a strong credit history, showing responsible repayment behaviour. This results in a positive impact on your CIBIL score. Hence, now you understand how you can use a credit card to improve your credit score.
How to apply for a credit card online?
In order to apply for a credit card, you can consult this online application process –
- Visit the online credit card portal of your financial institution from whom you want to avail the credit card.
- Check the demands of the eligibility criteria to make sure you satisfy all the requirements.
- Click on the ‘Apply Now’ option next to be redirected to the credit card application form.
- Fill up the application form with the necessary information and attach all required documents.
- The financial institution will process your credit card application and get in touch with you within 2-3 working days.
Hence, from the above discussion, you get to know about credit cards and how they make a positive impact on improving your financial situation.