Some time ago, I was afraid to take a new credit card myself. Why?
Because many people say that credit card takes extra charges & the interest is too high. Even, my friend told me not to take any credit cards.
One day I get a call from SBI bank for a pre-approved credit card. After some document verification, I take the card. This was one of the best dictions for me.
Most people don’t know how to use credit cards in the right ways to make them profitable. So, they are afraid to take the card.
After reading this article, you will defiantly take the credit card that will match your profile.
1. Pay the Bill Later
This is one of the best parts of using a credit card. You can pay the credit card bill after 50 days. A credit card gives you 40 to 50 days duration to pay the due bills. Also, you don’t have to pay an extra charge if you pay the bills on time.
Sometimes people pay the minimum amount without paying the full amount. This is the worst decision. If you pay the minimum amount without paying the full due amount, you have to pay interest on the due amount. Don’t fall into this trap.
2. Increase Credit Score
You can boost your credit score fast through a credit card. If you use a credit card the right way, you may build a good CIBIL Score. The following way you can increase the score:
- Pay credit card bills on time.
- Use 30% of the credit limit.
- Track daily expenses
This will help you to build your credit score fast way. It will benefit you later when you going to apply for a loan in the future.
3. Save Money on Cash Back Offers
Most people love to do online shopping. If you have a credit card, you can save more money through online rewards & cashback offers. Also, online shopping platform gives you extra discounts on purchase through credit card.
You can save 1% -2% cash back points on a card. This offer is available on most of the cards.
Also Read: Slice Credit Card
4. Joining Bonus
Most credit card companies provide a joining bonus. As a new cardholder, the company gives you the welcome kit. This will differ from card to card.
Some credit card companies give you sign-up bones. For example, if you spend a 000 amount, you will get a bonus. As soon as you receive these bones claim them.
5. Balance Transfer Offers
This is another great feature of credit cards. You can transfer your balance to another card. Basically, Balance transfer allows you to transfer the existing credit card balance to a new one and you can make the other card payment on time without paying interest.
This is an interest-free offer. Credit cards do not take extra charges for balance transfer features.
Also Read: WeRize Personal Loan
6. Other Benefits
Credit cards give you tons of benefits. For example, you can waive annual charges to spend a specific amount. Also, premium credit cards give you free travel insurance, free lounge access, cash back on hotel bookings, and more.
You should choose the right card that will best for your needs. And you can enjoy these benefits too.