By 
According to a report by Economics Times, the user base of credit cards in India for 2019 stood at 47 million users. It is expected to grow at a compound annual growth rate of 25% from 2020 through 2025. These statistics evidence the growing preference towards credit cards of Indian consumers.
The advantages of using a credit card are plenty. Credit cards not only help you during a cash crunch but also offer a world of offers, opportunities, and discounts. Many players have entered the credit card market owing to the potential of this segment. Thus, consumers have a large variety to choose from.
Credit cards are easy, simple, and user friendly. You can even save while using credit cards. We have shared a few ways below:
Choose a correct variant
-
- Every bank offers many credit cards. Hence, when you apply for a new credit card, search the market for the available and most suitable variants for your needs. Research the cards offered by each bank. For instance – RBL Bank itself has over 40 plus variants of credit cards for its customers.
-
- Finding an apt credit card will help you with optimal usage of the cards and assist you in avoiding a cash crunch situation.
A. Rewards and Bonuses
-
- Financial institutions that offer credit cards respect, honour, and value their relationship with their customers. Hence, you can earn many rewards and bonuses based on your continued spending. Higher spending means more rewards you earn. These can be in the form of discount coupons, free movie tickets, frequent flyer miles, fuel redemption points, hotel stays travel options, gifts, lounge accesses, free dining experiences, etc.
-
- Bonus points can be earned if your spending on the card reaches a considerable limit. Bonus points’ redemptions and gifts are additionally offered over and above the reward points.
B. Cash Back
-
- Many credit cards have the option of converting reward points into cash. It means that the spending on your card would earn points, which can pay a credit card bill. Each point is worth a monetary amount. Upon redemption of these points, the monthly bill gets reduced by the respective money value of the points you have redeemed.
-
- Thus, your credit card expenditure simultaneously would pay the credit card bill itself!
C. Grace Period
-
- Unlike the debit card, a credit card gives you time to repay the amount used. When you use a debit card to make a payment, you are paying for the product and service from your account. But every time you swipe a credit card to make a payment, you get the product or service immediately. However, the actual debit happens almost a month later, based on the billing cycle.
-
- It means, until such time, your funds are in your account, and you can earn interest or invest or use elsewhere as per your convenience. The due date of your credit card bill is when you debit your account.
D. Bottom Line
-
- In conclusion, credit cards require financial discipline and integrity. You should keep track of your expenses and ensure that you do not overspend. You should only spend an amount that you shall be able to pay off completely by month-end.
-
- Further, always keep track of your credit score. Do not delay payments or bills, as this may adversely affect your creditworthiness.
A credit card is a great option, but remember, this is a kind of loan which has to be paid back as per your billing cycle. So, use it carefully. Shift your regular expenses to a credit card to earn rewards, bonuses, and cashback!
