With over 58 million or so credit cards in use in India, credit card use is on the rise. Online credit card use is more prevalent, as credit cards give you many easy ways to purchase goods without contact, as well as buy expensive but required products, like home appliances on EMIs. If you are wondering how to use a credit card to your benefit, there are many ways.
Credit cards that are available to you from various banks and non-banking financial companies are of different types and there is at least one to suit every customer’s requirement. For instance, a great overall credit card is the Bajaj Finserv RBL Bank SuperCard, giving you four functions in one. Here, we explore five main benefits of using a credit card.
1. Bonuses and Offers – When you initially get a credit card, banks and NFBCs offer you a host of welcome bonuses. For instance, you get several reward points during the first year of use. Besides welcome bonuses, credit cards give you offers that you cannot refuse.
These are particularly prevalent during times of sales and festival offers in the form of cashback as a percentage of purchases or a flat cashback amount on certain products with specific cards. Bonuses in the form of rewards can be redeemed for gift vouchers, travel and even to pay utility or credit card bills.
2. Safety and Security – When people think about what is the benefit of a credit card, they have the safety aspect of card use on their minds. Nowadays, safety has another connotation where credit card use is concerned, with contactless payment modes that are getting more advanced. For instance, the ‘tap and proceed’ cards are useful for absolutely zero contact, where you don’t even have to swipe or dip your card into a device.
Besides this side of ‘safety’, using a credit card is more secure than carrying cash around. Credit cards also give users transparency in payments and avoidance of losses against fraud. When a credit card is used in a fraudulent way, you can not only block your card use instantly online, but you won’t have to pay for the expenses. Networks of credit cards like Visa and MasterCard offer zero liability coverage to enhance their use.
3. Affordability with Ready Cash – How to use a credit card wisely is one of the key things to consider while using a handy payment instrument that gives you the power of cash anytime. If used sensibly, it can offer instant funds during times of emergencies. You can also avail the useful EMI facility it offers, affording flagship items and paying gradually in instalments.
4. Rewards – The reward points you get with each distinct credit card may vary, but you get some points with every card you use. Generally, you get around 2x reward points for every 100 INR spent on the card, and with high-end cards like some corporate cards, you stand to earn up to 10x reward points for every 100 INR spent. You may also earn reward points on specific cards, say more points on fuel cards when you use your credit card at particular fuel outlets. Specifically, reward-based credit cards give you rewards in distinct categories while you shop. For instance, if you spend frequently on groceries, you may want a reward card that gives you the most rewards in the category of grocery shopping.
5. Types of Cards – If you want to know how to use a credit card to your advantage, you should opt for any credit card that matches your characteristic spending behaviour. If you shop online frequently, for instance, you may want a card like the Amazon Pay ICICI Bank credit card that gives you perks while you shop.
The Right Card
Today, the right card for any regular use can be the Bajaj Finserv RBL Bank SuperCard. This credit card can be your best friend with four purposes, as it acts as a credit card, an EMI payment tool, a loan instrument and a cash card.