Low salary? You can still get amazing credit card features to be you

During the fourth quarter of 2022-23, more than 3.9 million Indians joined the workforce, on top of the 11.2 million who gained employment during the previous three quarters.

A credit card with good features is difficult to obtain for new earners. Card issuers are reluctant to issue credit cards to these customers due to their low salaries or nonexistent credit histories. Most card issuers prefer customers with a steady income and good credit score because they are less likely to default on their payments.

Even if new earners do obtain a credit card, they are unlikely to be able to take advantage of premium credit card features.

Paycheck to paycheck

The North American expression, “living from paycheck to paycheck” epitomises the hardships faced by people with low salaries and first-time employment.

As someone who has just started working, you will have to prioritise your spending and watch your expenses regularly. While budgeting is a healthy financial habit, for low-income families it is more of a compulsion.

But as a new hustler, it is natural for you to aspire for material luxuries. Premium credit card features like airport lounge access or a fine dining discount may seem out of reach at this point. However, if you manage to identify the right credit card, you can enjoy compelling credit card benefits. 

Credit card features to look for 
 

Here are some of the credit card features that you must look for as a new earner 

· Eligibility
 

Credit card features improve as the card gets more and more premium. But you may not meet the eligibility criteria required for a premium credit card.

For someone with a first job and low income, credit card eligibility is often the first hurdle. Apart from first jobbers, this obstacle is also faced by students, housewives, senior citizens, etc.  

· Credit limit 
 

Even if you are eligible for an entry-level credit card, the credit limit offered might be too low. If you find multiple credit card options, always compare the credit limits offered on each of them. The credit limit is one of the important credit card features that impact your monthly card usage capacity.

· Rewards programs  
 

The reward program is considered to be the showstopper among credit card features. How many reward points do you earn every time you swipe your card? Where can you use the points? Which transactions are eligible for reward points and which aren’t? These are some of the things you must check in a reward program. 

· Interest rates and fees
 

Since you have just begun earning, there may be times when you pay only part of your credit card dues. If the credit card interest rate is high, your outstanding amount may increase significantly with each billing cycle. This can lead to a debt trap.

Apart from interest rates, there are various other charges that can increase your cost of ownership of the credit card as well as the cost of borrowing. If available, always check the Annual Percentage Rate (APR) of the credit card as APR gives a more complete picture of the cost of borrowing against the credit card.

· Offers and benefits  
 

Available offers are another key credit card feature that can save you money. Credit card benefits and offers include a joining bonus, fuel surcharge waiver, insurance cover, online and offline purchase discounts etc. By using the credit card benefits and offers smartly you can save money and also enjoy your credit card to the maximum.

· Balance transfers and EMIs

Balance transfer is useful if you already have a credit card with a high rate of interest. You can transfer the outstanding dues to another credit card with a lower rate of interest. EMI is another credit card feature that comes in handy. With this, you can convert your credit card transactions into easy EMIs.

Choose credit card features like low processing fees on EMI and balance transfer and flexible repayment terms. 

Is there a credit card for new earners? 
 

If you are a new earner who is looking for a card with the ideal credit card features, the FIRST WOW! Credit Card can be tailor-made for you. You get 

· Assured credit card 
 

The FIRST WOW! Credit Card comes without any strict eligibility criteria. It is issued even to customers who don’t have a credit history. Besides new salaried persons, potential customers include students, travellers, self-employed persons, homemakers and senior citizens.

· No income proof required
 

No income proof is sought while issuing the FIRST WOW! Credit Card. The card is issued against a minimum fixed deposit amount of ₹20,000 with IDFC FIRST Bank, so the higher the FD, the higher your credit limit. Credit limit and cash withdrawal of up to 100% of the FD amount are among the attractive credit card features on this card.

· Welcome benefit
 

FIRST WOW! Credit Card offers a welcome benefit of 5% cashback up to Rs 1,000 when the first EMI is done within 30 days of card generation.

· Low cost
 

FIRST WOW! Credit Card has attractively low charges. It comes with zero joining and annual fees. There are no interest charges on ATM cash withdrawals. Besides, shopping on international websites will be cheaper as there are no forex conversion fees charged by this credit card.

· Attractive reward program
 

With FIRST WOW! Credit Card you can earn 4X reward points on your transactions. IDFC FIRST Bank reward points never expire and can be redeemed anytime for online purchases. You can also redeem the points against gift vouchers.

· EMI and balance transfer
 

You can convert your FIRST WOW! Credit Card transactions of Rs 2,500 or more into easy EMIs. An attractive balance transfer facility is also offered as a part of FIRST WOW! Credit Card features.

· WOW! offers
 

By using your FIRST WOW! Credit Card you get over 50 in-app discounts, up to 15% discount on over 3,000 health and wellness outlets, and up to 20% discount in over 1,500 restaurants.

· Save on your travels
 

Fuel purchases made using the FIRST WOW! Credit Card is eligible for a 1% surcharge waiver. Besides, you also get complimentary roadside assistance of Rs 1,399 and personal accident cover of Rs 2 lakh on this card.

Conclusion

With a host of WOW! benefits and attractive credit card features, the FIRST WOW! Credit Card is ideal for you, even if you have just started working and don’t have a credit history. Give your credit card journey a dream headstart with the FIRST WOW! Credit Card.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.