How to make the best use of your Credit Cards?

Credit cards are fantastic to have. They certainly make everything accessible to you, irrespective of your budget or income. They are simple to use and carry. Moreover, using them can offer you multiple benefits. It is safe to conclude that with so many advantages of credit cards, these little tools are nothing short of awesome.

Are you not convinced? Read on to know the numerous ways in which a credit card can deliver you nothing but the best.

Unlock several rewards
 

Credit card reward points can help you in so many ways. Each time you make a purchase, reward points are added to your account. These rewards keep accumulating in your account and can later be utilised. The reward points also help you enjoy discounts on various products and services. For instance, the IDFC FIRST Bank Credit Cards offer upto 10x reward points on spends done through the credit card and you can redeem these Reward Points as Cash against your online spends.

Build your credit score
 

Credit cards are not just for purchasing the things you want. They work on multiple levels. One of the greatest advantages of credit cards is that they help you build your credit score. Your payment history on the credit card is reported to the credit bureaus. This ultimately affects your CIBIL score. Your score is checked by all lenders when you apply for any kind of loan. The decision to offer you a loan and the interest rate on your loan can largely depend on your CIBIL score. If the score is low, you may find it hard to get your loan approved. Moreover, your interest rate would likely be high even if you get the loan. Contrarily, a high score can make it simpler to get a low-interest loan quickly. So, use your credit card to pay for things and build your credit score over time.

Pay your debt
 

If you have multiple high-interest Credit Card debts, you can transfer them all to a low-interest credit card. Many credit cards offer introductory offers of low interest on your dues. You can use such a card and opt for a balance transfer option. Under this, you can transfer your existing high-interest debt to the new low-interest card. This way, all your debt gets accumulated in one place, making it easier to settle. Moreover, you are able to clear your outstanding amount sooner with a lower rate of interest.

Finance a purchase
 

Buying products and services that are high in cost requires prior savings. This may take months or even years, depending on your income and budget. However, credit cards enable you to make high-value purchases with greater ease. You can make a purchase and pay back the money over a period of many months. Credit cards take away the burden of immediate payments, not only making the entire process hassle-free but also achievable.

EMIs
 

Equated monthly instalments (EMIs) can be a great payment method for your occasional splurges. It allows you to fuel your dreams without being heavy on the pocket. When you make a high-value purchase through your credit card, you can repay the money in EMIs spread over time. EMIs make things more affordable and ensure you never compromise on your wants.

Pre-approved loans
 

Pre-approved credit card loans are linked to your credit card. Many credit cards come with a pre-approved loan limit that allows you to take collateral-free loans. If you opt for this loan, you can repay the loan amount through your credit card. The loan amount is added to your credit card bill, and you can pay it back via EMIs every month. Since these loans are collateral-free, you require minimal to no documents. Pre-approved credit card loans can be a saviour if you have a pressing financial need that requires instant lump sum money.

To sum it up
 

It is only fitting to say that credit cards are indeed awesome with all of these benefits. They can help you simplify your finances in so many ways. Moreover, with the increasing use of online and contactless payments, opting for a credit card can be one of the best things in today’s times. So, go ahead and get a credit card and unlock plentiful benefits.

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.