Credit cards are an excellent source of immediate finance. They also boost credit scores with responsible use and on-time repayment. However, many people are unaware of the different financial aspects of these cards. Also, if you have a credit card that is charging you more than being beneficial, then you are either using the wrong card or using it in the wrong way.
If you’re going to apply for a credit card for the first time, you probably have several questions in your mind. Take a look at these frequently asked questions about credit cards.
- What benefits do you get with credit cards?
A credit card comes with various benefits. You get access to finance without paying any extra cost. If you repay on time, you do not have to pay any interest or penalty.
Besides, you can earn rewards, discounts and cashbacks on frequent purchases at partner stores using credit cards. Some financial institutions also offer huge discounts and cashbacks on booking regular flights, swiping at petrol pumps, etc.
- Are you eligible to get a credit card?
There is no stringent eligibility requirement for getting credit cards. You need to be a resident of India, above 18 years of age and with a regular source of income. Both salaried and self-employed individuals are eligible. However, some financial institutions fix the minimum monthly earning as part of their credit card eligibility criterion.
- Is online application and payment secured?
Yes, online applications for getting credit cards are secure.
Also, making payments online to the right vendors is entirely secure. With the technological advancement, now it is also easy to make payments online with credit cards anytime and anywhere.
- What documents do you need to apply for a credit card?
Most financial institutions seek only a few basic documents from customers who apply for credit card.
- How can you improve your CIBIL score by using credit cards?
Credit cards bring you an opportunity to improve your credit score. With regular use and timely repayment, you will have higher credibility and therebyincrease your CIBIL score.You can also improve your CIBIL score by taking loans and repaying them before the term ends.
- Can you repay the used amount early?
Yes, you can repay the used amount at any time within the due date. After the due date, high interests are charged which can create a huge financial burden.
- Which credit card is the best for you?
Credit cards come with different features and benefits. You can choose the right card according to your eligibility, purpose for getting the card, features, etc. You also need to compare interest rates and select one with a comparatively low rate of interest to minimise the risk of massive charge. Some credit cards like the Bajaj Finserv RBL Bank SuperCard come with exclusive features like zero-fraud liability cover, ATM cash withdrawal and many more benefits.
With these questions answered, now you can apply online and get your credit card without any hassle.