If you are salaried personnel, then you may have observed that it becomes tough to make payments if your salary gets delayed for some reason.
Hence, for such a situation and for short-term online purchases that you may break in EMIs, credit cards are best. It is a smart practice to apply for one on a credit card app to build your credit score and more.
Here are 4 reasons why applying for a credit card is a decent thing if you can use it smartly and only for urgent and immediate needs:
1) Enjoy up to 50 days interest-free credit period
Would you say ‘No’ if you are allowed to use someone else’s money for 50 days and pay later without any interest? Yes, if you have a credit card in India and if you transact on it today, then you can relax and pay the bills after a 50 days grace period. The only condition is if today is the starting day of your billing cycle, if not, you may get lesser days to repay. Thus, applying for a credit card on a credit card app makes a difference while indulging in large purchases.
2) Earn cashback, reward points and air miles
On every transaction that you make on a credit card, you are allowed a certain reward point and cashback as per your card benefits. It is possible to enjoy anything between 0.25% and 5% and even more on your expenses; hence, it means saving money. It may be a small amount but can make you save big if you make a large transaction. You can also earn air miles and redeem with air tickets, which means you may enjoy almost a free air ticket once or twice a year based on your expense habits.
3) Enhance your credit score
Based on your expense habit, if you make timely payments, then it is reported to the CIBIL authority of India. Hence, while you keep doing that and use your credit card smartly, you are also ending up building your credit score. In turn, it may help you apply for an unsecured loan or another credit card with a bigger limit. On the other hand, if you don’t pay your credit card bills and other payments on time, then your CIBIL score may take a hit. In turn, you may not be able to get a lower interest loan offer in the future.
4) Use your credit card to pay for your internet purchases in EMI’s
You don’t need to worry and wait for your monthly salary to be credited to buy your favourite smartphone and convert the transaction into an EMI and pay easily. Yes, you can get a credit card using an online credit card app and save your time. Once you have a credit card, you can start cherishing your wishes and pay EMIs without hampering your monthly expenses. Some leading banks and NBFCs offering credit cards also let you enjoy No Cost EMI so that you only pay for your expenses and not anything extra.
The top reasons why you should apply for a credit card in India are enlisted. If you are ready to embrace the plastic money and avoid carrying cash, then you can apply it. It is possible to do that while downloading the best credit card app on your smartphone and get started!
