The credit card market in India had recorded total transactions worth Rs.59,453 crore in September 2019. According to that same report, it is a 29% increase compared to the previous year.
Another report published around the same time suggests that the credit card market in India is likely to go up at a CAGR of 25% during FY 2020-25.
These statistics are undoubtedly impressive. Moreover, they underline the benefits offered by credit cards.
Thus, if you are wondering how to apply for a credit card, then learn its privileges before you fill the application form.
Privileges offered by credit cards
- Interest-free credit
Credit cards offer you 45-50 days (depends on the credit card company) to pay your outstanding amount. During this period, the financial institution will not charge any interest on the total credit amount. Therefore, compared to other modes of loans, these offer better credit privileges.
- Reward points
One of the most attractive benefits of using a credit card is the reward points that you accumulate. With every transaction you make using a credit card, you receive certain points. You can redeem your credit card reward points in the future for different purposes.
Additionally, if you have any specific credit cards like a travel card, you can earn accelerated reward points on hotel booking, ticket booking, etc.
- Helps in building or improving credit score
Since credit card borrowings are categorized as loans, repaying them on time positively affects your credit score. Therefore, if you have a low credit score and no credit history, you can take the help of credit cards to slowly improve both of these.
On the other hand, if you do not have any credit history or a credit score yet, you can use secured credit cards to build these.
- Offers better security
Carrying credit cards is more secure than debit cards. Additionally, modern credit cards have advanced security features, which makes them a safe way of payment tool.
Furthermore, if you have a credit card protection plan in place, you are secured against frauds, theft, or loss of cards.
- Helps during financial exigencies
Credit cards are a valuable companion to have during any financial emergency. It allows you to manage the situation without worrying about the cash in hand. Additionally, the ATM withdrawal facility provided by these payment cards let you borrow cash in case of any such requirements.
- More convenient than cash
Last but not least, one of the primary benefits of a credit card is the convenience it provides. It eliminates the hassle of carrying cash and writing cheques. It has presented a simple way of making payments. Just swipe the card at any POS terminal, and the payment is complete. Moreover, you can now link your credit card to your mobile wallet, which even eliminates the need to carry the card.
How to apply for a credit card?
With the advancement of technology, you can now apply for a credit card online without much hassle.
- Submit the duly filled application form online.
- Validate your submission by entering the OTP.
- Select the credit card you need, and it is finished.
If you are planning to avail a credit card with lucrative privileges, you can opt for Bajaj Finserv RBL Bank SuperCard. Along with other traditional benefits, you will receive a 50 days’ interest-free period on ATM cash withdrawal.
The increasing popularity of credit cards in India is indicating a shift towards more cashless transactions. If you still have any questions regarding how to apply for a credit card, then contact a company representative and clear your queries.