A Beginner’s Guide on Using Credit Cards in India

credit cards

Intrigued by the world of credit cards, but apprehensive to use them? Credit cards are highly useful tools that offer you easy access to short-term credit besides allowing you to maximise the value of your expenses. You can easily apply online for a credit card and get instant approval if you meet all the eligibility conditions. 

The best way to reap the benefits of your instant credit card is to be aware of the associated terms and conditions, features and be disciplined in your usage. 

Here are some things you need to know before you start using credit cards:

How Do They Work

The credit card issuer sanctions you a credit limit depending on your income and credit score. You can use your credit card to pay your bills, shop, or make any other transaction up to your sanctioned credit limit within a specific period called the billing cycle. 

The used-up amount has to be repaid to the bank on or before the due date to avoid any kind of interest charges on it. You also have the option to pay the minimum due amount at the end of the month and carry over the remaining as an outstanding balance that will attract interest charges daily.

Pros of Using Credit Cards

Credit cards are simple to use, convenient, and quite safe. They give you a chance to earn reward points on your spending. These reward points can be exchanged for cashback or special offers and discounts. Other benefits include access to special offers related to travel or freebies or insurance benefits. 

You need to use your credit cards in a disciplined manner if you wish to keep the cost of using them low. Timely payment of the total due amount on your credit cards will prevent a build-up of outstanding balances and the levy of interest charges on them.

Choosing the Right Card is Important

You have the option to choose from a variety of cards with different features. While some are suitable for people who travel frequently, others target shoppers or fuel purchasers.  

Then there are instant approval credit cards for people who need them urgently to meet some expense. Go for a card that helps you meet your goals or offers you special benefits.

Apply for one or two cards only

In your quest for getting aninstant credit card do not submit multiple online applications as this will hurt your credit score. The best option is to do some research, compare the various types of cards available in the market, zero in on two or three which suit your requirements, check your eligibility for them, and then apply.

Once you get your credit card, you can start using it to pay your bills or do some shopping. But you need to be aware of the various features and the costs associated with your card. Do not use your credit limit fully as this will boost your credit utilization ratio and harm your credit scores. Also, pay your credit card bills on time. Keep track of your expenses and match them with your credit card statement to identify any mistakes or frauds. Use your credit card for expenses that you can afford to pay back.

 

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