Spending is too tempting when you have credit balance in your cards. Your credit is somewhat similar to your health. To maintain stability, you need to keep a check on it, taking the warning indications, minimizing your risks, and taking decisions responsibly. To enjoy your freedom as well as being financially stable is the best way to stay healthy. One of the options is to calculate your credit requirement and find the best credit card in India in the domain which will satisfy your needs the best way possible. Top credit cards in India can be an excellent way to take the first step towards your financial security.
When you have a credit card, you do not always overthink on the last-minute plans with your friends or any other event. Without being too stressed, you can swipe your credit card and earn some rewards and cash backs. Furthermore, if the bills are paid before the due date, you won’t be charged the interest amount.
The best credit card in India for you is the one that meets your needs and requirements the best possible way while keeping you financially sound. In this article, read on the 6 ways to attain financial stability by using credit cards.
1. Boosting your credit score: The credit score is generally between the value 300 and 850, a higher credit score indicates that you use your credit consistently yet responsibly which gives you a better trust factor while getting a loan or borrowing amount from the lenders. This score opens up the opportunity to easily avail and approval of the loan during any financial emergency. This is the first step towards achieving your financial freedom as you will be well prepared for any unforeseen circumstances. You need to keep in mind that the bills and EMIs should be timely paid to maintain and improve your credit score. The credit score is calculated majorly considering the following six points:
- On-time payment percentage
- Credit card utility
- Total credit inquiries
- Number of accounts
- Derogatory remarks
- Account holder’s average age
2. Going cashless: Possibly the best utilization of the credit card in the current situation. Going contactless and cashless are the safest solution, you no longer need to pay cash to the delivery person, calculating the change, and struggling to give the exact amount. Maintain the social distancing rule!
3. Account protection: Making payments from your credit card keeps the records electronically for all the transactions you do. All the settlements done are secured and electronically encrypted, moreover, the servers are secured which help in preventing frauds and hence are an absolutely safe mode for payments. Additionally, this helps you in maintaining the tab on the expenditure, giving you the freedom to stick to your budget. In case the cards are misplaced or stolen you can just freeze your card over a phone call to the respective company.
4. Increment in spending capacity: We all are great planners, but when it comes to spendings, all our plans kind of don’t matter. When you see a dress you would like to buy or a pair of new shoes online which would perfectly suit you, the plans do not matter at that point! In such situations, the credit card comes to your rescue. The credit card has a monthly limit that you can spend over, helping you go beyond your limits. This makes a comfortable option as you can pay the EMIs easily over a period of time.
5. Discounts and rewards: You need to have a credit card as per your requirements which will increase your chances of receiving the rewards on a frequent basis. Analyzing your needs and choosing the card in your line of preference can also result in getting multiple credit cards. For example, if you regularly buy baby products for your new born child, you can avail bigger discounts compared to the non-cardholders, loyalty points can be accumulated by buying the toiletries and groceries from the same store. Besides your personal life, if you are also a frequent flier, you can get a credit card which can give you maximum reward points per mile you travel, if you collect these reward points you can sometimes fly for free or maybe you can redeem the points on your hotel booking!
6. Vacation reservations: Everyone needs a break from their daily routine, a good vacation time which will refresh you, give you the time to spend with your family and friends. When you make the reservation for your hotels, rental cars, or flights, most of the time for hotel reservations the authorities generally ask for the credit card number. Depending on the policy of the company, they may use your credit card number to make your vacation more smooth and hassle free.
There are many other points to consider to get a credit card for your benefits like planning your finance in a better manner, budgeting your income, and paying your bills, moreover, you can also use it for emergencies like the current situation of a pandemic. Lastly, to discover the best credit card in India for your needs, requirements, and aspirations, it is always advisable to strategically do your homework on various credit cards available in the market. Additionally, don’t forget to make a smart plan on how to use your credit card as it can be a double edged sword if not planned well!