Managing last minute finances can be excruciating. Especially when one does not have any savings kept aside. A credit card can be helpful in such situations. Many financial and non-financial institutions allow an advance personal loan on your credit limit at nominal interest rates. This could be helpful when it comes to payments of monthly bills and managing your expenses.

What is a Credit Card?

It is an offering by financial institution that allows borrowing of funds from a pre-approved limit for your finances. The credit limit is decided by the institution supplying the card based on your credit score. Higher the credit score, the more your credit limit will be. The repayment of the amount borrowed should be done within the stipulated time to avoid penalty charges.

One of the advantages of owning one is the easy conversion of your purchases into EMIs for easy repayments. The Bajaj Finserv co-brand credit card allows one to avail an emergency Personal Loan for an interest-free period of up to 90 days on their credit limit. You can apply online with the credit card app from Bajaj Finserv.

Reasons why to Opt for A Credit Card!

1. Earn & Redeem Reward Points on your Purchases

Payment through your it earns you points which can be later redeemed to get discounts on flight tickets, hotel bookings, shopping and more. The points can be availed to get exclusive vouchers for shopping and cashback at times. If such earnings thresholds are met, your points can be exchanged through the credit card app of the issuer for flights, gift cards from retailers and restaurants, or for merchandise items.

2. Repayment window

Unlike a debit card, the use of credit card does not deduct the money from your bank account instantly. When you make a purchase using your card, the amount is deducted from your per-approved limit and can be repaid within the repayment window to avoid penalty charges. When you use a debit card to make a payment, your money is automatically deducted from your account. Your money stays in your bank account when you make a payment before you pay your bill. With a credit card app you can view and track your credit card statements and it will help in timely payments of your bill.

Read Also – Which is the Best- Personal Loan or Credit Card?

3. Flyer-Miles

Owning a card not only earns you reward points, but flight bookings made through it can get you flyer miles. Accumulated flyer miles can be redeemed to get discounts on your flight tickets. Many credit card apps offer free airport lounge services up to 9 visits. Cardholders usually earn mile points on net transactions. Currently many domestic as well as international airlines offer at least one from a major issuer. Credit card app from Bajaj Finserv allows free airport lounge access for an allocated number of visits in a year.

4. Increases your Purchasing Power

Owning one can be very beneficial when it comes to traveling and shopping. Sometimes one may not have the minimum balance in their account to carry on with their purchases. In such cases, it is very useful. Repayment of your borrowed amount done in the stipulated time ensures you are not charged with any penalty or interest charges.

5. Can be used for Global Transactions

Credit cards have a universal acceptance. When traveling abroad, it can be a savior by your side. Especially when it comes to booking a hotel or shopping abroad. It can come in handy as many countries do not accept debit card. Also, it comes in handy in case of emergencies when traveling. Also, paying with a one helps to avoid thefts and losses from fraudsters.

6. Helps with your CIBIL score

One of the most important features of it is helping in improving your credit score. Using one dutifully can help in improving your CIBIL score. A lot of banks and lending companies check your Credit (CIBIL score) when it comes to loan disbursal. Credit card app can help you with timely payments of your bills to help maintain your CIBIL score.

Credit cards when used dutifully can be a blessing. Also, timely payments the amount due can help in maintaining a disciplined routine to avoid payments of any penalty or interest charges. Also, many online credit card apps allow interest-free cash withdrawals for a month. Owning one will reduce the usage of your debit card & can help in earning multiple reward points which later can be redeemed to get discounts on your purchases. So, to conclude, it helps in payments during emergencies and timely payments in turn help to improve a good CIBIL score.

If you can use a credit card responsibly, there’s really no reason not to. They offer rewards, protection, and convenience, and report to the credit bureaus making it easy for you to build your credit. That’s Why You Must Opt for a Credit Card.