An effective mode of payment, credit card adds ease to all lives. If used responsibly, credit cards are indeed a blessing. You're actually better off paying with a credit card than a debit card and keeping cash purchases to a minimum if you can utilise the cards properly, contrary to popular assumption.
Q] What is the difference between a credit card and a debit card?
A credit card allows you to borrow money
from a credit card business in exchange for agreeing to pay a percentage of
your outstanding debt in interest at the end of each billing cycle. A debit
card withdraws funds straight from a linked bank account. Credit card usage
that is done responsibly might help you create a positive credit history. Debit
cards, in general, are unable to do so.
Q] What are the advantages of a credit card?
Credit cards also aid in the improvement of
your credit score (CIBIL score). When we don't have the funds available right
away, it can also be a valuable tool for purchasing large-ticket items like
televisions, vacation packages, and jewellery. Having another payment method in
your back pocket has its benefits. For starters, you'll have a safety net in
case you run into a budget problem soon. You may just open your wallet and
charge it to your card if you're short on cash and your automobile requires new
brakes.
Q] How does a credit card help with my credit score?
You'll need a credit score if you wish to
borrow money because it's based on your financial activity history. These
ratings are influenced by your credit card history. Using your credit card
responsibly is good to your financial health on multiple levels. To begin, you
can increase your credit score by using credit responsibly, which means
spending less than 40% of your credit limit and paying your bills on time and
in full.
Q] What is the eligibility criteria for a credit card?
You must meet certain eligibility standards
in order for your credit card application to be approved. Different parameters
may apply to each bank or lender or card. Your application may be refused if
you do not meet the bank or lender’s requirements. Your credit score may suffer
as a result of this. The common parameters for acceptance is age, stable income
source and your credit history.
Q] Can I manage my credit card with my mobile?
Yes, you can manage your credit card with a
mobile app. Credit card lender such as Bajaj Finserv have a mobile app to help
keep track of your credit card spends. With the Bajaj Finserv app, you can
easily pay all your credit card dues.
Q] Is shopping online easier with a credit card?
More purchase protection, as well as
additional warranties and benefits, are frequently available when shopping
online with a credit card rather than a debit card. Although not all credit
cards are made equal, many of the best ones include features like purchase
protection, extended warranties, return guarantees and rewards programmes.
Read Also - Things to keep in mind before applying for a Credit Card
Q] How do I redeem reward points on my credit card?
Some programmes have no expiration dates,
so you can earn and redeem prizes whenever you choose. Others offer annual
programmes with "use it or lose it" stipulations that require you to
redeem prizes within a specified time frame or they will be forfeited. Check
your Credit Card Agreement to see whether and when your benefits may expire.
Q] Can I pay my monthly bills with a credit card?
Yes, you can easily pay your monthly bills with
your credit card app. With apps like Bajaj Finserv, you can pay all your bills,
simply from the payment gateway, choose credit card and enter your details. You
can also save your card details for hassle-free checkout.
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