According to the Reserve Bank of India report released in February 2024, over 100 million credit cards are in circulation in India. This proves that credit card is a popular payment option. Why? Because it helps you manage your requirements, whether planned or unplanned, and improve your financial health.
Here are ways you can boost your financial health if you choose to apply for a credit card.
Provides Additional Financing
One of the key reasons you may want to choose a credit card is to have extra money aside from savings and salary. This can be very helpful when financial needs arise unexpectedly, such as:
- Medical emergency
- Urgent travel costs
- Purchasing costly items like furniture or electronics,
- Last-minute bill payment
Instead of seeking help from friends and family or utilising your savings, credit cards are an ideal choice as they offer a short-term loan with an interest-free period. Simply put, it helps you enhance your purchasing power and pay for your needs without straining your finances.
Build a Good Credit Profile
A good credit score is the foundation of good financial health, and a credit card can help you achieve this over time. How? With discipline. You can use the card to pay for your purchases and pay back on time at a later date.
Paying on time is crucial here as it shows responsible repayment behaviour, which helps build your creditworthiness. Additionally, you should avoid relying too much on the minimum payment option and utilise no more than 30% of the limit.
This reflects positively on your credit profile, enabling you to enjoy better and more affordable access to credit in future.
Maximise Savings
Reward programs are another outstanding feature of credit cards that help you save money as you make everyday purchases. You can use the accumulated points as:
- Cashback
- Discounts
- Vouchers
- Buy gift cards
- Shop catalogue products
Many issuers even offer accelerated rewards upon reaching the milestones set by them. So, the more you use the card, the more you stand to save.
Enjoy World Class Privilege
Be it for business or personal, the cost of travelling can add to your financial burden. But with credit cards, you don’t have to worry about the additional cost or compromise your comfort. Many credit cards offer discounts on flight and hotel bookings and complimentary domestic and international lounge access.
If you are a travel enthusiast, you can even get a travel credit card that offers exclusive travel-related perks. You get to enjoy your trips in style without spending more than required. Some of the most common travel benefits are:
- Option to convert reward points into air miles
- Priority passes
- Complimentary meals at select restaurants
- Hotel room upgrades
Better Security Features
Paying with cash can be very inconvenient and risky, especially for large transactions. If you lose the cash, there is no way to get it back, resulting in a substantial loss. On the other hand, it’s easier and safer to carry substantial money on a plastic or metal card and shop without stress.
These cards come with robust security measures to protect your finances and identity. In the event of a fraudulent transaction, you can benefit from zero liability. According to this, you are not liable to pay for the unauthorised transactions. This protects you from added financial burden.
Become Financially Disciplined
When used for day-to-day purchases, a credit card can help you keep track of all your expenses in one place. Issuers generate your monthly statement, which gives you an idea of where you spend your money. This is useful to keep track of your spending habits.
If you see many unnecessary or impulse purchases, you will know where you have to make cutbacks. It guides you to what you can afford with your monthly income. Over time, this makes you responsible and in control of your finances, improving your financial health.
If you decide to apply for a credit card after knowing all these benefits, then there are many options you can choose from. One of them is the One Credit Card. This card gives you 5X reward points on your top two monthly spending categories.
Using these reward points, you can unlock many offers and discounts when purchasing from partner stores. You can also convert them into cashback to lower your bill. When it comes to savings, this card also helps you save on annual and joining fees.
You also don’t have to pay any charges when redeeming your reward points. Other perks involve no-cost EMI, low forex charges, fuel and travel benefits, and more. Apply online to get this lifetime-free metal credit card now.
