What are the advantages and disadvantages of credit card?
Credit cards are an invaluable financial tool which gives access to instant credit during a cash crunch. You can manage your finances better with the various features and advantages of a credit card. The Bajaj Finserv RBL Bank SuperCard combines the power of 4 cards in one and makes your purchases more affordable and convenient.
If you wish to apply for one, below are a few credit card advantages and disadvantages to check out.
Advantages of credit card
- Easier to make big-ticket purchases
Purchase high-end products using the credit card and convert the amount into easy, manageable EMIs.
- Accumulate reward points
The Bajaj Finserv RBL Bank SuperCard brings attractive reward points with almost every transaction. Redeem these points for exclusive discounts, gift vouchers, cashback, etc.
- Increase your credit score
Payment of credit card bills within the due date every month increases your CIBIL score significantly. A good credit profile can qualify you for a loan or a new card in the future.
- ATM cash withdrawal with 0% interest
The Bajaj Finserv RBL Bank SuperCard allows you to make cash withdrawals from ATMs with no interest for up to 50 days. Meet your cash needs instantly and repay later easily.
Disadvantages of credit card
Besides the pros, there are certain disadvantages of a credit card you must know of.
- High rates of interest
Failing to pay off the outstanding dues on your credit cards within the due date incurs high-interest rate. You can avoid paying additional interests by making timely repayments every month.
The ease of using credit cards often leads to overspending. This can create a financial mess and also affect your credit profile negatively. Try to keep the credit utilisation ratio below 50% of the total available limit.
Be responsible with its usage to enjoy the advantages of a credit card and save more on your expenses effectively.