What is the benefit of a credit card?

2 min read

Credit cards are invaluable financial tools that give you access to instant credit during a cash crunch. You can also manage your finances better with the various features of a credit card, such as rewards and offers. The Bajaj Finserv RBL Bank SuperCard combines the power of 4 cards in 1 and makes your purchases more affordable and convenient.

Here are a few credit card advantages and disadvantages to keep in mind.

Advantages of a credit card

  1. Big-ticket purchases with ease
    You can purchase high-end products and services using your credit card and repay with ease later. Some credit cards also allow you to convert big-ticket purchases into easy, manageable EMIs.
  2. Reward points usage
    The Bajaj Finserv RBL Bank SuperCard offers attractive reward points with almost every transaction. Redeem these points for exclusive discounts, gift vouchers, cashback, and more.
  3. Increases credit score
    Payment of credit card bills in full within the due date every month increases your CIBIL Score significantly. A good credit score can help you qualify for a loan or a new credit card with a higher credit limit easily in the future.
  4. Interest-free cash withdrawal
    The Bajaj Finserv RBL Bank SuperCard allows you to make interest-free cash withdrawals* from ATMs for up to 50 days. This helps you meet your urgent needs instantly and repay later easily.

Disadvantages of a credit card

  1. High-interest rates
    Failing to pay the outstanding dues on your credit cards within the due date incurs a high-interest rate. However, you can avoid paying additional interest by making timely repayments every month.
  2. Can lead to overspending
    The ease of using credit cards can often lead to overspending. This can create a debt burden and also affect your credit score negatively. Try to keep your credit utilisation ratio below 50% of the total available limit and be disciplined about repayment to avoid this.

Being responsible with credit card usage allows you to enjoy the advantages of a credit card and save more on your expenses.

*A flat processing fee of 2.5% of the cash amount (minimum Rs. 500) + GST.

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What is the benefit of having a credit card?

Credit cards offer the convenience of spending whenever you require. Further, you can enjoy benefits like a welcome bonus, reward points, and more. The use of credit also helps build your credit score but it is important to use them responsibly to avoid getting into debt and hurting your credit score.

What are the financial benefits of using a credit card?

Credit cards offer the ability to make purchases and pay later, allowing for flexible cash flow management. They also build credit history, which can improve credit scores and access to better interest rates on loans.

What rewards and cashback options are available with credit cards?

Many credit cards offer rewards programs that provide cashback, points, or miles for purchases made. These can be redeemed for statement credits, merchandise, travel, or other benefits.

How do credit cards offer convenience for payments and purchases?

Credit cards provide a secure and widely accepted method of payment, eliminating the need to carry large amounts of cash. They also offer purchase protection and extended warranties on eligible items.

What is the main purpose of a credit card?

The primary purpose of a credit card is to provide a line of credit that allows cardholders to borrow funds from the issuer to make purchases or obtain cash advances, with the expectation of repaying the borrowed amount plus interest and fees.

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Bajaj Finserv App for All Your Financial Needs and Goals

Trusted by 50 million+ customers in India, Bajaj Finserv App is a one-stop solution for all your financial needs and goals. 

You can use the Bajaj Finserv App to: 

  • Apply for loans online, such as Instant Personal Loan, Home Loan, Business Loan, Gold Loan, and more. 
  • Explore and apply for co-branded credit cards online. 
  • Invest in fixed deposits and mutual funds on the app. 
  • Choose from multiple insurance for your health, motor and even pocket insurance, from various insurance providers. 
  • Pay and manage your bills and recharges using the BBPS platform. Use Bajaj Pay and Bajaj Wallet for quick and simple money transfers and transactions. 
  • Apply for Insta EMI Card and get a pre-approved limit on the app. Explore over 1 million products on the app that can be purchased from a partner store on No Cost EMIs. 
  • Shop from over 100+ brand partners that offer a diverse range of products and services.
  • Use specialised tools like EMI calculators, SIP Calculators 
  • Check your credit score, download loan statements and even get quick customer support—all on the app.

Download the Bajaj Finserv App today and experience the convenience of managing your finances on one app.

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