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 one and makes your purchases more affordable and convenient.
If you wish to apply for one, here are a few credit card advantages and disadvantages to keep in mind.
Advantages of a credit card
- 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.
- 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.
- 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 you for a loan or a new credit card with a higher credit limit easily in the future.
- 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
- 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.
- 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.