The credit card usage has risen by nearly 27% with around 49 million users in August 2019 as reported by RBI. The ease of payments and attractive interest rates have added to the reasons behind such an upsurge.
Various financial institutions issue different types of credit card users, which are specific in their usage and offer suitable benefits as well. For instance, if you travel more, you can opt for a travel credit card or go for a shopping card that will offer you with reward points on spending a specific amount.
With a credit card in hand, you are likely to have access to adequate finance and thus not restrict yourself to spend during emergencies. The credit cards come with a specified credit limit, which is decided by the issuer along with an interest rate applicable on bill payments after the due date. These limits are based on the creditworthiness of a customer, their repayment capability and other factors.
Credit cards for specific purposes –
The different types of credit cards ease the usage for people as issuers also offer them with a lot of benefits such as rewards and discounts on specific spend. These benefits are the primary reasons why credit cards are better than debit cards.
The various types of cards you can opt for are as follows:
- Travel credit card
Travel credit cards come with attractive credit card interest rates besides some other essential financial benefits such as cashbacks, gift vouchers, and reward points on regular travel spend. You can also enjoy joining reward points as a welcome gift.
The primary advantage of these credit cards is travel miles. Travel miles are a type of reward points which can be redeemed to avail discounts on air tickets. Some cards also provide the option to convert reward points to travel miles.
Travel credit cards also provide complimentary airport lounge access. For example, the Bajaj Finserv RBL Bank World Plus SuperCard provides 8 such accesses in one year.
The Bajaj Finserv RBL Bank SuperCard combines the benefits of 4 cards in one and brings several industry-first features.
The company brings you pre-approved offers on credit cards to make the overall application process convenient and faster. These offers are also available on other financial products such as personal loans, business loans, home loans, etc. You can take a look at your pre-approved offer by providing a couple of details like your name and contact number.
- Shopping credit cards
When you pay for your shopping using this card, you receive offers, discounts, cashback, and gift vouchers from reputed online and offline retailers. With competitive credit card interest rates, these come as an exclusive option for people who like to shop, especially during the festive season. Furthermore, you can also earn cashbacks on other spends like grocery purchases made with this card every month.
- Balance transfer credit cards
Among various types of credit card, it is a significant card that allows you to transfer your outstanding balance to this particular card, so that you can easily pay out your balances at a lower rate of interest. Having this card can be beneficial as it will help you reduce the financial stress largely.
Interest rates offered on credit cards
Owing to the ever-increasing competition among the credit card issuers, companies today offer competitive interest rates. It is essential to compare all the credit card interest rates before you apply. There are also ways to reduce your credit card interest rate and save money.
At all times, you must exercise paying your bill on time even if the interest rates are affordable.
To conclude, credit cards help you meet your spending requirements conveniently during times of need. Several types of credit card also offer the benefit of cash withdrawal from ATMs during emergencies. Some also enable you to avail a personal loan against the available credit limit at zero interest for a particular period.
