Though similar surveys have not yet been conducted this year, data from July of 2019 indicates more than 50 million credit card users in India. This data represented a rise of roughly 10 million credit card users in a year, indicating a rising interest of the Indian populace in availing the benefits of such lines of credit.
Interestingly, with credit cards in India being offered by various financial institutions, it can be quite difficult for potential users to choose their right option. While there are quite a few credit cards that offer favorable terms and features, choosing the best one depends on numerous factors, including personal spending habits. Discussed below in detail, potential applicants of this line of credit should compare these following features while choosing their credit card.
Emergency loan options
While every credit card allows the basic features of online and offline shopping, a vital point of comparison is that of emergency loans. Select credit card issuers offer the option to avail an emergency loan with a minimal processing fee. Typically approved for 90 days, these loans are interest-free. Usually, credit card issuers offer their customers an option to activate this feature online, thereby making it very prompt.
Option for cash withdrawal
Very few credit cards in India offer the option to withdraw cash money from ATMs for emergency purposes. While issuers usually levy a processing fee for this feature, there are no additional charges or interests applicable to these withdrawals. Borrowers simply have to repay this credited amount within 50 days of withdrawal to avoid any penalty charges.
Every credit card offers reward points that can be accumulated and redeemed for diverse items like gifts, cashback, etc. While choosing a credit card, it is vital for users to note reward points related norms while also checking every benefit offered. Users should learn of the things to do with their credit card reward points, while regularly also keeping an eye on its changing terms and conditions.
Security is a vital aspect of any financial tool, and credit cards are no exception. While financial institutions generally provide robust security to every card, it is also necessary for customers to select an option that has some insurance coverage in the event of identity theft. Furthermore, potential users should also learn of different ways to protect their credit cards from being hacked to enhance its safety.
Usually, credit cards in India offer various additional benefits like discounts and rebates on the use of these cards at partner stores. Consequently, it is advisable for potential applicants to check partner stores and available offers to coincide the same with their usual purchase preferences. This can be especially financially beneficial with regular purchases being at reduced prices.
Checking eligibility criteria and documents requirements help an applicant choose their convenient option. Most financial institutions offer to earn individuals these cards, though there are some finer eligibility criteria too.
With minimal requirements ensuring fast approval, credit cards in India like the Bajaj Finserv RBL Bank SuperCard only require KYC documents along with PAN, financial, and employment details.
The financial institution also provides pre-approved offers, making this application procedure convenient and prompt for users. Such offers are provided on many financial products like personal loans, business loans, etc. You can easily check your pre-approved offer by providing your name and phone number.
Any individual considering to apply for a credit card should also make it a point to check and clear their bills on time. Failing to clear credit card bills to lead to late fees on one hand, while also impacting a borrower’s credit score. This can be detrimental for any future application of a line of credit. In case an individual faces a financial crisis, he/she should check various credit card payment offers and at least clear the minimum due to avoid penalty charges.