In the years post the 2016 demonetization, cashless transactions have gained rapid popularity in India. So much so that according to the Reserve Bank of India, the country has added more than 10 million new credit cards in circulation between May 2018 and May 2019. This popularity has been further boosted by financial institutions introducing attractive features and benefits on credit cards, allowing users to maximize their value from them. Thus, for potential users asking questions like how to get a credit card, it is crucial to learn how to maximize their benefits from the new card they avail.
Top facts about credit cards in India
- 48.9 million – Total number of credit cards in circulation in India as of May 2019.
- 27% – Total growth in credit card usage from between May 2018 and May 2019.
- Rs. 6 Lakh Crore – Total spending through credit cards in FY 2018-19.
From the data above, it is evident that the popularity of credit cards among Indians have increased manifold in recent years. But often individuals are not well-informed about the various features available on these cards, and consequently do not utilise them to their full potential.
Following is an overview of some factors that can allow users to avail the maximum value from their credit cards.
- Rewards and bonuses
One of the most attractive benefits of utilising credit cards for financial transactions is the reward points individuals can avail on them. These reward programmes are designed in a way to encourage individuals to utilise their credit cards for various financial transactions.
There are several types of reward point schemes that issuers offer on their credit cards. Welcome reward points, regular rewards, high-value purchase rewards are some of the more popular types of this scheme offered by credit card companies. For example, with credit cards like the Bajaj Finserv RBL Bank SuperCard, individuals can earn up to 20,000 as welcome reward points.
Further, Bajaj Finserv also provides pre-approved offers that can make availing credit cards faster and easier. These offers are available on several financial products, including credit cards, home loans, personal loans, etc. You can check your pre-approved offer by providing your name and phone number.
These points accumulated after every financial transaction can be redeemed in lieu of various offers, discounts, and other benefits. For example, merchandise, air miles, gift vouchers, cashback offers etc. are some of the more popular means of redeeming reward points.
It is pertinent for individuals to check the rewards point schemes offered by credit card issuers while seeking answers to how to get a credit card.
- Make payments within the grace period
Grace period refers to the time between the end of a credit card’s bill cycle and its payment due date. Bill payments made during this period do not attract any interest.
Credit card companies are not mandatorily required to provide a grace period for their customers. Nonetheless, most credit card issuing companies in India provide their customers with a grace period ranging between 20 days and 60 days. It is beneficial for individuals to make full payment of their bill amount during this period; otherwise, they will be levied with a high interest on the outstanding amount.
To maximise the value of their credit cards, individuals can look for issuers who provide the highest grace period for their credit card bill payments. This factor is especially important for those who struggle to make timely bill payments. Also, to understand the grace period on their card, individuals should learn how to read their credit card statement correctly.
- Maximising credit limit
Alongside how to get a credit card, one of the most crucial questions that individuals should ask while availing a new card is how to increase their credit limit on it. Having a high credit limit offers several benefits like higher purchasing power and lower risk of surpassing the credit utilisation ratio.
Thus, to increase the credit limit on their cards, individuals can adopt measures like –
- Making regular payments of credit card dues.
- Request a limit increase based on repayment history.
- Increasing security on secured credit cards.
- Applying for an online credit card with a higher limit.
With these few factors in mind, one can maximize the value from their credit cards. It is, however, pertinent for individuals to compare different credit cards offered by various issuers to ensure that they choose the right credit card and avail the maximum benefits from them.
