Top 7 Reasons to Apply for Credit Cards
Credit cards are considered the best financial instruments among millennials to make lump-sum purchases hassle-free. The cardholders can make transactions from a specific credit limit in a month and repays it to banks or financial institutions with interest at the end of the month.
There are various types of credit cards launched by banks and financial institutions. People can apply for a credit card online that caters to their goals and needs. Credit cards are designed to serve different interests of the customer, and therefore the credit card benefits also vary with every customer, however, there are some credit card benefits that every credit cardholder avails of irrespective of the card category.
7 Reasons to Apply for Credit Cards
RBL bank offers a wide range of credit cards with exclusive perks and benefits customisable according to the needs and budget of the cardholder. These exclusive credit card benefits are enjoyed by specific cardholders in different credit card categories, however, there are some common credit card benefits that every RBL credit card customer enjoys –
- EMI Facility – Banks and financial institutions offer the facility to make lump-sum purchases via their credit cards. The cardholders can convert a lump-sum amount into monthly instalments and repay it to the bank or financial institution with interest. The cardholders can select the repayment tenure according to their monthly budget and convenience.
- Instant Loan Facility – To cover emergency expenses that cannot be fulfilled with credit card limits, many banks and financial institutions offer emergency loan facilities to their credit cardholders. The instant loan facility requires minimal paperwork, and the funds are instantly disbursed into the savings account of the credit cardholder, however, the cardholder will not be able to access the credit limit until the loan is settled.
- Cash Withdrawal Feature – A lot of credit card holders are unaware of this credit card benefit. The cardholders can use their credit card to withdraw cash from ATMs just like debit cards. If you need emergency cash, you can use your credit card for cash withdrawal. The cash withdrawal limit on credit cards depends on the credit card category.
- Rewards – Another attractive credit card benefit is that the cardholders earn reward points on every transaction. According to the transaction amount, the bank calculates and awards certain points which are redeemable. These redeemed points are generally in the form of exclusive discounts, vouchers, coupons, etc.
- Perks -Banks and financial institutions offer several perks to their credit cardholders, like complimentary lounge access at airports, movie tickets, etc., as a part of the credit card benefits scheme. The banks and financial institutions also upgrade the services and perks for their regular customers with no defaulter record to make their experience delightful.
- Builds Credit Score -A good track record in the bank or financial institution helps an individual to create a healthy credit score. The credit score is very beneficial for customers who wish to apply for a loan in future. It evaluates the financial standing and repayment capabilities during application review. The consistent use of credit cards with timely payments of bills builds a good credit score.
- Secure Mode of Transaction – To ensure the safety and confidentiality of funds and information, bank and financial institutions use a two-step authentication mode for credit card payments. The payments made by credit cards are duly recorded, and alert notifications on registered contact details are instantly sent to cardholders to avoid fraudulent activities.
- What is the annual fee of a credit card?
The estimated annual fee of a credit card starts from Rs. 500 and can go up to Rs. 3,000, depending upon the norms and policies of the bank.
- What is the minimum amount in a credit card transaction that can be converted into EMI?
The minimum transaction amount that can be converted into EMI is Rs. 2,500 in a credit card transaction.
- What is the documentation required for an online credit card application?
To apply for a credit card online, the applicant will need a passport-size photo, Id proof, address proof and income proof (including salary slips and bank statements).
- Can I apply for more than two credit cards online?
An individual can apply for more than two credit cards online if they qualify for all the eligibility parameters mentioned by the bank or financial institution.
- What is the cash withdrawal limit on a credit card?
The cash withdrawal limit on a credit card depends upon the credit card category and the norms and policies of the bank. Generally, banks or financial institutions allow only 20% – 40% amount of the credit limit to the cardholders.