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The number of outstanding credit cards grew by 24.87% in December 2018 compared to the previous year. Credit cards have revamped the financial sector with the plethora of benefits it comes with.
Individuals at the age of 25 witness a fast-paced modern life. Credit cards are a useful financial product to provide instant funds that they may require. Also, it comes with exclusive deals and perks every time a cardholder makes a payment. Borrowers should check the perks it offers when they apply for credit card.
The various benefits a cardholder avail with a credit card are mentioned below-
- It makes expensive transactions affordable
As a 25 year old, most individuals are relatively new in their careers. It can be challenging to make a costly purchase due to financial constraints. They can use a credit card for such to fund the total cost in easy EMIs.
- It provides reward points
Credit cards offer reward points against a specific transaction. Individuals can use these points to avail discounts on their next purchases. The reward points can vary depending on the nature of the transaction an individual makes. Cardholders should enquire their issuer before they apply for credit card to ensure that they avail the maximum benefits.
Along with reward points, individuals can also avail cash backs on certain transactions. For instance, there are various cards that offer cashbacks on fuel purchases. Furthermore, there are multiple benefits which an individual can avail by making transactions with a preferred partner of the card issuer.
There are some credit cards which offers frequent-flyer miles for individuals booking airline tickets with specific airline companies.
- It provides a grace period to repay the amount
Credit cards usually have a period of 30 days and an additional 15 days for the individuals to repay their debt. The interest rate and the other penalty fees will be charged only if a borrower fails to pay the bill within this grace period. It is one of the convenient ways to repay your credit card debt.
- It provides ATM withdrawal facility
Cardholders can withdraw cash from ATMs with their credit cards similarly as a debit card. Some card issuers charge a minimum transaction fee and interest rate for such withdrawals.
The Bajaj Finserv Credit Card offers zero interest rate on ATM withdrawals up to 50 days, which makes it the best credit card in India. Some of the other benefits they provide include-
- Personal loans with zero interest up to 90 days.
- 20,000 reward points as a joining bonus.
- Zero-fraud liability cover.
They also provide pre-approved offers on such credits to simplify the process to avail them and to make it faster. Pre-approved offers are valid on a wide range of financial products and services including home loans, personal loans, business loans and more. You can check your pre-approved offer by sharing some essential details.
- It offers facilities to track expenses
Cardholders can track their due dates, payments and other essential information regarding their credit account online. Some financial institutions have also launched mobile applications so that individuals can fetch the required information with ease. Individuals must check that the card issuer provides such mobile platforms when they apply for a credit card.
- It provides emergency loans
Cardholders can avail an emergency loan against the credit limit of their cards in case of such urgent situations. Top financiers such as Bajaj Finserv offers interest-free personal loans against the unutilised credit limit for up to 90 days. So, borrowers can avail the necessary funds when required by paying only a minimal processing fee.
- It helps to build a credit score
Most of the individuals at 25 do not have any previous credit history. a credit card can help them create a decent enough credit history. Credit cards come with a predetermined credit limit, which ensures that an individual does not overspend. If an individual is aware of how to use a credit card wisely, and they pay off their debt regularly, they can build their credit score quickly over time.
Apart from the points mentioned above, there are a lot of other benefits that make credit cards an ideal tool to fund the expenses for a 25-year-old individual. However, they must check the associated details carefully before they apply to avail the best credit card in India.
