A credit card can be a great friend to you if used responsibly. It’s a digital tool that is relatively new to India, but these days, Indians are succumbing to its use, largely compelled by the non-contact payment that it affords. With online payments on the rise, paying through credit cards has become the popular way to go about transacting on e-commerce platforms. Now, even the average salaried Indian can buy the big-ticket items he/she wants by means of a credit card. These cards may not be as famous in India as they are in the West, but nowadays, many salaried Indians use at least one, with high-net-worth individuals using up to two or more.
The Reserve Bank of India has, since the past decade, tried to enthuse the nation to explore credit card use, and because of the Covid-19 pandemic, Indians have been encouraged to use digital payments, noting credit card benefits. The Reserve Bank of India had reported, in September 2020, that there were 5.9 crore credit cards outstanding to be collected by new cardholders who were refraining from doing so because of the pandemic. This means there were a huge amount of applicants for these cards in the first place. In the first half of the year 2020, SBI alone had issued 4.6 lakh cards, and many were to women, showing a new demographic where confidence in spending was concerned.
New credit cards
In the first half of 2020, many private sector banks had issued credit cards to individuals. ICICI Bank had issued more than 1.5 lakh cards approximately, and HDFC Bank had issued nearly 5 lakh cards, to name a few. These are large average figures where India is concerned, and imply that more Indians are less apprehensive about the question, “how can I get a credit card?”, and know the answer to it. You can easily get a new credit card through a bank (the one you already have an account in) or any other, provided you show a good credit score by proving your financial strength (in terms of salary certificates and earning capacity).
Credit cards are also available through financial institutions like Bajaj Finserv, with reputable service standards. Applying for a credit card in physical form, by actually submitting some required documents to the issuing authority is one way to apply. Alternately, some banks and credit card organizations have the facility for online application. You will still have to submit some mandatory documents (like your Aadhaar and PAN cards as ID and address proof, as well proof of income) physically to the issuing authority.
Why you should get a credit card
Credit card benefits are obvious to some people, but they are afraid to take the leap. Clearly, there are more pros and hardly any cons, unless you don’t pay your bills regularly. Here are the advantages:
- Credit cards afford increased purchasing power as well as a convenience (not having to carry cash around).
- Credit cards let you buy presently and pay later on, giving you credit lines of up to 45 days to pay your bills.
- Credit cards are not tied to your bank accounts (like a debit card).
- Credit cards give you the opportunity to buy flagship and luxury items on EMIs, so affordability isn’t difficult.
- Credit cards are cash cards (you can use them at ATMs) and they offer many rewards/discounts and cashback on purchases you make with them.
One of the best
One of the credit cards that comes with the advantages of a multitude of features is the Bajaj Finserv RBL Bank SuperCard. This card gives you the benefits of an ATM card, giving you 50 days of withdrawals at zero charges. Additionally, the card comes with rewards on purchases you make at partner retailers and e-commerce platforms, where you can make cashless payments, getting loans of up to 90 days if you choose EMI options. You get 5% cashback on your first down payment as well. Unlike many other cards, this card offers low-interest rates of only 1.16% per month, and you can apply for the card online with zero hassles.