A credit card allows account holders to borrow money from a lender to make purchases and later pay back the funds with interest. Moreover, lending institutions and NBFCs provides various offers and benefits on credit cards which make them one of the most preferred mode of alternate currency in India.
There are various types of credit cards, used for different purpose. The shopping credit cards offer some of the unique benefits such as reward points, easy cash withdrawals, etc.
According to the Reserve Bank of India (RBI), the total transaction value on credit cards has significantly gone up between the years 2018-19. Credit cardholders were seen to spend around Rs. 6 Lakh using their credit cards which was 30% higher than the amount spent between 2017-18 financial years.
Benefits of using a credit card
Easy cash withdrawal from ATMs
Whenever a cardholder withdraws cash from ATM they are required to pay interest on the withdrawn amount. Moreover, a transaction fee is levied every time the cardholder uses a credit card at ATMs.
However, the best credit cards in India offer zero interest ATM cash withdrawal facility for a limited period. This period can extend for up to 50 days. Also, if the beneficiary repays the amount within this period, no interest is charged except the processing fee only.
Repayment of large scale purchases with shopping credit card is extremely convenient. The cardholder can repay the borrowed amount in 3 easy EMIs. The applicant will be charged with only a flat processing fee.
Avail special benefits and rewards
When a transaction is made with the shopping credit card, a beneficiary can earn up to 20,000 reward points. The rewards earned will be credited to the cardholder’s account at the end of each month. Moreover, these rewards can be used to avail discounts, gift vouchers, movie tickets, etc.
Avail cashback offers
When a cardholder makes down payment at the time of a product purchase, he/she can get up to 5% cashback, up to a maximum of Rs. 1,000. The cashback earned is credited to the account within 45 days after the transaction. Such cashback offers are available at selected stores that have tie-up with the financial institution.
Pay with reward points
Reward points are awarded when you make a purchase using the shopping credit card. If you know how to redeem your credit card reward points you can make down payment at partner stores. The cardholder will require minimum 5000 reward points to avail of this benefit.
Save big with credit cards
Certain credit card companies allow provision to save up to Rs. 5,000 per annum with shopping credit cards in India. These unique features are available only on a handful of cards in India, like the Bajaj Finserv RBL Bank SuperCard.
Make secure payments
You can make secured payments with shopping credit cards. These cards are loaded with features such as ‘in-hand security’ and zero-fraud liability cover’ to avoid cybercrime. Additionally, you are asked to enter the CVV code when making an online transaction which adds another layer of security. Your credit card will remain secured if you follow the recommended guide of how to use a credit card wisely.
What are the eligibility criteria for availing a credit card?
Know how to apply for a credit card online by meeting the eligibility criteria –
- The applicant must be between the ages of 25 to 65 years.
- The minimum credit score of the applicant must be 750.
- The candidate must be a self-employed individual or a salaried employee.
- The minimum income of the applicant must be Rs. 3 Lakh per annum.
Now you can go online shopping and enjoy these exciting offers at the time of purchase. Also make sure your meet the eligibility criteria to apply for a credit card.