{"id":1319,"date":"2019-12-16T11:13:53","date_gmt":"2019-12-16T05:43:53","guid":{"rendered":"http:\/\/blog.budwisefunds.com\/?p=1319"},"modified":"2020-12-07T18:51:52","modified_gmt":"2020-12-07T18:51:52","slug":"credit-card-should-i-apply-for-a-credit-card","status":"publish","type":"post","link":"https:\/\/budwisefunds.com\/blog\/credit-card-should-i-apply-for-a-credit-card\/","title":{"rendered":"Credit Card &#8211; Should I apply for a credit card?"},"content":{"rendered":"\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">Most of the individuals consider credit card as a taboo. They think that it might ruin their lives, or can put them in a debt trap and so on.<\/span><\/p>\r\n<p><span style=\"font-size: 24px;\"><strong>Further Reading: <a href=\"https:\/\/www.icicibank.com\/card\/credit-cards\/credit-card.page\" target=\"_blank\" rel=\"noopener noreferrer\">ICICI Bank<\/a><\/strong><\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">Most of you must have heard financial planners advising people to stay away from credit cards since individuals tend to use their credit cards recklessly in the beginning and then regret later on when they become incapable of repaying their credit card bills.<\/span><\/p>\r\n<p><script async=\"\" src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script> <ins class=\"adsbygoogle\" style=\"display: block; text-align: center;\" data-ad-layout=\"in-article\" data-ad-format=\"fluid\" data-ad-client=\"ca-pub-6495755798120621\" data-ad-slot=\"6499025866\"><\/ins> <script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">Credit cards are basically a personal unsecured loan that comes with a high rate of interest. Interest rates could be as high as 4% per month which effectively turns out to be whooping 48% p.a. Hence, if you don\u2019t repay your credit card bills then you would only be welcoming miseries for yourself.<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">But there are numerous benefits of having a credit card if one uses them wisely. These benefits have been discussed one by one below: &#8211;<\/span><\/p>\r\n<h2><span style=\"font-size: 20px; color: #000000;\"><strong>1.) Interest-free credit period\u00a0<\/strong><\/span><\/h2>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">Credit cardholders can avail an interest-free period of up to 20-50 days. What this means is that a purchase made today will become due for payment, only after a certain period of time. For example, you have a credit card in which the statement is generated on 15th of every month. <\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">So if the statement is generated on 15th October then the billing cycle would be from 16th September to 15th October but the payment will become due somewhere around 1st November or even later depending on the policies of the credit card company. So a purchase made by you on 16th September is payable by 1st November which translates into almost 46 days of interest-free credit.<\/span><\/p>\r\n<h2><span style=\"font-size: 20px; color: #000000;\"><strong>2.) Rewards<\/strong><\/span><\/h2>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">Credit cards reward you for every penny you spend. The rewards are generally given in three forms \u2013 cash, points, and inter-miles. Credit card companies also tie-up with other companies in order to provide exclusive benefits to the cardholders. <\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">For example, Jet Privilege HDFC Bank Signature\/World credit card rewards its customers with 6 inter miles for every \u20b9150 spent on retail expenses. These inter-miles can be redeemed for subsequent flight bookings, hotel bookings, fuel purchases, etc.<\/span><\/p>\r\n<h2><span style=\"font-size: 20px; color: #000000;\"><strong>3.) Cashbacks<\/strong><\/span><\/h2>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">There are multiple offers on online e-commerce websites which are only applicable on shopping through credit cards. For example, Amazon Pay ICICI Bank credit card is a tie-up between Amazon and ICICI Bank which gives unlimited cashback up to 5% on every purchase on Amazon and 1% on all other payments.<\/span><\/p>\r\n<h3><span style=\"font-size: 20px; color: #000000;\"><strong>4.) No cost EMI on Credit Card<\/strong><\/span><\/h3>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">With credit cards you don\u2019t have to pay for your purchases in full as you can avail no-cost EMI on your online as well as offline purchases. RBI has banned the 0% EMI scheme which was earlier used by the sellers for boosting their sales. No cost EMI is different in the sense that the interest part is borne by the seller himself. But there is a catch that GST applicable on the interest is to be borne by the cardholder himself.<\/span><\/p>\r\n<p><span style=\"font-size: 24px;\"><strong>Also Read: <a href=\"https:\/\/budwisefunds.com\/blog\/eight-golden-rules-for-investments-and-goal-planning\/\" rel=\"bookmark\">Eight golden rules for investments and goal planning<\/a><\/strong><\/span><\/p>\r\n<p><span style=\"font-size: 20px;\"><strong><span style=\"color: #000000;\">5.) Cash on-call\/Loan on call With Credit Card<\/span><\/strong><\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">With credit cards, you also have the option of withdrawing cash from the ATMs (this facility may or may not be available on all cards). However, such cash withdrawals are subject to upfront charges which you must look at before withdrawing. Not only this, some credit card companies may offer you cash loans\/personal loans at lower interest rates based on your credit history.<\/span><\/p>\r\n<h3><span style=\"font-size: 20px; color: #000000;\"><strong>6.) Zero Liability<\/strong><\/span><\/h3>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">All your transactions made by credit cards are secured. Moreover, in case of any unauthorized transaction, you just have to report any fraudulent transaction made from your credit card as soon as possible and prove that you are nowhere related to that transaction like for example, you possess your card, you haven\u2019t shared PIN or CVV of the card with anybody, etc.\u00a0 In case you are able to prove it then the credit card company will bear that whole amount themselves.<\/span><\/p>\r\n<p><script async=\"\" src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script> <ins class=\"adsbygoogle\" style=\"display: block; text-align: center;\" data-ad-layout=\"in-article\" data-ad-format=\"fluid\" data-ad-client=\"ca-pub-6495755798120621\" data-ad-slot=\"6499025866\"><\/ins> <script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><\/p>\r\n<h3><span style=\"font-size: 20px; color: #000000;\"><strong>7.) Special benefits (Lounge Access and other benefits)<\/strong><\/span><\/h3>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">Cardholders also get complimentary Priority Pass Membership for preferential access to lounges across the world. Premium cards like HDFC Diners Black credit card give complimentary annual memberships of Amazon Prime, Club Marriot, Zomato Gold, etc.<\/span><\/p>\r\n<h3><span style=\"font-size: 20px; color: #000000;\"><strong>8.) Annual fee waiver and Credit Card<\/strong><\/span><\/h3>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\">Though there are some credit cards which can be issued to you without any annual or renewal fee. Some credit cards waive off this fee when you spend a certain amount in the year prior to the renewal year.<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-size: 20px; color: #000000;\"> For example, simply click SBI card reverses subsequent year annual fee upon spending Rs. 1 lac a year.<\/span><\/p>\r\n<p><span style=\"font-size: 24px;\"><strong>Further Reading: <a href=\"https:\/\/www.mutualfundssahihai.com\/en\/how-do-i-choose-mutual-fund\" target=\"_blank\" rel=\"noopener noreferrer\">Mutual Fund Sahi Hai<\/a><\/strong><\/span><\/p>\r\n<p><img loading=\"lazy\" id=\"siafacc\" class=\"size-medium wp-image-562 aligncenter\" src=\"https:\/\/budwisefunds.com\/blog\/wp-content\/uploads\/2019\/08\/download-pdf-button-1-300x88.png\" alt=\"\" width=\"300\" height=\"88\" srcset=\"https:\/\/budwisefunds.com\/blog\/wp-content\/uploads\/2019\/08\/download-pdf-button-1-300x88.png 300w, https:\/\/budwisefunds.com\/blog\/wp-content\/uploads\/2019\/08\/download-pdf-button-1-1024x299.png 1024w, https:\/\/budwisefunds.com\/blog\/wp-content\/uploads\/2019\/08\/download-pdf-button-1-768x224.png 768w, https:\/\/budwisefunds.com\/blog\/wp-content\/uploads\/2019\/08\/download-pdf-button-1-1536x449.png 1536w, https:\/\/budwisefunds.com\/blog\/wp-content\/uploads\/2019\/08\/download-pdf-button-1-2048x598.png 2048w, https:\/\/budwisefunds.com\/blog\/wp-content\/uploads\/2019\/08\/download-pdf-button-1-1200x350.png 1200w, https:\/\/budwisefunds.com\/blog\/wp-content\/uploads\/2019\/08\/download-pdf-button-1-1980x578.png 1980w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/p>\r\n","protected":false},"excerpt":{"rendered":"<p>Most of the individuals consider credit card as a taboo. They think that it might ruin their lives, or can put them in a debt trap and so on. Further&hellip; <\/p>\n","protected":false},"author":1,"featured_media":2097,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[10],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Credit Card - Should I apply for a credit card? | Budwisefunds Blog<\/title>\n<meta name=\"description\" content=\"Most of the individuals consider credit card as a taboo. 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