Banks and finance companies like HDFC and Bajaj Finserv have made it easy for Indian consumers to get credit cards. In an effort to promote confidence in potential credit card applicants, the Reserve Bank of India has issued several notifications regarding the safety of credit card use, and its own role to ensure that. The move is to compel more Indians to switch to modes of digital payment and create transparency in financial transactions. In 2020, the Reserve Bank of India issued an announcement to disable certain functions on credit cards, like those for international use.
Furthermore, it stated that users would be able to customize credit card use to suit their needs. For instance, if they were not using the ATM cash withdrawal facility, this would be disabled on the card. Such measures, it was thought, would decrease credit card misuse and fraudulent cases that were so rampant in the previous year. How to use a credit card in the best possible way that a consumer benefits monetarily, as well as in terms of safe use, evades users at times. It’s important to know how to maximize the benefits that a credit card can offer.
Credit Cards for Specific Use Cases
The Government of India has, from time to time, tried to bring technology and convenience to the doorsteps of lower-income groups in an effort to uplift poverty-stricken people, namely small farmers, and students in small towns, who cannot afford higher education. Credit card meaning, for such sections of the majority of Indian people, gains much significance in terms of being able to afford many things that the affluent take for granted. The Indian government has launched a Kisan Credit Card that provides loans of up to Rs. 4 lakhs for farmers, plus gives coverage against mishaps like natural calamities that can affect crop yield. Similarly, the government, in a number of states, has introduced credit cards to aid in student loans.
Correct and Optimal Use of Credit Cards
Credit cards, which are part of government schemes are utilized for a specific purpose, and not for the purchase of any other service or commodity. Credit card meaning takes on different interpretations based on credit cards that are issued by banks and finance companies for specific buying activities, and use of these can substantially increase value for consumers. For instance, ICICI Bank issues the Amazon Pay credit card which is geared towards consumers who prefer shopping on e-commerce portals. They stand to benefit from the use of a credit card like this as it comes tied in with offers when consumers shop with it on Amazon. They may not get these with regular credit cards. They may also stand to get advantageous interest rates on EMIs and more reward points.
Ways to Make Credit Cards Work for You
Here are handy guidelines to use your credit card smartly:
- Pay your bills on time. Your cash limit on your credit card may be high, but if you spend up to it, and find you can’t pay bills later, your credit score will be adversely affected. Never settle for the minimum payment amount. Besides this, credit card companies impose high rates of interest on balances that are outstanding.
- Try not to use your credit card at an ATM. Credit cards may let you withdraw cash at ATMs, but these incur fees and charges.
- Co-branded cards may be a con if you don’t use them optimally. For any co-branded card (a card for specific use like a fuel brand card) to be useful to you, you need to consume that particular brand sufficiently. Opt for a card that has advantages for your lifestyle requirements.
- Be attentive to fees like joining fees, renewal fees, and annual fees and charges.
- Never hand out your credit card details to anyone, not even a bank official. Keep your PIN secured. It’s a mistake to note it down; memorizing it is a good idea.
- Examine your credit card bill with the utmost scrutiny. You may discover some unauthorized charges.
The Right Card for You
The Bajaj Finserv RBL Bank SuperCard is the right card for you, offering multiple uses. Use it as a hassle-free EMI option, and take loans for up to 90 days with it, at low rates of 1.16% interest. You can also use it at ATMs, free of cost for 50 days.