Save More by Choosing the Right Credit Card
Choosing the Right Credit Card
The credit card industry in India has witnessed rapid expansion in recent times and is expected to grow at a CAGR of more than 25% in the next five years.
This growth can be attributed to the fact that credit cards not only serve as useful payment tools but also come with specialized benefits in the form of reward points, cash back, and more. However, to maximize savings on credit card usage, a cardholder should choose the perfect card variant. For instance, frequent travelers should select a card that offers optimal saving opportunities and reward point-earning facilities on flight tickets or hotel bookings. This is one of the crucial aspects to check before initiating the bajaj finserv card process.
Thus, assessing how to pick the most suitable card is essential. Following are a few ways you can maximize your savings on credit card expenses.
- Study your expenditure
Before undertaking the Bajaj card applications process, assess how you would use such a card after acquiring it. For instance, many car or bike owners tend to use such cards to finance their refueling expenses. The best way to combat high fuel prices with your credit card is to opt for one, which offers substantial cashback or rewards across fuelling stations.
This way, every time you use this card for refueling, you would earn accelerated rewards. You can then redeem these points to ensure considerable savings.
- Utilize reward points while they are valid
Most card users tend to forget that reward points come with a specific validity. While most are busy accumulating such points, they fail to utilize them within their deadline, thereby wasting the adjoining benefits. Always keep an eye on the validity of reward points and make sure to redeem them on time. Also, check with your card provider regarding how to redeem your credit card reward points.
- Choose cards that offer reward points as a welcome bonus
Some financial institutions provide reward points as a joining gift to new credit card users. For instance, the RBL credit card comes with an opportunity to earn almost 20000 reward points. You should look for these offers to maximize your savings.
- Check promotional offers
Credit card issuing companies tend to run promotional campaigns and offers, providing considerable discounts on the purchase of products from certain outlets or brands. If such an offer is available on your card, ensure you utilize it. During these times, you may be able to buy products at a fraction of their original price, thanks to your credit card.
- Pick a card with an interest-free cash withdrawal facility
Most credit card companies discourage users from withdrawing cash using these cards. A hefty interest charge is applied to this withdrawn amount. However, in some cases, NBFCs may allow one to withdraw emergency cash without levying interest immediately.
For instance, the Bajaj Finserv RBL Bank SuperCard comes with an interest-free period of 50 days. RBL credit card users who withdraw cash and repay the same within this 50-day period do not need to bear any additional interest on the borrowed amount. Thus, such cards allow you to save on interest payments.
Bajaj Finserv also provides pre-approved offers to simplify and accelerate the credit card availing process. These offers are available on a range of financial products, including personal loans, business loans, and more. You can check your pre-approved offer by submitting your name and phone number.
These are just some of the ways in which one can ensure optimal savings on his/her credit card expenses. Nevertheless, one must also keep his/her credit utilization under check to avoid the substantial burden. Ideally, this utilization ratio should be limited to 40%. Otherwise, paying the monthly bill for your card can become too challenging.
Therefore, if your credit limit is Rs.50000, ensure that you do not expend more than Rs.20000 in a month through your credit card. Implementing these measures while initiating the Bajaj card application process, or while using it can help cut back substantially on the user’s total expenses.