Credit cards are important financial tools that make spending easier and more secure. They remove the need to carry cash and simplify both online and in-store payments. Knowing what are the benefits of a credit card helps you enjoy purchases and manage your everyday as well as bug expenses without worrying about your next salary.
Since it is a useful option for all lifestyle needs, they ar1227e divided into multiple categories, offering exclusive benefits. In this guide, you’ll learn about the benefits of credit cards and how to apply for them in simple steps.
Understand the Credit Cards
A credit card is a plastic or metal card issued by a financial institution to select people. You can use the money from it to pay your bills, make purchases and the convenience of EMI payments. This way, you can make purchases instantly and repay later when you have funds available.
Only if you are unable to pay within the stipulated timeline will you repay the borrowed amount along with their interest and additional fees. A credit card may be entirely repaid before the given date for billing or on instalments over time.
Credit Cards Types
There are several types of credit cards, each offering unique benefits tailored to different spending habits and lifestyles. The following options can help you choose the right card to maximise rewards and savings.
| Type of credit card | Credit card Name | Features and Benefits |
| Cashback Credit Cards | Axis Bank ACE credit cardCashback SBI cardAirtel Axis Bank credit card | These types of cards offer a percentage of your spending back as cashback. |
| Lifetime Free Credit Cards | IDFC FIRST Select credit card One Card FD Credit Card | No annual fee, cost-effective, and often offers cashback or reward points on all purchases. |
| Co-Branded Credit Cards | SNAPDEAL Bank of Baroda credit cardOne Credit Card | Issued in partnership with retailers, providing exclusive rewards and discounts at specific stores. |
| Rewards Point Credit cards | RBL Bank ShopRite credit cardSBI SimplySAVE credit cardOne Credit Card | You can earn reward points on spending and redeem for cash |
| Travel Credit Cards | Scapia Federal Bank credit cardNiyo Global International Travel card | These cards offer rewards such as points for travel bookings and discounts on travel-related expenses, which are ideal for frequent travellers. |
| Premium Credit Cards | SBI Elite credit cardAxis Bank Magnus credit card | It offers luxury benefits like airport lounge access and dining discounts |
What are the Benefits of Credit Cards?
A credit card makes your life more secure and financial management easy as it offers many benefits. Here are some of the benefits of credit cards:
- Convenience
Easy payments with a simple swipe; link to a digital wallet for even quicker transactions
- Recurring Payments
You can set payments on auto for bills like phone, electricity, and gas to avoid late fees.
- Recharges and Tickets
Pay for online services like flight tickets and mobile recharges easily.
- Interest-free Credit
Enjoy shopping on credit with interest-free purchases for a grace period of up to 50 days, depending on the issuer.
- Rewards
Earn points on every purchase and redeem them for gifts or vouchers.
- Cashbacks and Discounts
Get discounts and cashback on selected shopping and fuel purchases.
- Travel in Style
You get airport lounge access, priority check-ins at the airport, and many more travel perks.
- Expense Tracker
Track your spending with detailed monthly statements.
- Safer
More secure than carrying cash, with the ability to replace a lost card quickly.
- Credit Score
Improve your score, allowing you to get easy approval on loans or credit cards in future.
How to Apply for a Credit Cards
Ahead of applying, you check the eligibility criteria. If you fit the criteria, then you can follow these simple steps to get a credit card:
Step 1. Choose a Credit Card
Select a credit card that best suits your needs
Step 2. Read the Documents
Collect all necessary documents like ID proof, address proof, and income details
Step 3. Fill Out the Application Form
Complete the online application form with accurate information
Step 4. Complete Digital KYC
Verify your identity through the digital KYC process
Step 5. Submit the Form and Documents
Upload the completed form along with the required documents
Step 6. Get Approval
Wait for your credit card application to be approved
Step 7. Receive Your Credit Card Kit
You’ll receive your credit card after being approved
Consider the Things Before Applying for a Credit Card
Before applying for a credit card, you must consider some of the following things to ensure that you are choosing the right option for long-term use:
- Assess Your Spending Habits
Make a list of all the different purchases for which you may use your card, such as groceries, dining, and travel. Choose a credit card that offers rewards for them.
- Credit Limit
It is the maximum amount that you can spend on a credit card. The issuer sets this based on your income and credit history. So choose the card with the highest limit for maximum funds availability.
- Credit Card Fees
Learn about different fees applicable and their amount beforehand, including annual fees, late fees, and other fees. Compare these fees across different cards to choose one with reasonable charges.
- Credit Card Rewards and Benefits
Credit cards offer rewards like cashback and reward points. Learn these rewards and benefits while choosing the card for maximum benefits on your frequent purchases.
- Late Payment Charges
This is the charge imposed when you fail to make payments on the due date. While you must try to make payment before the due date, choosing the issuer with the lowest cost can help you save in an emergency.
- Regularly Monitor Statements
Keep checking your monthly statements for any unauthorised transactions. If you find any such transaction, inform your card issuer immediately. It also helps you manage your budget better.
Credit cards offer a range of benefits, from cash flow to a plethora of offers and deals. One such card that offers a seamless experience is the One Credit Card. It is one of India’s top metal credit cards, known for its transparency, simplicity, and user control.
With no joining or annual fees, it ensures a hassle-free experience. The powerful OneCard App allows you to manage transaction limits, set usage preferences, and make contactless payments with ease. Enjoy 5X rewards on your top spending categories, with points credited instantly and no expiration. Plus, the sleek metal design adds a premium touch to your wallet.
Whether you’re shopping, travelling, or managing EMIs, One Card provides unmatched benefits. Even if you don’t have a long credit history, you can apply for the One Card FD Credit Card to build one and improve your credit score. Apply for the One Credit Card today and enjoy a superior credit card experience with complete control at your fingertips!
