Should You Get A Credit Card?

Credit cards are becoming a popular choice in our country for making purchases. Some people are even holding multiple credit cards, while some may even suggest you to stick to debit cards or cash so that you avoid debt. If used carefully, credit cards can give you a lot of benefits.

Nowadays, there are various banks offering credit cards with a variety of offerings to suit every lifestyle and spending tendency. However, with the variety of choices available, choosing the right credit card for an individual can be a daunting task.

So, before you buy a credit card you must consider the points given below-:

Do you meet the basic requirements?

In order to get a credit card, you must be above 18 years of age. Apart from that, your income will also decide whether you are eligible for a particular type of card. The minimum income requirement will differ from bank to bank.

Make sure you’re prepared for the responsibility

You must be ready to take the responsibilities that comes with a credit card. It is essential to strike a balance with the minimum account balance and to make payments on time. It is your responsibility to pay your bill and on time to avoid interest charges.

Why you must buy a credit card?

Helps in building your credit score

In order to gain access to loans, you need to have a good credit score. You can build up your credit score through a credit card.

A simple way of building your credit score through a credit card is by using it for payment of monthly utility bills for electricity, gas, water, etc. and paying back the amount to the card issuer in full by the end of the month. This way, you can build your credit score, which will help you in getting loans at a lower interest rate.

No need for carrying cash

It is safer and convenient than carrying cash in your wallet while travelling and shopping. A credit card is one of the simplest and safest ways to pay for anything without worrying about change. Just swipe or scan it, the payment is made.

Earn cashback and travel rewards

Perhaps the best benefit of having a credit card is the ability to earn rewards while using it. The cardholder can earn cashback or reward points that can be used for everything from shopping to free air miles.

Keeps track your expenses

Credit Card statements are a great way to track your expenses every month since it provides you with a detailed account of your expenditure.

Author: Chakraborty

Dr Chakrabarty is the Chief Innovation Officer of IntuiComp TeraScience. Earlier she was Assistant Professor of Delhi University, a QS ranked university in India. Before that she has held research positions in IIT Mumbai, IIT Chennai and IISc Bangalore. She holds 2 patents and over 20 research publications in her name which are highly cited. Her area of research is in smart technologies, integrated devices and communications. She also has a penchant for blogging and is an editor of Business Fundas.