5 Benefits of Saying Yes to Start Using IDFC Credit Card Right Away
Despite their growing acceptance over time, a lot of people still prefer to avoid using credit cards as a form of payment. Despite the fact that credit cards have many benefits, many people choose not to use them because of stigmas, preconceptions, or biassed opinions.
If this applies to you, continue reading because we'll discuss a number of benefits of credit cards that will persuade you to apply for one right away.
Building a solid credit history can be facilitated by using credit cards responsibly
Because idfc millennia credit card transactions are viewed as being the same as borrowing money, paying off your credit card debt has the same effect on your credit score as paying off other types of debt. In contrast to borrowing money, using credit cards does not result in interest fees as long as the balance is paid in full by the deadline indicated on the credit card statement. The simplest and most practical way to improve your credit score is to use credit cards. Make sure your IDFC Credit Card balances are paid off completely and on time, and that your credit utilisation ratio is between 30 and 40% if you want to improve your credit score. Having a good credit score will not only increase your eligibility but also enable you to get loans at lower interest rates as lenders base loan rates increasingly on the borrower's credit profile.
Through the use of reward points, cash back, and other incentives, you can lower your overall transaction costs
Numerous advantages are offered with credit card purchases in an effort to encourage frequent use of the cards. You can give these benefits as gifts using gift cards, coupons, savings, and reward points, among other options. Applying for a credit card is a smart idea, and you should pick one with features and rewards that suit your spending habits and way of life. It is necessary to maximise the advantages that already exist. People who must spend a lot of money on travel-related expenses, such as lodging, meals, and airfare, may want to consider using a travel credit card to help them cover their costs.
In addition to the annual and renewal fees, take into account the rewards points, discounts, cash back, gift cards, and other advantages. All of these can assist you by reducing your overall transaction costs when you choose and apply for a idfc credit card. Choose a credit card whose benefits outweigh any associated costs. Keep in mind that most credit card reward points have a time limit after which they can no longer be used.
A time frame in which nothing of interest happens
The interest-free period is the period of time between the date of the credit card transaction and the payment due date. Your credit card company will stop charging interest on your transactions if you pay off the entire balance on your card by the due date. Depending on the circumstances and the dates of your transactions, this period may last anywhere between 18 and 55 days. To make the most of your interest period, which is the time your idfc millennia credit card spends at the beginning of your billing cycle, you should be aware of the following: If you have several credit cards, spread out your purchases so that the majority of them occur at the start of each card's billing cycle.
The ability to use EMIs to break up large expenses into manageable monthly payments
We frequently have to say "no" to major purchases like a phone, television, or laptop because we don't have the money or credit. This particular objective is what the credit card EMI option aims to achieve. By spreading out the cost of significant purchases over time with a credit card, you can prevent going over your spending limit. You can simplify debt repayment by choosing the simple EMI option, which entails converting transactions that exceed a threshold limit into EMIs. You can choose a repayment period of three to forty-eight months with interest rates as low as 1.5 percent per month. According to the credit card companies, you can decide to pay off the entire balance on your IDFC Credit Card over a period of up to 60 months.
It should be noted that the majority of credit card issuers have partnered with a number of merchants in order to offer customers the option of free EMI, which enables them to defer paying interest on purchases made with their credit cards for a period of three to twelve months. Check the free emi offers on the cards with various merchants and retailers before deciding whether to apply for one.
Loans with instant pre-approval for those with urgent financial needs
Current users of IDFC Credit Card who have a history of making on-time debt payments are frequently offered pre-approved loans by card issuers. These pre-approved loans don't require any documentation and are frequently disbursed immediately or shortly after approval. As a result, they have the quickest processing times. The credit histories of the customers and the kind of credit card they use may have an impact on the interest rates on these loans, which may be 1% to 2.5% higher than those on personal loans. The credit card issuer may give the customer a loan that is larger than the credit limit allowed if they are confident in their ability to collect the debt. The idfc millennia credit card's limit would determine how much of a loan was given out.
Final words
Keep in mind the wide variety of benefits and features of credit cards are the key reason why users opt for them. Whether its a fuel, travel, cashback, premium or shopping specific card, a high credit score will always increase your eligibility for credit cards.
Also, since almost all banks offer a wide variety of credit cards made specifically for different target segments it's crucial to choose the rightcredit card after taking the most crucial factors into consideration and factoring in the benefits mentioned above.