An instant credit card is commonly perceived as just a way to make purchases, yet its potential extends far beyond that. This easy-to-access credit card offers numerous benefits that many don’t know about, and when utilised wisely, they can significantly enhance your financial well-being.
This type of card can help you access valuable travel perks, increase your credit score, get discounts on shopping, and much more. Here’s an overview of the common benefits that this card offers and tips to maximise them.
Assess Your Spending Pattern and Choose a Suitable Card
To get the maximum benefits, choosing a suitable card is vital. Everyone has different spending habits, and choosing a card that matches your unique needs can help. Here are some examples:
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A student can opt for a student credit card, which offers enticing discounts on essential items such as books and laptops
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Entrepreneurs may benefit from a business credit card to avail benefits on transactions related to their business operations
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A co-branded credit card may be an ideal choice if you frequently shop from a specific brand that has a tie-up with the card issuer
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Getting a travel credit card can be beneficial for frequent travellers, whether you use it for leisure or business travel
While choosing an instant credit card, pay attention to the credit limit as well. The issuer grants a credit limit to you, meaning you can make payments only within this approved limit. They decide on this limit based on these factors:
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Your credit score
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Your existing credit accounts
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Your debt-to-income ratio
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Your past repayment behaviour
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Your income and employment
Understand the Reward Points System Thoroughly
Another point to pay attention to is the reward program that allows you to earn points on your transactions. When managed effectively, these reward points have the potential to enhance your savings and provide various perks.
Mere accumulation of these points isn’t sufficient. To harness their full advantage, you need to understand how to use them smartly. Here are some ways to utilise these points:
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Convert your accumulated points into cashback
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Exchange them for gift cards and other rewards
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Use your points for payments to enhance your savings
Make the Most of Your Joining or Welcome Benefits
Credit card companies offer a number of welcome or joining perks to attract new customers. You can use them to your advantage and increase your savings. Some perks include:
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More points based on certain spending thresholds
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Gift vouchers or hotel stays from certain partners
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Discounts and offers on shopping or dining
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Waivers on certain fees and charges
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Free lounge access at various airports
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Complementary travel and luggage insurance
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Free tickets for movies or certain events
Pay Attention to Limited Time Offers
To amplify your savings, keep an eye on limited-time deals. These offers are typically available during:
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Special events like during IPL matches
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Promotional periods
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Holidays and festivals
These offers can easily slip by unnoticed as they’re only available for a limited time. Here’s how you can stay informed:
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Enable mobile notifications from your issuer
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Subscribe to mail marketing from the issuer
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Check the portal or app of your issuer regularly
Use Credit Cards for Recurring Payments
By making monthly or other recurring payments through your card, you can earn more cashback and reward points, which helps you save more. You can use your instant credit card for:
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Payment of your utility bills
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Payment of school/college fees
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Payments of loan EMIs or insurance premium
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Payment of subscriptions on OTT platforms
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Payment of rent
Check the Interest Rate and Other Associated Charges
Issuers provide the option for partial payments of your credit card bill. However, utilising this option incurs interest charges on the remaining balance. Over time, these charges can accumulate significantly, making repayment difficult and expensive.
So, pay attention to the interest rate and check it beforehand to keep your borrowing cost on the lower side. In addition to the interest rate, checking these charges is also essential:
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Joining fees
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Overlimit fees
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Late payment fees
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Annual renewal charges
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ATM cash withdrawal charges
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Foreign transaction fees
Read the Terms and Conditions Thoroughly
While making any financial decision, including getting and using a credit card, it’s essential to read the fine print thoroughly. With this information, you can manage your expenses and expectations better.
You can get the following information by reading the terms:
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Changes in the interest rate and other charges
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Your duties and responsibilities while using a card
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Duration of the grace period and each billing cycle
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Calculation of the interest
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Details of redeeming and using reward points as well as their expiry
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Exceptions in insurance coverage, joining benefits and more
With all this information on hand, all you need to know now is how to apply for a credit card. Instant credit cards make this easy as they allow you to apply online, qualify in minutes and start using the card in no time. To get various perks and instant access, the One Credit Card is a great option to consider.
With it, you can get deals on shopping and dining and up to 5X rewards on top spends. In addition, you can easily convert your large purchases into affordable EMIs via its app and plan international trips with a built-in travel planner. You can also manage your spending confidently by setting limits and accessing budgeting tools. Apply now to enjoy all this and more.
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