A credit card is one of the most common yet vital financial tools in today’s time to make online and offline payments. Even if you don’t have funds in your savings bank account, you can use a credit card to cover your expenses easily.
However, not all people believe in availing the facility because they feel that they may land into a financial soup. Yes, even if people have the required credit card eligibility, they refrain from applying for it.
What’s more, there are various myths about credit cards as well, which makes it tough for someone to be convinced about it.
Hence, if you are one of those people who wished to apply for a credit card, but not doing due to myths, then this post is for you. By going through this article, you will be able to debunk some common credit card myths and apply for it with a free mind.
A quick look at some common credit card myths
- Availing a new credit card can affect your Credit Score
If you apply for a credit card, that will lead to a hard credit inquiry by your lender. Unless you make too many credit card applications for at least one to get approved, only in that case your Credit Score may be affected. However, a single credit card application is unlikely to hamper it by a few points. Hence, you should always check your credit card eligibility and apply for the right one with the highest approval chances.
- Having one credit card is enough
It’s understandable that you don’t want to land into the trouble of overspending by having more than one card. However, if you have needs, and can pay the outstanding amounts without defaults, then there is no harm in having more cards. For example, nowadays leading lenders such as Bajaj Finserv is offering a feature-rich Bajaj Finserv RBL Bank SuperCard. Availing the same can help you enjoy 20,000 reward points as the welcome bonus which you can use for discounts.
- Avoiding credit limit hikes if you don’t need it
Did you know that credit card companies reward their customers with regular payment history with a higher limit? Yes, the credit card eligibility for a higher limit gets pre-approved as per your repayment history. Hence, even if you don’t need a higher than the existing credit limit, you should not reject it. You never know when you may need a higher credit, and hence, it’s good not to deny it.
- Make your monthly settlements super quick
It is a tricky one. Conventional thought is to pay the credit card outstanding in full each month to help keep a consistently healthy CIBIL Score. However, it may not be completely smart. Why? It’s because if you can carry a small balance forward, it could be better for your Credit Score when compared with none at all.
- Don’t go for a credit card with annual or renewal fee
Many people despite having the credit card eligibility don’t apply for it because they also don’t want to pay the annual or renewal fee. The concept of a free credit card appeals more to people than with charges. However, in reality, it is a factor that is determined by personal spending habits.
If you can pay the annual charges, you can grab more perks when compared to a free credit card. What’s more, you may also enjoy sub waivers such as fuel and free movie tickets and free airport lounge access if you pay such charges. Overall, it is not wrong to apply for a credit card with an annual or renewal fees.
You are now aware of some of the common credit card misconceptions or myths. If you have required credit card eligibility, it is advised to avail of a credit card. They can become your reliable friends if you manage them well. Using your credit cards to fulfil your needs and aspirations is the perfect way to use your credit cards.
Do you wish to apply for your first credit card? Then there are many lenders in the market offering credit cards. You can compare all offers online and then apply as per their features and your needs.
Bajaj Finserv also offers amazing pre-approved offers on credit cards, home loans, personal loans, business loans, doctor loans and many other financial products.
Such deals aim to make the entire loan system hassle-free and less time-consuming. You can share some of your basic details to unlock your pre-approved loan offers today!