Navigating Credit Cards features and benefits

3 min read Jan 17, 2024

Imagine you're planning the perfect vacation – flights booked, itinerary set, and excitement brewing. But what if this trip could be more rewarding? What if your credit card, often perceived merely as a tool for spending, could unlock a world of benefits, making your journey even more memorable?

Comprehending Credit Card features and benefits in India is not just advantageous; it's crucial. The above scenario is a reality for those savvy about the Credit Card benefits in India today. From utilising rewards effectively to bolstering your credit score, Credit Cards in India are multifaceted financial tools designed to elevate your lifestyle and provide financial ease.

Features of Credit Cards

Credit Cards come with various features, each designed to offer unique advantages. Here are some of the best Credit Card features:

• Credit limit: This is the maximum amount you can spend on your card. A higher credit limit can be beneficial for making large purchases and positively impact your credit score when used responsibly.
• Fraud protection: This feature safeguards you against unauthorised transactions, providing a layer of security to your finances and peace of mind.
• Annual fees: Some cards charge an annual fee but often come with added benefits like higher rewards rates or additional perks that can outweigh the cost.
• Introductory APR: Many cards offer a low introductory Annual Percentage Rate, which can be beneficial for making large purchases or transferring balances, helping to save on interest costs in the short term.
• Sign-up bonus: A highly attractive feature for new cardholders, the sign-up bonus often involves additional points, cashback, or other rewards that can be earned by meeting certain spending thresholds within the initial months of Credit Card ownership.

Top 12 Credit Card benefits

1. Rewards for using Credit Card

Rewards are a way to make your expenses work for you. On every purchase, earn points, miles, or cashback, redeemable for various perks, such as shopping vouchers or flight tickets, making each transaction more rewarding.

2. Easy access Credit Cards

Credit Cards offer the convenience of immediate access to funds, ensuring you’re never stranded in case of financial emergencies or spontaneous purchases. This accessibility is vital for maintaining financial flexibility in today's fast-paced world.

3. Credit Card EMI facility

The Credit Card EMI Facility is a game-changer for managing large expenses. It allows you to convert hefty purchases into manageable monthly instalments, easing the financial burden and helping with better budget management.

4. Buy on credit

Buying now and paying later is a cornerstone of Credit Card usage. It provides a buffer for your cash flow, allowing you to manage your finances more effectively without immediate expenditure.

5. Purchase protection

Purchase Protection often accompanies Credit Cards, safeguarding your purchases against theft, loss, or accidental damage. This adds an extra layer of security to your shopping experience.

6. Improve your credit score

Regular and responsible use of Credit Cards can positively impact your credit score. Timely repayments and sensible spending can enhance your creditworthiness, which is crucial for future loan or credit applications.

7. Travel benefits

Many Credit Cards offer exclusive travel-related perks, including complimentary airport lounge access, travel insurance, hotel upgrades, and even free air tickets. These benefits can significantly enhance your travel experience.

8. Recurring payments with Credit Cards

Setting up automatic payments for recurring bills with your Credit Card ensures timely payments and might also offer additional rewards. It's a convenient way to manage regular expenses and avoid late fees.

9. Get cashback and discounts for spending with Credit Card

Maximise the value of your spending with cashback and discounts offered on various transactions. These perks can lead to significant savings over time, especially on frequent purchases.

10. Balance transfers

Balance transfer features allow you to transfer the outstanding balance of one card to another, usually at lower interest rates. This can be a strategic move to manage high-interest Credit Card debt.

11. Insurance coverage

Many Credit Cards provide various types of insurance, like travel, accident, and purchase insurance. This additional security feature brings peace of mind, knowing you're covered against unforeseen events.

12. Flexible credit

Flexibility in credit usage and repayment options makes Credit Cards a dynamic financial tool. The credit limit offered by Credit Cards gives you the freedom to choose your repayment amount each month. This flexibility helps in maintaining a balance between spending and financial planning. Tailored to suit different spending habits and lifestyles, they offer a degree of control over your finances.

Things to know while using a Credit Card in the right way

When using Credit Cards, it's essential to keep these five key things in mind for effective and responsible management:

• Pay bills on time: Timely bill payments are crucial. They help avoid late fees and play a significant role in maintaining or improving your credit score. Consistent on-time payments reflect positively on your credit history.
• Understand interest rates and fees: Be well-informed about your Credit Card’s interest rates, annual fees, and any other charges. This knowledge is vital for managing expenses and avoiding surprises in your billing statements.
• Monitor credit utilisation: Keep an eye on your credit utilisation ratio, which should ideally be below 30% of your credit limit. High utilisation can negatively impact your credit score, while lower utilisation suggests responsible credit management.
• Regularly check account statements: Regularly reviewing your Credit Card statements helps in early detection of any unauthorised transactions or billing errors, ensuring the security and accuracy of your account.
• Maximise rewards and benefits: Understand and utilise the rewards and benefits that come with your Credit Card. Whether it's cashback, points, travel perks, or other rewards, using them strategically can lead to significant savings and advantages.

Also Read: How to get a Credit Card in 3 easy steps

Conclusion

Credit Cards have become indispensable in an era where financial agility and security are paramount. In India, with its diverse and rapidly advancing economy, the benefits and features of Credit Cards are not just a convenience but a necessity for savvy financial management. The advantages are multifaceted, from building a robust credit score to enjoying luxurious travel perks.

Amidst this landscape, Axis Bank Credit Cards is a compelling choice. They encapsulate all these benefits and more, tailored to fit their customers' unique needs and lifestyles.

In addition to the benefits mentioned above, Axis Bank Credit Cards come with other features like cash advance facilities, allowing cash withdrawals up to a certain percentage of your credit limit, and add-on Credit Cards, where you can share the benefits with family members. These features make Axis Bank Credit Cards a comprehensive financial tool, blending convenience, rewards, and security into one package.

By choosing an Axis Bank Credit Card, you're not just opting for a payment tool but embracing a lifestyle of convenience, rewards, and security. It's a choice that empowers you to navigate the financial complexities of today's world with confidence and ease.

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.