admin While it’s not entirely incorrect, many people mistakenly believe that using an IDFC credit card is only for making purchases and paying bills. However, most credit cards such as lifetime free credit card are used for much more than that. They can also be a terrific method to get points and miles for travel, depending on which one you have. They give you the opportunity to raise your credit score, provide you with reward points that can be redeemed for a variety of products and services, and secure discounts from retail partners so you may make significant savings.
Airport lounge access: Your IDFC credit card can help you travel more affordably and conveniently by air. Many credit cards provide free lounge access at both domestic and foreign airports. You may make use of the free Wi-Fi, buffet feasts, and comfortable seats thanks to this. The Word Plus version of the Bajaj Finserv RBL Bank SuperCard is one such card that provides you with these advantages.
Baggage and travel insurance: If you frequently travel, seek a card that provides free insurance in the event that your luggage or critical documents, such as your passport, are lost or stolen while you’re travelling. Some lifetime free credit card provide coverage for domestic and international travel while credit card companies even cover lost tickets or missed connecting flights.
Purchase protection insurance: Many lifetime free credit card can reimburse you if items you’ve bought with the card are damaged by a fire or stolen by thieves. Purchase protection is often provided against incidents stated by your issuer and up to a specific limit.
Discounted and free movie tickets: Choose a credit card with discounts on movie tickets. For instance, there are many credit cards in the market that give you free movie tickets if you spend a particular amount in a given month.
Indemnity cover for doctors: If you work in medicine, keep an eye out for a credit card or lifetime free credit card that includes indemnity insurance. There is an RBL Bank Doctor’s SuperCard which provides indemnity insurance of up to INR 20 lakh against costs that could result from negligence while you’re practising.
EMI facility: Now credit cards such as IDFC credit card go beyond just providing credit card reward points that you may use to offset regular spending, making them more valuable. Some credit cards offer an EMI facility which allows you to convert purchases into smaller instalments.
Interest-free cash withdrawals: Normally, you cannot use a credit card to withdraw money from an ATM, although some variations let you do so for a fee.
Short-term personal loans: You can utilise your credit card to turn the available cash limit into a loan if you require money in an urgent situation. Few issuers provide this service, which has a significant impact on your convenience and allows you to meet your need smoothly.
Sins You Shouldn’t Be Making With Credit Card
Above said offers might look tempting but soon you could draw into a debt trap if not used smartly. Ensure you do not make these mistakes with your credit card:
Not making a timely payment: When payments are due, credit card companies send mail- and SMS-based reminders. Don’t disregard these warnings. When a payment is missed, a penalty and interest are added to the balance. Additionally, any purchases made in the following month are not eligible for interest-free credit. However, its significance will be seen on your credit score causing it to get hurt which will hurt your chances of getting any future credit. You can set up an auto-pay facility wherein you instruct your bank to pay the IDFC credit card bill by a particular date each month. If you are struggling financially, at least pay the bare minimum so that there is no fine.
Paying simply the bare minimum consistently: Companies that provide credit cards want you to revolve the credit so they may charge you a high-interest rate. If you only pay the minimum amount due, the interest of 2–4% is applied to the remaining balance. This is the most expensive type of debt, which is coming with an annual cost of 24–48%. The interest-free period for purchases does not apply if you have a balance on your IDFC credit card. Any new expenditures start to accrue interest right away, costing you a lot in interest charges. The way out of this situation is to manage your spending and only spend what you can comfortably pay back in full at the end of the month.
Withdrawing cash: It is never recommended to withdraw cash with your credit card. Every cash advance carries a set fee and this may reach 2.5% of the withdrawn amount. In contrast to purchases made in stores, the interest rate metre for cash withdrawals kicks in on the first day. Cash withdrawals made in foreign currencies while travelling internationally may be subject to an extra transaction fee. Thus, it is always preferable to avoid cash withdrawals until absolutely necessary.
Utilising full limit: The freedom to spend is provided by a lifetime free credit card but not everyone can handle the sudden flow of credit made available to them. With the swipe of a card, items and services that formerly seemed out of reach become accessible. Result? They fall into a debt trap. However, your credit score will suffer if you use up a significant percentage of the credit limit that is available. High credit consumption suggests that the person is credit-hungry and has a higher risk of default. Keep 2-3 credit cards instead of only one to avoid reaching the limit.
Conclusion
The golden rule with a credit card is to never use them to make purchases you wouldn’t have made with cash or a debit card, or to spend more money than you would have otherwise. Being responsible with your money is vital, especially in this unstable economy.
Keeping this in mind, we have laid down the benefits of credit cards you probably didn’t know of. It is important for you to know the benefits of credit cards as they might enable you to make significant financial savings.
