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2 mins Read | 1 Year Ago

Unlock Financial Advantage with Credit Card Offers | ICICI Bank

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Find Your Financial Advantage with Latest Credit Card Offers

In today's world, Credit Cards have become an essential part of our daily lives. They offer us a convenient way to make purchases, earn rewards and build a credit score. With the ever-increasing competition among Credit Card providers, finding the right Credit Card that suits your financial needs can be a tough choice. Keeping an eye on the latest Credit Card offers will help you to grab the best Credit Card offers, earn cashback or rewards and get exclusive perks and benefits. How do Credit Cards work?

Credit Cards allow you to borrow money up to a bank set pre-approved credit limit set by a bank. The credit limit is determined based on the Credit Card holder's income, debt and credit score. Credit Cards are available for both offline and online purchases of products and services. Banks give customers 40–50 days to settle the bills following the date of usage. A financing charge, which may be as high as 3%, will be applied to the billing amount if the deadline for the due payment is not met.

Credit Cards Usage

Credit Cards have become an important personal finance product. You can use them for several purposes, some of which are listed below.

1. For emergencies when there are insufficient savings

Instant funds availability is one of the advantages of using a Credit Card. It is helpful when you need money during an emergency. Moreover, with the card issuer's 45 day grace period for repayment, you have the flexibility to repay the used credit. As a result, you are prepared to tackle any financial issue.

2. Improve credit score

Before approving a loan, financial organisations and banks check your credit score. It is a number that represents how well you handle debt repayment. There is a likelihood of obtaining a credit score increase with a Credit Card. The credit score is built based on debt, payment history, number of debts, type of debt and credit utilisation.

A better credit score makes it easier to secure loans faster and at better interest rates. Customers have more negotiating power to get the best services when they have a high credit score. Customers with strong credit scores might receive a lower interest rate from banks and NBFCs on their loans. Additionally, if your score is high, you have a wide range of options to select from. A Credit Card is usually a good option to establish solid credit history.

3. EMI purchases

Increasing client affordability may be made possible by EMIs. You can use a Credit Card to turn your bill for an expensive purchase into easy EMIs over a period. In this way, there will not be any pressure to pay back the entire sum at once.

4. Credit Card cashback incentives and promotions

Customers who use Credit Cards also receive extra perks such as discounts, cashbacks and Reward Points. Several Credit Cards come with a long list of benefits like free entry to lounges at airports, access to golf courses and other facilities.

5. Balance transfer facility

A selected number of Credit Cards allow you to transfer outstanding Credit Card balance to another Credit Card account even if the same bank does not issue the new Credit Card. When you use this facility a nominal charge will be applied and you can reduce your debt.

What aspects should I take into account when selecting a Credit Card?

You should take into account the following things when applying for a Credit Card:

  • Finance fees: The finance chargesapply when the Credit Card bills are not paid in time.

  • Fee imposed: Several Credit Card issuers impose fees such as yearly fees, late payment costs and joining fees. Joining and yearly dues range from Rs 0 to Rs 5,000. Before selecting a Credit Card, make sure to review these fees. Always opt for a Credit Card that offers benefits like high Reward Point value and a wide range to earn points that will offset the fees. Examine the Reward Point expiry date if the Credit Card mentions one. Most of them expire two to three years after being earned. There are also Credit Cards providing Reward Points that never expire.

  • Check credit and cash limits: Before getting a Credit Card, you should check the available credit limit. The credit limit determines how much you can borrow from the issuer. Moreover, you should know that for cash withdrawals, the card issuer charges an extra fee. The issuer determines the credit limit based on several important parameters such as credit score, repayment history, income etc. When the Credit Card limit is exceeded, several banks levy over-limit fees. If possible, get a Credit Card with a bigger limit as it will have a higher chance of keeping your credit utilisation low and increasing your score.

  • Credit score: Approval of credit card applications is significantly influenced by credit score. Customers with credit scores of 750 or above are more likely to be approved for Credit Cards. Before applying for a Credit Card, check your score with online credit bureaus for free.

  • Joining bonuses: Several Credit Card companies provide welcome bonuses and extra advantages when you make a purchase. Travel and premium categories are two of these in particular. Before making a choice, evaluate the financial value of the joining bonuses offered by various Credit Cards.

To sum up

Credit Cards can be very helpful in times of financial emergency when you do not have enough funds. Credit cards offer numerous discounts, rewards and deals to customers. A high credit score also improves your chances of being approved for personal loans with bigger borrowing limits. To reap maximum benefits, develop habits like timely payment of debts and spending wisely.

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