4 MinsFeb 2, 2023
Is it a good idea to get a credit card when you start a new job? The response to this question will vary based on whom you ask. According to some, starting a new job is the ideal time to get a credit card as you will be making money, and you should be spending it to fulfil your desires. But others may believe that a new job is supposed to teach you financial responsibility and that you should save money instead of spending it.
Following are some pointers that can help decide whether you should apply for a credit card:
Choose a credit card that fits your needs
Today, there are multiple credit cards available for you to choose from. For instance, Axis Bank offers over 30 different types of credit cards, all designed to fit the individual needs of customers and certain lifestyle patterns. Let us look at a range of benefits that credit cards offer.
Travel benefits:
- For example, if you like to travel, you should opt for a credit card that offers air mile rewards and international spending benefits. The Axis Bank Magnus Credit Card offers complimentary flight tickets, lounge access, and more. It encourages people to travel more and save on their trips.
- Similarly, the Axis Bank Atlas Credit Card also offers exclusive benefits for the traveller in you! These include additional reward points for spending on travel, which can be used to book flights, hotel accommodation and experiences on the dedicated TRAVEL EDGE portal. Or you can convert those miles into partner points with the Points/Miles Transfer Program.
Lifetime free offer:
If you are looking for a wider range of benefits, the MY Zone Credit Card would be ideal for you. It offers free Sony Liv annual membership, 40% off on Swiggy and Rs. 600 off on Ajio if you spend a certain amount. If you apply before Feb 28, 2023, you can get a Lifetime Free offer and additionally enjoy a benefit of Amazon voucher worth Rs. 500.
[Also Read: Ways a Credit Card Can Help You Save Money]
Benefits of Paying Your Credit Card bills on time
Most credit cards work on a 40-50 day payment cycle. This means that you are billed at the end of each month. You have a two-week period to pay your dues.
Many cardholders make the mistake of delaying their credit card bill payments. But remember, if you make late payments, you’ll be charged interest anywhere between 30 and 40% p.a. That translates to about 3% per month! This interest keeps adding up. If you keep delaying your payments, the interest charges alone become a huge burden on your finances.
Another problem is the negative impact on your CIBIL score. Having a good CIBIL score ensures you will be able to get loans when required. Delaying your credit card payments will lower your CIBIL score and impact your ability to quickly get a loan with a high amount.
Repaying your credit card bill on time is the ideal way to boost your CIBIL score. If you are just starting your career, chances are you won't have taken many loans in the past or had a significant credit history. Ensure that you pay your credit card bills timely and in full. This will help you build a good CIBIL score.
Go Through the Credit Card Fees & Charges
There are several types of credit card fees — annual fees, late payment fees, overdraft fees, cash withdrawal fees, etc. You can opt for free credit cards, but most cards involve some payments.
Credit card fees pose an interesting dilemma. On one hand, free credit cards are always easier to accept — there are no commitments, and you can experiment with them. If you use them smartly, you can still enjoy a lot of benefits.
But you get limited benefits with free credit cards. In exchange for a minor annual maintenance charge, you might just be able to unlock a whole range of additional benefits.
As an added benefit, a credit card can be an excellent way for young adults to learn about financial discipline and responsibility, as you have to manage your card spending and repay your card dues on time.
Conclusion
Getting a credit card is a good way to build a positive credit score. If you decide to get a credit card, you must ensure that you clear your dues on time. It is beneficial to limit your spending and use your credit card wisely. Click here to apply for a credit card.
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.
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.
