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A Complete Guide Before Applying for SBI Credit Cards

 


Many people are on the fence about the topic of credit cards. Are they a boon or a bane? There are several benefits when it comes to credit cards. For instance, you do not have to carry a huge amount of cash every time you have to go. At the same time, you do not run the risk of getting your money stolen so easily. You can also buy something that is way out of your budget at a time and then give back the money later to your credit card company. No matter what are the opinions of the general folks, credit cards are becoming more and more popular and are here to stay.

 

Nowadays, every bank is offering credit cards in India. One of the most popular banks is the State Bank of India. SBI was founded in the year 1806 and is considered to be one of the largest and the oldest commercial banks in Asia. There are over 59,000 ATMs and the bank has a 20% market share in loans and deposits. It is a bank for every Indian. The bank serves the Indian citizens by satisfying their requirements and needs. Apply for SBI credit cards and get the best offers possible.

Importance of a Credit Card

    Travel Offers: When you purchase things with your credit card, you would be getting reward points and building your credit. Sometimes, when you have good reward points and credit score, you get travel offers. In case you are travelling and got your belongings and essentials stolen, you would also be able to call your credit card company and they would help you get through the matter without much of a hassle.

    Cashback: The cash-back credit card was made by Discover in the United States. By using a credit card, you would be able to buy anything and get a portion of your money back. For instance, if you use the Discover card at that time, you would get around 1% cashback on each purchase. Over the years, other companies built on that idea and now cash backs ranges from 1% to 6%, depending on the purchase. With time, these cash backs would amount to a sizable bonus.

    Reward Points: There are a lot of reward programs. The best way to get the best out of any credit card is to find one that aligns with your spending habits. For instance, you can opt for a credit card that has the point system. You earn points depending on your spending habits and then redeem them for discounts and cashback later down the line. Some cards are known to offer exclusive travel benefits. If you are a frequent traveler, getting such cards would be beneficial and provide you with bonuses and discounts. These kinds of benefits are applicable for spending on groceries, dining and transportation too.

    Fraud Protection: One of the biggest advantages of credit cards is the extra layer of security when compared to debit cards. If you lose your card, and any purchases are made after that, you would not be losing money directly from your bank account. Once you report your stolen card, you would not be charged for the purchases at all. The company would block the card and carry on the investigation. In the case of debit cards, the money is directly deducted from your bank account. Getting the money back is not impossible but takes a lot more of your time.

    Credit Scores: With good and consistent usage, you would be able to build a credit history. The credit scores are the result of your financial actions. They show how much responsible you are with money. For instance, if you are planning to take a loan in the future, having a good credit score would ease up the process. This is because your credit scores are sent to the credit bureaus and the scores reflect your capacity to deal with money. The longer you use your credit card, the more would you build your credit history, thus, improving your credit scores.

    Tracking: Credit cards are a great way to budget better. All your purchases are stated in your credit card statement. That way, you would be able to have a documented record of your expenses. Some companies even keep these records for years.

    Grace Period: Credit cards have a grace period, a time when you can pay off the previous month’s bills accordingly. Use this grace period wisely as it contributes a lot to the building of your credit score. To avoid any additional charges while paying your bills and building your score, make sure to not spend more than you earn.

    Universal Acceptance: Credit cards are more accepted universally than debit cards. Renting cars and housing is easier when using a credit card, too. Most credit cards are allowed in foreign countries while the same cannot be said for every debit card.

Final Take

If you deem yourself financially responsible, using a credit card can bring you a lot of benefits - such as rewards, protection, and convenience. Building your credit would also enable you to get loans in the future if need be.

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