Credit cards have a poor reputation among GenZ, as the term “credit card” is linked with “debt”. This may be owing to inadequate knowledge regarding credit cards, particularly amongst the GenZ. Today, India has the largest GenZ and millennial population, making them the important consumers of goods. Thus, being aware about the top credit cards and how they may be advantageous is important.
Firstly, you must note that not all the debts are bad. Consider this; will an average salaried individual able to purchase a car or home without opting for a loan? How would you make payment of costly college degrees without opting for any education loan?
Without any planned debt, it may be impossible for anyone to mitigate their financial goals. Unplanned debts, however, result in poor financial health. Thus, it is important to become financially literate regarding how you can make use of the credit card by issuers like AU zenith credit card, an AU bank credit card, Kotak Privy League Signature credit card, a Kotak Credit card, Standard Chartered DigiSmart, a Standard Chartered credit card.
How can a credit card help you eliminate stress and burden on your financial requirements?
Exciting reward points and exclusive cash backs/discounts
In the case you are a young adult, knowing the importance regarding growing your savings account online and staying cautious regarding your expenses is important. It is an add-on when you get the reward on every penny that you spend. In a way, you can save money each time you swipe you card.
Fact is, owning a card makes every spend more rewarding by providing cashbacks, discounts or rewards points that may be redeemed for dinners, movie vouchers, electrical goods and even air tickets. Based on your preferences and expenses, you can select a reward programme that may provide you with maximum benefits.
For instance, frequent travellers may earn free flights by making use of a specialised travel credit card. And in the case, you are a frequent driver, then you may opt for the credit card providing maximum cashback at the fuel station.
Also Check: AU zenith credit card
Little additional support with help
Saving and investing are basically new concepts for the GenZ who have stepped into adulthood. This is a credit card, which comes in handy by offering additional financial help. In the case of medical exigency where you do not have sufficient fund to cover up your expenditures, what would you do? Yes, you may turn towards savings and what if you require instant cash?
This is when you can depend on credit card. This is one of the quickest ways to get swift credit without pulling out any funds from your investments. In scenario, where you cannot depend on your income, here’s where a credit card may come for your help. In a way, it comes across as short-term credit option.
However, ensure to make all your financial decisions in a wise manner. So, it is necessary to understand how and where you can make use of the credit card in tough scenarios. Also, it is important to know how you can prioritise your credit card outstanding dues during financial exigencies.
Cash-free lifestyle equals a stress-free lifestyle
In the case there’s one thing GenZ crave above, it is a stress-free lifestyle. Walking out of your front door with massive cash in hand can make you come across as a very easy target for a theft. In a scenario where digital wallets have gained massive recognition, carrying money is not a wise decision. Instead, it is a practical option to go for a debit card or credit card.
Carrying a debit card or credit card is a way safer option, but the credit cards often come across as a better choice than debit cards because they restrict your liability for any fraud. In the case you promptly inform your issuer during fraudulent transactions, you may get your fund back and have your credit card blocked instantly.
Also, with a credit card, you may not just lower your chances of witnessing theft, you even tend to do environment a favour by selecting paperless transactions.
Enjoy a convenient and comfortable travel, shopping, and dining experience
Ever said “no” to something to which you wanted to purchase? Or have you ever prepared a plan to go on a life changing trip with your affectionate and loved ones? Fortunately, now you do not require fretting about surpassing your budget through your credit card. So, you can purchase a couple of more drinks, and if you plan out wisely, they may go on a trip without any worries.
Credit cards not just offer you the rewards for shopping but even come with various security layers, lowering your risk of losing out the funds when making online transactions. However, careless expenses have a cost attached. While it is a fact that your conspicuous expenditure at times tend to outweigh the requirements of financial needs, you require exercising judgement and stay smart with your choices. Always note that you give importance to what you require over and what you need when it is about using a card.
Build credit score
For a few GenZ, one of the important setbacks on your financial journey to fiscal responsibility may be the lack of knowledge regarding credit score and its importance. A score is based on distinct parameters, like repayment record, kinds of loans, credit history length and overall debt. It plays a very important role in portraying your behaviour with money. To form a strong score and build a strong financial health, you must have a credit card.
Your score determines how credible you are and being creditworthy makes complete sense if you are looking to apply for a loan. Lenders make use of credit score to assess your chances as an individual to repay the loan simply. By credit card due repayment on time, you show a positive financial behaviour, making you a creditworthy individual in the eyes of the credit rating agencies.
Maintaining a strong score would allow you to get benefit of a secure financial future and make you eligible for more credits in the future.