What are the benefits of using a financial institution card?

I’m a 22-year-old expert working at an MNC and have to know the benefits of getting a financial institution card?

—Name withheld on request

Being a youthful earner, this can be a excellent time with the intention to start establishing a powerful credit score rating bureau ranking, and likewise start monetizing your spends by leveraging financial institution playing cards with a plethora of choices akin to worthwhile reward elements and cashback incentives.

This wiser switch will not solely help in some month-to-month monetary financial savings on essential purchases like groceries, gasoline and totally different on-line payments, nevertheless will even contribute in route of buying a high-quality credit score rating bureau ranking. This, in flip, would have a cascading affect on procuring totally different loans in the end, the place mortgage pricing is also linked to credit score rating ranking. Due to the interest-free grace interval provided by financial institution playing cards, there’s moreover the extra good thing about deferring payments for as a lot as 45–50 days, which extra enhances the price proposition. Do bear in mind that financial institution playing cards incur nice charges of curiosity in case you don’t pay funds on time. So, make use of financial institution playing cards correctly and reap their benefits.

Shailendra Singh is managing director and chief govt officer, BOB Financial Solutions Limited.

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