I’m a 22-year-old skilled working at an MNC and need to know the advantages of getting a bank card?
—Title withheld on request
Being a younger earner, this is a perfect time so that you can begin constructing a sturdy credit score bureau rating, and in addition begin monetizing your spends by leveraging bank cards with a plethora of options akin to profitable reward factors and cashback incentives.
This wiser transfer won’t solely assist in some month-to-month financial savings on important purchases like groceries, gasoline and different on-line bills, however will even contribute in the direction of acquiring a high-quality credit score bureau rating. This, in flip, would have a cascading impact on procuring different loans sooner or later, the place mortgage pricing could also be linked to credit score rating. Because of the interest-free grace interval supplied by bank cards, there’s additionally the additional advantage of deferring bills for as much as 45–50 days, which additional enhances the worth proposition. Do notice that bank cards incur large rates of interest should you don’t pay payments on time. So, make use of bank cards correctly and reap their advantages.
Shailendra Singh is managing director and chief govt officer, BOB Monetary Options Restricted.