Building Financial Confidence – Credit Cards for Beginners

One of the most attractive benefits of opting for a beginner’s credit card is that banks offer a variety of attractive offers to first-time credit card holders. For instance, a popular beginner’s credit card helping customers avail attractive benefits and reward points is the EazyDiner credit card offered by IndusInd Bank. Before you apply for a new credit card, first-time credit card holders can follow a set of tips to build their creditworthiness and simultaneously benefit from a range of rewards.

Things Beginners Must Check Before Applying for a Credit Card

Customers who apply for a new credit card online can easily benefit from easy credit card approval. However, they must consider other credit card features before signing up for a credit card online. Understanding these features can help investors build financial confidence through their credit cards.

1. Easy credit card approval:

The first feature that a borrower must check should be whether the bank in question can approve their credit card request instantly. An instant credit card approval is based on the borrower’s credit score and a few other parameters and offers various convenient features through the card. IndusInd Bank offers instant approvals with a 100% digital application process that consists of only three steps. An instant credit card approval online makes the process of getting a credit card seamless.

2. Contactless payments:

IndusInd Bank Credit Cards like the EazyDiner Card also offer the benefit of contactless payments. Cardholders can tap their card at merchant locations that accept contactless payments and make secure purchases. Customers can shop using this feature at over 10 lakh merchant outlets in India and over 30 million outlets worldwide that accept card payments.

3. Rewards and benefits on offer:

A very crucial feature that every borrower must check while selecting a credit card is the rewards and benefits that the card offers. IndusInd Bank’s EazyDiner card offers a twelve-month-long EazyDiner Prime membership worth ₹2,495 for FREE. Borrowers can also earn up to 10 reward points on every ₹100 spent on dining, shopping, and entertainment. Furthermore, borrowers can benefit from two complimentary domestic visits every calendar quarter at airport lounges in India.

4. Credit card’s interest rate:

Credit card interest rate has a direct effect on a beginner’s credit card repayment cycle. First-time cardholders must, therefore, check the card’s interest rate before applying.

5. Eligibility for the credit card:

They can approach the bank to ascertain whether they qualify for a particular credit card. Any borrower who wishes to know their eligibility for the EazyDiner card can contact IndusInd Bank to know the same.

6. Billing cycle:

Every credit card has a billing cycle, which is typically around 30 days. This is the period for which the credit card statement will be generated, and every transaction made during this duration will be included in the statement. Cardholders should be aware of their card’s billing cycle and payment due date to avoid late payments. Timely bill payments are crucial for maintaining a good credit score and displaying responsible credit behaviour. While cardholders can choose to pay the minimum amount due for each billing cycle instead of the total amount due, they will have to bear interest.

7. Credit card’s grace period:

A credit card’s grace period is the period during which the card issuer does not charge any interest on the transactions made if they repay their new balance before the due date. Borrowers must check the grace period of a credit card before signing up for it.

8. Maintaining a balanced credit utilisation ratio:

“Credit Utilisation Ratio” (CUR) is the percentage of the total credit that a borrower has utilised to the total credit available across all the credit products for which they have signed up. To maintain a healthy credit score, borrowers must maintain a CUR of below 30%.

Advice on Using Credit Cards Responsibly

• Start with a modest credit limit to help you control your spending and stay debt-free.
• Make sure you pay your minimum amount on time each month by setting up automatic payments.
• If at all feasible, pay up the entire amount owed. This will help you establish good credit and save interest costs.
• Remind yourself not to splurge by keeping an eye on your credit card statements.
• Avoid applying for too many credit cards at once. Your credit score may suffer as a result of several credit card queries.
• Be cautious when taking out a cash advance because they usually have higher fees and interest rates than standard purchases.

Ending note

IndusInd Bank’s EazyDiner card can help customers avail a range of benefits and rewards that can help them get instant access to funds and benefit from a multi-cuisine culinary experience. Beginners can follow the tips mentioned in this article to sign up for a beneficial beginner’s credit card in India.