5 signs it’s time to apply for a new credit card

Indians benefit from a highly competitive credit card market. There were 41.03 million credit card holders in India until FY 2018, with a 0.97 million rise in the first quarter of FY 2019.

For the approx. 1 million new users, choosing the most suitable new credit card can be a daunting task. But perhaps the most difficult decision is to decide when to apply for a new card as an existing user.

That being said, let’s take a look at 5 instances which questions what is a credit card and why you might need it –

1. You don’t own a credit card

With so many lucrative offers on the market, it’s time you apply for a credit card to build-up credit and racks up rewards. The key to using a credit card is to make cashless purchases. However, use it responsibly and never make purchases that you can’t afford. By paying off your dues in time, you not only increase your savings but also, build a good credit score. Developing a solid credit history puts you in a favourable position in the eyes of lenders.

You can avail a Bajaj Finserv RBL Bank SuperCard which is loaded with unique features. It comes with several industry-first features and innovation that not only covers your everyday cash needs but also offers signing-up bonus, unlike other credit cards.

Bajaj Finserv also brings you pre-approved offers on credit cards and unsecured advances like personal loans, business loans, secured credits like home loans among numerous other financial products and services. These offers simplify the process and save time as well. You can check your pre-approved offer by providing a few necessary details.

2. You might require a balance transfer offer

Before you opt for a balance transfer, first know what is a credit card and how it can be used to transfer balances. For instance, you own a credit card, but you can still opt for a new one as new cards offer interest-free financing up to a certain period on balance transfers and new purchases.

So, while paying interests on the existing card, you can transfer the debt to a new card with lower interest rates. It helps you to reduce the total interest amount you’re charged with. A balance transfer to a different card with lower interest rates might cost you a bit upfront but saves you in the long haul.

3. To pick up reward benefits

Reward programs for credit cards have expanded over time allowing customers to choose a card that best suits the needs. Most cards focus on specific vendors and offer accelerated reward points when the card is swiped to purchase from such vendors. While some offer complimentary airport lounge access, the others provide reward points and cash-back every time you make any purchase.

Furthermore, the sign-up bonuses are at times doubled or tripled if one is willing to take the bonus in non-cash equivalents like airline miles and hotel redemptions. But, make sure you know what is a credit card and go through the eligibility criteria before availing such benefits.

4. You might disown the old card

If you own a credit card for more than 10 years or so, the interest rates might not be as competitive as it was before. Moreover, you could be paying a hefty annual fee when there are equivalent cards in the market with no yearly expense.

You can consider owning a new card from the same issuer. This way you can leverage multiple offers in a better way. However, removing a card from the older account could dip your CIBIL score. But, a little dip won’t hamper much if you have an outstanding credit score.

5. Your situation has changed

As you build up a good credit history, the credit score also improves over time. This makes you qualify for a better credit card deal than the one you’re using now. Hence, shop around to take the maximum advantage of your solid credit score.

Consider the mentioned indications that it’s time to get a new credit card. It is also essential to know what is a credit card, how to properly utilise it across its benefits and features available to make the most of it.