There was a time when there were no credit cards to help you out in case of a cash crunch. People relied on their friends and family to meet their immediate cash requirements. In doing so, they also faced immense embarrassment when the other person denied to lend them money. However, it has become a story of the past as now you have credit cards to meet your financial needs.
With the availability of money as and when required, you can buy goods and services, pay bills, earn rewards and cash backs, etc. more conveniently. You are not worried anymore about how to fulfill their wishes and achieve their goals.
Here are some significant changes that credit cards brought into society:
1. Cultural shift: Credit cards have changed the way people use their money. Earlier, it was used to meet just the necessary expenses. But over time, the availability of easy credit has shifted general perception from necessities to comfort and luxury. If you fulfill certain eligibility criteria, you can easily get a credit card for your various needs.
2. Higher cash flow in the market: Increase in the purchase of goods and services using a credit card have channelized money and increased cash flow in the market. This, in turn, has to lead to economic growth in the country. The availability of higher cash flow has also enabled people to have a better lifestyle.
3. Cashless economy: Credit cards have minimized the use of cash which is often a hassle. Hence, the use of credit cards has contributed to achieving a cashless economy. You can use it for several purposes such as traveling, shopping, dining out, or even for fuel purchases. In return, you also earn attractive discounts and reward points. Hence, with the introduction of credit cards, you are no longer required to carry cash in your pocket.
Credit card eligibility criteria:
Some of the basic eligibility criteria to avail a credit card are as follows:
- You must be at least 18 years of age at the time of the credit card application.
- A regular source of income is required.
- Salaried or self-employed individuals can apply for the credit card.
- Savings account in your name.
- You should have a good credit score or CIBIL Score
Banks generally decide the credit card limit to be offered to you on the basis of your salary, the company you work for, and your relationship with the bank. If you belong to a high-income category, few banks may offer zero annual fees and renewal fees credit cards to you. Some banks may offer a lower credit limit in the beginning and decide to increase the same after they see a consistent and disciplined track record on credit card usage.
Additional Reading: Everything You Should Know About EMI on Credit Card
Conclusion: So, if you don’t have a credit card yet, it’s a good time to apply and manage your finances in a better way. Make sure you have a credit score of 650 and above along with a regular source of income to get the best offers on your credit card.