It’s a dream many young adults carry throughout their time in college to get their first credit card. As a result of their first job, they can apply for a credit card. Nonetheless, debt is a two-edged sword that can potentially jeopardize their financial future at the very beginning. Hence, conservatives recommend avoiding this tool until one is mature enough to handle their finances independently.
Listed below are six reasons to get a credit card soon as you start working
Getting access to future credit by building a credit history
People take out secured and unsecured loans at various points in their lives, making loans an essential part of personal finance. However, a loan’s interest rate depends on the applicant’s credit score. Your credit score determines how much credit you are eligible for.
When a bank issues a home loan, the credit score calculates the EBLR rate loading. If your credit score is high, you are more likely to get a loan easily and at a lower rate. Apply for a credit card early will benefit you in this regard. Through responsible use of the credit card and paying bills on time online such as RBL credit card bill desk, you will be able to begin your credit journey early and grow your score over time.
When saving is limited during an emergency
Often, young earners, especially those at the beginning of their careers, do not earn enough to have a good amount of savings or an emergency fund to deal with emergencies. A credit card could come in handy in this situation. On the one hand, it will enable you to access money on time, and on the other hand, it provides you with a credit-free period of up to 45 days to plan your repayment. Hence, even if you had fewer savings, you could still use a credit card to manage many life’s unforeseen circumstances.
Take advantage of discounts, cashback, offers, and deals on purchases
There are a lot of products that offer rewards for paying with credit cards that you wouldn’t otherwise receive. Credit cards are excellent financial tools. They serve as the first line of credit and a rewarding payment option. With time, more and more purchases are being made online, and in the last two years, this trend has intensified. Young people tend to seek out their first credit card earlier, not surprising.
Access to a wide range of privileges and benefits
Many credit cards offer perks such as free access to lounges at domestic and international airports, OTT platforms, 24-hour concierge services, and access to golf courses in many places. With cards, you can get many of these privileges, and you can always choose the one that suits your lifestyle. Also if own RBL credit card you can do credit card payment online in a hassle free manner by RBL credit card bill desk.
Educates you on managing finances responsibly
When you use your credit card, you have to weigh the pros and cons and understand the benefit. Credit management is a crucial part of managing your finances efficiently.
Keeping an eye out for overspending urges
To control your tendency to overspend, you need to control your credit line as soon as possible. There may be a tendency to get carried away and overspend when credit cards have an interest-free period for over 45 days, during which nothing goes out of your bank account. As a result, you may end up with soaring credit card bills, causing little or no savings, or worse, being unable to repay it on time, which is harmful financially and detrimental to your credit score.
The key to getting a credit card understands its risks and benefits, not your age or stage of career. There is no perfect time for you to get your first credit card. To ensure that you can use cards effectively and avoid financial mishaps, it’s important to understand the basics of how credit cards work and cultivate financial discipline. As long as you’re disciplined when it comes to repayment through various modes such as RBL credit card bill desk (In case you own RBL credit card) and manage borrowing responsibly, a credit card can be a useful tool in managing your finances