What Are The Benefits Of Having A Credit Card When You First Start Working?

Credit cards have become an essential part of our life, and we cannot deny that they have transformed lending in India. It feels like a milestone in one’s life to get a credit card. Nothing gives you a more mature feeling than reaching into your wallet and taking a piece of plastic bearing your name. Applying for a credit card gives you the benefit of using it for all purchases, including internet purchases, restaurant delivery, and supermarket shopping. Credit cards are practical and can enable significant financial savings for you. 

What are Credit Cards?

A credit card is a credit facility that banks offer consumers to enable them to borrow money up to a pre-approved credit limit. Customers can use it to transact in the purchase of goods and services. Banks give customers 40–50 days as a grace period to settle their bills. Every person has the essential criteria to apply for a credit card when they start their first job. The card company determines the credit limit depending on factors such as annual salary and credit score, which the credit card company also determines. One should always check CIBIL score before applying for a credit card.

Benefits of Having a Credit Card

There are several benefits of having a credit card as soon as you start your first job. Some of the benefits are as follows:

Used when You have Fewer Savings

One of the advantages of using a credit card is that it allows customers to spend money they do not have. As a result, if you have little money saved up, you can use a credit card. To get a credit card, one needs to have a good CIBIL score, so check CIBIL score today. It is useful when you lack the necessary cash to make a transaction or take care of an emergency. Additionally, it provides a 45-day grace period for repayment. As a result, even with fewer savings, you are prepared for any situation.

Build a Good Credit Score

A credit score or CIBIL score is a rating that represents how well you handle debt repayment. Before approving you for a loan, financial organisations and banks check CIBIL score. The likelihood of obtaining a credit card or loan increases with the credit score. The credit score criteria include debt payment history, number, kind, and term of loan accounts owned, as well as current credit utilization. A high credit score gives you more negotiating power, enabling you to constantly demand the best prices and services. Nowadays, many banks and NBFCs give clients with high credit scores a cheaper interest rate. Additionally, you can access a greater range of deals if your score is high.

Credit Card Rewards, Cashbacks, and more

Credit cards provide additional perks to their clients. Several discount offers, cashback, and reward points are offered on transactions that are not offered in other financial instruments. Every purchase made on credit cards entitles the owner to one or more points. Many reward credit cards offer extra points for specific purchases, such as dining out, shopping, or fuel. Check CIBIL score to know your eligibility for the reward credit cards. Through the credit card company’s online rewards site, points can be exchanged for travel, gift cards to shops and restaurants, or merchandise after reaching specific earning levels.

Understanding of Financial Responsibilities

Being mindful of your expenditures and regular repayment of debts helps create a balanced financial situation. A responsible credit record helps to preserve a strong credit score, which opens the door to better chances in the future. To determine its overall value, you must evaluate the benefits and drawbacks of using your credit card whenever you are considering purchasing. Responsible credit card usage is an important financial skill that will help you manage your finances more effectively. You also get into the habit of regularly checking CIBIL score to avoid any negative remarks. With a credit line at your disposal, you should first learn how to curb your predisposition to overspend.


While there are numerous great reasons to obtain a credit card, this is not a choice to be made hastily. Having a credit card has long-term effects, and sometimes those effects are negative. Credit cards come in handy when one does not have sufficient savings to cover a financial emergency. They also offer numerous discounts, rewards, and deals to enjoy. Credit cards help you build your credit score, which you can check on the CIBIL score app. Once you receive a card, handle it as though your future financial status depends on it. 

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