While they’re powerful, ubiquitous financial tools, credit cards can wreak havoc with one’s personal finances if not used wisely. As such, many people are somewhat justifiably suspicious of credit cards, viewing them as a necessary evil. However, credit cards are more than a means of transaction - they can be a powerful ally in building your creditworthiness. With a credit card like the Bajaj Finserv RBL Bank Credit Card, considered one of the best credit cards, you can improve your credit score while being rewarded for every swipe.
Credit scores summarise your reliability as a borrower. Expressed as a three-digit number ranging from 300 to 900 in India, credit scores from credit information companies like TransUnion CIBIL and Experian allow creditors to assess risk when you apply for credit. An excellent score of 750 or higher can open doors to lower interest rates, longer tenures, and favourable terms. Conversely, credit scores closer to 300 are considered poor and can severely restrict your ability to access credit products.
Many people struggle to improve and maintain their credit scores due to a gap in knowledge or poor financial habits. However, the right credit card can make a huge difference.
#1 Timely repayments
Several factors determine your credit score, among which your repayment history has the highest contributing weightage of 35%. Delayed payments and defaults damage your score, whereas consistently punctual payments improve it. Bajaj Finserv RBL Bank Credit Cards offer autopay features that allow you to stay on track. Plus, with the ability to transform your high-value purchases of Rs. 2,500 or more into manageable monthly payments, this card provides ample opportunities to build a positive repayment history.
#2 Optimising credit utilisation
Another crucial factor, accounting for 30% of your credit score, is your credit utilisation ratio. It indicates the percentage of your available credit limit that you’re using. Financial experts concur that keeping your credit utilisation below 30% is recommended as it reassures lenders that you’re not overly reliant on credit and can manage more debt. Use your Bajaj Finserv RBL Bank Credit Card regularly, pay off your credit card bills on time, and avoid carrying balances to demonstrate responsible credit use.
#3 Diversifying credit mix
Lenders favour a diverse credit portfolio. Adding a Bajaj Finserv RBL Bank Credit Card to your existing credit types (like secured and unsecured loans and other cards) can improve your credit mix. This co-branded credit card stands out thanks to its numerous cost-saving features and benefits that offer flexibility in credit management.
#4 Building a longer credit history
The length of your credit history matters, comprising 15% of your credit score. Lenders like to see an established track record of responsible credit management. Bajaj Finserv RBL Bank Credit Cards encourage long-term cardholding by offering annual fee waivers when you meet spending thresholds per your card variant. You can build a solid credit history over time by keeping your card account active and in good standing.
#5 Managing credit enquiries
Each time you apply for a credit product, it results in a hard enquiry on your credit report. When there are too many hard enquiries within a short duration, it can significantly hurt your score. Share your mobile number to check if you have any pre-approved offers when applying for a Bajaj Finserv RBL Bank Credit Card. This reduces unnecessary hard enquiries, limiting the impact on your score.
#6 Maximising rewards
Your Bajaj Finserv RBL Bank Credit Card encourages responsible card use with its robust reward structure. You earn points on nearly every transaction, with accelerated earnings on online and international spending. Besides reward points, discounts and cashback on select categories can help you save further. When you use this card for everyday expenses and pay the balance in full, you can build creditworthiness while maximising rewards.
#7 Leveraging interest-free periods
The 50-day interest-free period on ATM cash withdrawals is an outstanding feature of the Bajaj Finserv RBL Bank Credit Card. A lifesaver in emergencies, it allows you to access funds without immediately accruing interest. When you use this feature judiciously and repay within the interest-free period, you avoid debt that could negatively impact your credit score.
#8 Regular credit monitoring
Keeping an eye on your credit report is crucial for maintaining a good credit score. Check for errors or fraudulent activity regularly in your monthly credit card statements so you can stay informed and safeguard your credit health. Additional benefits beyond credit score building
Your Bajaj Finserv RBL Bank Credit Card offers a host of other benefits beyond these eight ways to improve your credit score. These include concierge services, complimentary access to airport lounges for a touch of luxury during travel, and fuel surcharge waivers of up to Rs. 1,200 per year. That’s not all - for film enthusiasts, there are monthly discounts and ‘1+1’ offers on BookMyShow. These perks make your Bajaj Finserv RBL Bank Credit Card more than just the best credit card. It’s a versatile tool with which to enhance your lifestyle while building your credit.
Improving your credit score need not be a daunting chore. Your Bajaj Finserv RBL Bank Credit Card is designed to support your financial health, allowing you to boost your score while enjoying premium benefits. So, why wait? Download the Bajaj Finserv App or apply for credit card online via the official Bajaj Finserv website.
