It must provide this to millennials because they can expect it when they build startups, enter the gig economy, and enter the market. Millennials account for about 34% of the population of India and 46% of the population of 440 million. On the way to growth, we all have experienced two global crises: economic recession and pandemic. Although most of us know the formula for smarter spending, increasing income and optimizing money, life often complicates this recipe.
For this reason, more and more millennials are adding an important tool to their spending plan loans. According to data from the credit card company CRED, in 2020, Indians use credit cards to spend more on groceries, shopping, and utilities, while spending on travel and entertainment has declined. They scanned the consumption of 1 million members in major cities in India.
Suppose you have a medical emergency and need money urgently. On the contrary, will you break the FD or touch your credit card and convert the bill to EMI for a smoother return? Yes, the latter variant makes the most sense because it acts as a short-term loan, which can be repaid in part or in full later.
Who doesn’t like rewards and cashback now? Credit cards provide great discounts, bonus points and cashback for every rupee spent, which you can use to make purchases in the future. To some extent, this triggers a cycle of savings and offsetting expenses. These points can be redeemed for movie vouchers, dinners, household appliances, and even air tickets. Just select a reward according to your consumption or preference and save it.
Do you already know the term “credit score”? This is like your financial health certificate, showing your ability to handle money. Your credit rating determines your credibility. Creditworthiness makes it easy to apply for any of these options and depends on many factors, including the individual’s payment history, loan type, length of credit history, and total debt. In order to maintain good credit and financial stability, you need a credit card.
When considering the long-term benefits of owning a credit card, one of the best benefits is that it can keep you busy with financial planning. You can use monthly reports to track your expenses and understand your focus and consistency with money and life goals, which can improve self-esteem, especially among young people.
Read More: Investment and Saving tips for beginners