Different credit cards provide distinctive features. They have different benefits. However, managing more than one card can be a challenge for many for their maintenance fees and several hidden charges. A free credit card is a solution for all these issues. One such card is the Kotak Dream Different credit card. It is a lifetime-free card with amazing perks and reward points.
Let us understand it in detail.
Why is having multiple credit cards beneficial?
Some argue that having multiple cards in your wallet can be stressful. It’s not hectic; having multiple cards is beneficial if you know which credit card schemes are right for you. Before discussing the types of credit cards you should have, let’s find out why we advocate having multiple credit cards in your wallet.
Credit limit: Each card comes with a credit limit, the amount up to which you are allowed to make purchases in a month. Having multiple credit cards increases your overall credit limit and gives you the option to increase your purchasing power.
More rewards: With multiple credit cards comes multiple reward point schemes. You can enjoy the reward points or cashback schemes to save more on travel, movies, grocery, fuel, and whatnot.
Better credit score: Make sure to use your credit cards responsibly and pay the bills on time. Eventually, your credit card management improves your credit score and makes you eligible for better schemes or loans.
Which types of credit cards should you have?
Now that you know that having multiple cards benefits your credit limit and score, you might want to know which cards are right for you. Kotak Mahindra Bank offers 29 different credit cards, and you might also be getting calls from many other credit card service providers. So the question is, which cards are the best? Let’s find out.
Reward credit cards: Reward points are schemes that encourage you to use your credit cards more frequently. With this, you can earn while spending on daily essentials. Make sure to have a credit card with the best reward point schemes.
Lifetime-free credit cards: Attractive reward point schemes usually come with a joining fee and an annual fee. So you should have at least one free credit card like the Kotak Dream Different Credit Card, which is lifetime-free.
Cash back credit cards: Your expenditure should also be a source of earning. So make sure you have a credit card with fantastic cashback schemes.
Co-branded credit cards: Some brands partner with credit cards that can benefit their loyal customers. Depending on your purchase, you can have a credit card that offers exclusive benefits like retail shopping, movie tickets, airline travel, or hotel stay.
When to use which credit card?
· Credit cards that give you reward points should be used for everyday purchases
· Students or housewives with no stable income or credit history can use FD backed credit cards to build a credit score
· Cash back cards can be used for travel or fuel purchases to make things affordable
· Co-branded credit cards are used when you purchase from the associated brand
How to get highly rewarding credit cards?
Most credit cards are issued based on your credit score. If you are not eligible or have a lower credit score, you can opt for free credit cards like kotak 811 dream different credit card.
Having multiple cards is beneficial for higher credit limits and better rewards. The most valuable credit card types are discussed in this post; make sure you have these in your wallet.