Saturday, June 3, 2023

Thinking of Applying for a Credit Card?

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There is no doubt in the fact that credit cards are an indispensable financial resource in modern times, using which you can fulfil your emergency and monthly expenses, even when you don’t have the cash to pay for them.

However, despite being a blessing, credit cards can also be a bane if misused or not paid back on time. The interest levied by credit card providers on long-term credit card balances can be pretty high.

So, it is wise to consider your income, financial health, and ability to repay before you apply for credit card. Financial Institutions have multiplied over the years, and each one is offering lucrative and competitive services. Today, there are credit cards available for low-income groups, and you can easily avail of one if you meet the basic eligibility criteria, which may vary for different card types and service providers.

Here we shall try to focus on what are the important benefits of having a credit card if you have a minimum salary, and we will also discuss the risk factors associated with such credit cards.

Know the Benefits of having a Credit Card with a Minimum Salary Requirement

The benefits of having a credit card with minimum salary requirements are many. Some of them are:-

Financial Support

The best feature of a credit card for low-income groups is the ‘Buy Now Pay Later’ option. The first and foremost benefit of owning a credit card with a minimum salary is that you have easy access to extra funds. You may have to face certain financial emergencies, and your bank balance or paycheck may not allow such a hefty expense. In such cases, a credit card comes to your resume. You can repay the credit card provider either through EMIs or a lump sum payment as soon as you have the arrangement.

Build Your Financial Strength and Credit Score

A credit card can help you build your credit history. If you are good with your payment cycle, clear your dues on time, and are smart enough to stay within your credit utilization ratio (CUR), you are sure to see a steep rise in your credit rating. This helps you build your financial health, and you can easily get another loan/credit because of your good credit score.

Rewards and Offers

Yes, your minimum salary credit cards also come with certain rewards and offers in the form of cashback, reward points, and discounts. The nature of rewards and offers differs from one financial institution to another. But getting such rewards and deals helps you indulge in exciting and money-saving purchases.

Interest-Free Period

As discussed earlier, the buy now pay later feature of credit cards is one of the most alluring benefits. Along with this, you get the advantage of an interest-free period, which generally ranges from 45 to 60 days. During this time, no interest is charged on your outstanding credit card balance. So, if you keep track of your credit card payment dates and make regular payments within the deadline, you can enjoy the credit advance without having to pay any charges.

Keep Track of Your Expenses

When making purchases using a minimum salary credit card, you generally stay conscious of your purchases. With the facility of online apps and instant message tracking systems, you can keep a constant check on your expenses and manage them 24/7 at the click of a button.

Risks of Having a Credit Card with Minimum Salary

Here are some risks associated with minimum salary credit cards:


Maintaining a minimum salary credit card could also mean falling into the debt trap. Having a card that allows you to purchase anything you want now without having to part away with your hard-earned money right away is lucrative and enticing. Many succumb to the pleasures of thrifty spending and then regret it later. The low salary earned may not suffice to pay the entire purchase amount in one go, so eventually, you end up paying a large sum as interest.

Not Paying Dues on Time

Paying credit card dues depends on when your salary/income is credited to your account. You may have other expenses to cater to, other financial obligations, or emergency expenses. Failure to pay the credit card amount within the due date timeline may invite certain penalties and high charges for missed payments. Some people often get confused between minimum payment and full payment. So, instead of helping with your finances, credit cards can end up adding to your financial burden if not used with complete diligence and knowledge.

Also Read: Minimum Amount Due in Credit Card


You must use your minimum salary credit card wisely, preferably only for emergency or mandatory expenses, instead of paying for luxuries. Check if you fit into the definition of eligibility and earn the minimum salary for credit card application. Once you get your credit card based on your minimum eligible salary, the rule is to be organized and disciplined.

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