You can gift your sister a Women Special Credit Card, which is not only loaded with exciting rewards for women, but they are also your sister’s first step towards a better credit management.

Rakshabandhan is just around the corner and people all over India are eagerly waiting for this festival which celebrates the unique bond between brothers and sisters. The brother vows to protect his sister in all conditions as she ties the beautiful thread called ‘Rakhi’ to his wrist. It is also customary for brothers to gift something to their sisters. Although, the market is full of beautiful Rakshabandhan gifts, sometimes it becomes rather difficult to select something that is not only unique but also practical.

A credit card is gift that your sister will remember always, as it is something that will last forever. It also gives her the freedom to use it as she wants. Today more and more women are finding themselves in challenging roles that they accept readily. It wasn’t long before when women were excluded from the financial matters of a family.

Now women are not only the bread winner, but they are also playing an active role in money management. A women special credit card is just the right step that your sister needs to enter the world of credit, investment and personal finance. It is also an excellent opportunity for you to let your sister know the importance of credit scores and how to maintain high score for a better financial future.

Since women are becoming more and more affluent today, they have found the freedom to spend their money for themselves and their loved ones. Therefore, several banks have taken the initiative to come up with credit cards with features focused to make it a rewarding experience for them. Some of the features include incredible shopping offers, exclusive discounts, rewards of grocery shopping and special healthcare offers, and so on.

Leading banks like HDFC Bank, ICICI Bank and SBI are now offering credit cards specially made for women. If your sister is a working woman, she might already have had the experience of managing her finances. As such, the gift of a women special credit card will be an excellent way to make her life a little bit easier and happier.

If your sister is not a working woman, you can gift her an add-on card. However, if your sister is not well aware of best credit card practices and credit scores, make sure that you educate her about the importance of maintaining a good credit score.

Here are the things that you should responsibly explain to her about credit cards and credit scores.

• Making timely payment on the credit cards prevents late payment charges which are hefty. It also helps in maintaining a good credit score.
• Making full payment ensures that credit card debt does not mount up to unprecedented amount. The interest rate on credit cards is very high. Making full payment ensures that her credit card does not accrue interest charges.
• Taking control of spending helps in making a budget and sticking to it. The expenditure should never exceed beyond the means.
• Credit score is an important factor that can affect her ability to procure further loans. Maintaining a high credit score is pertinent for availing any loan in future, whether it is a personal loan, new credit card, four-wheeler loan, home loan or any other type of loan.

Photograph: Kevin Beaty/Creative Commons

Note: Lead image used only for representational purpose

The author is a credit expert with 10 years of experience in personal finance and consumer banking industry and another 7 years in credit bureau sector. Rajiv was instrumental in setting up India's first credit bureau, Credit Information Bureau (India) Limited (CIBIL). He has also worked with Citibank, Canara Bank, HDFC Bank, IDBI Bank and Experian in various capacities.