A credit card is a useful tool for paying for products and services. You can also use a credit card online as well as offline. One of the key advantages of using a credit card over cash or a debit card is that you get a period of free credit. As a result, you can buy a lot of things without having to utilize your funds.
Credit cards come in a range of shapes and sizes, with features tailored to your specific spending habits and requirements. It’s important to understand the credit card benefits before deciding which one is best for you. Let us take a look:
Why carry lots of cash when you can pay with a swipe of your card? A credit card is one of the most convenient methods to pay for anything – no more counting change or writing checks; simply swipe the card!
Tip: Link your card to your digital wallet. Just scan and pay without having to carry the card in your wallet.
- Interest-free credit
A credit card has a grace period (up to 50 days) between purchase and payment during which the bank does not charge interest. This is a great example of buy now, pay later.
- Recurring payments
While credit card online buys are fantastic for one-time purchases, you can also use them to set up automatic payments for things like electricity, phone, and gas bills. There will be no more risk of forgetting to pay bills on time and incurring penalties or being disconnected.
- Recharges and Tickets
One of the most significant advantages of using a credit card over cash is the ability to use it to pay for a broader selection of online services. Credit cards are a convenient way to pay for almost all of them.
- Cashbacks and Discounts
Your bank credit card gives you access to a variety of Cashbacks and Reward Points, including fuel fee exemptions and amazing online shopping deals, especially with certain offline and online businesses. You earn rewards every time you pay with a bank credit card.
Remember: Exchange your points for fun gifts and vouchers like free shopping trips or even free airline tickets.
- EMI Payments
One distinct credit card advantage is the ability to purchase flagship items at low EMIs. When making a big purchase, you can break the payment into easy instalments. The amount can be paid back over a period that you specify.
- Credit Score
Individuals receive credit scores from organizations like CIBIL based on how timely they have paid their bills. Your credit score will improve if you use a credit card and pay it off on time. With a solid credit score, you’ll be able to get loans and credit cards more easily in the future. It’s one of the advantages of using a credit card that you can’t get with cash or a check!
- Expense tracker
Credit Card statements are an excellent tool to track your expenditures every month since it gives you an itemized record of your expenditure. It helps you get a clear picture of all your expenses and makes it simpler to plan your budget. Make sure you do not miss any fine print and understand what the different charges mean. In case of any doubts or discrepancies, get in touch with customer care.
- Travel in Style
With free access to premium airport lounges, expedited check-in and boarding, increased luggage allowance, and other perks, having a credit card makes travelling more enjoyable. You not only earn miles every time you swipe your card but can also avail of premium benefits.
- Extra Credit Card Benefits
There are also other advantages to owning a credit card. For example, you can receive accidental death coverage as well as fire and burglary coverage on products you’ve purchased. So, you get insurance coverage without having to pay a premium!
- Personalized Care
Most financial institutes offer proactive and efficient customer care that helps you at every step of the way. From your application status to any kinds of queries, you can always reach out to the 24X7 customer helpline. This assistance is indeed one of the key credit card benefits.
Credit cards have practically become a necessity in today’s world. A credit card gives you convenient access to low-cost credit, so you don’t have to wait for your next paycheck to buy what you want. Credit cards can also come in handy in times of financial emergencies.
These days, all or most of these credit card benefits are offered by different banks. However, when choosing a credit card, a prudent decision would be to check for the availability of all or most of these benefits and look for any hidden costs.