Benefits of Using the Credit Card
Last Updated : Sept. 27, 2019, 7:03 p.m.
Owning a credit card is surely one of the best feelings in the world. It makes you independent, and gives you the opportunity to shop for anything without having the cash in hand. Yes, credit cards with their numerous benefits and unmatched features have become the important part of everyone’s lifestyle. Almost half of the population is now solely dependent upon the credit cards to fulfill their varied needs of day-to-day life.
Whether it’s your grocery shopping, buying an expensive, branded sports car, or paying the dining bills, credit cards with their plenty of usage and benefits are widely used and popular these days. However, apart from these primary benefits, credit cards come with other monetary benefits that a credit card holder should be aware of.
So, this article shares with you the best of benefits associated with the usage of credit cards. Below are the distinct benefits:
Reward Points
Many banks these days come up with credit cards, and offer users reward points on using them. Usually most of the banks or lenders provide 2 reward points, if you spend Rs. 150. That means you will get one reward on every Rs. 75 that you have spent. You can collect these reward points in your account, and can redeem them to buy any favourite product of yours. But, always remember that you need to claim these rewards before a certain time as many banks allow you to redeem these points within certain period, after that your reward points will collapse.
Interest Free Credit
Credit cards also provide you the benefit of interest free credit, wherein banks usually provide you the 50 days period to pay off all dues. During this period the banks will not charge you with any interest. Beyond this period, you need to pay the interest to the banks. However, one thing that needs to be mentioned here is the fact that not for all the transactions, you get interest free-period. So, it is highly important for you to pay attention on the same before saying yes to your favourite credit card issuer.
Interest Free EMI
With credit cards also come the facility to avail the option of interest free EMI, wherein the customers can convert their purchases into free EMIs of 3,6,9 or 12 months. For example-If you buy one expensive item right after your billing, you can conveniently avail the 10 months interest free credit from the bank. Moreover, you need to be careful here as this thing is related to your substantial savings, especially when you buy some costly items after year, and can easily convert them into EMIs. Thus, with credit cards, you can avail the benefit of interest-free EMIs, and can easily buy an expensive product, which was earlier out of your pocket.
Cash Back
Cash back is another benefit offered by many credit card companies nowadays. When you use your credit card for various services like-shopping, booking air tickets and many more, you are eligible to get cash back on your card. With the help of cash back offer, one can definitely save substantial amount. This is the reason that number of credit cards users are increasing day-by-day as they help you to save a lot of bucks.
Let’s get more clarity on the same with the help of an example below.
For example- You book one air ticket online by using your credit card and get Rs.500 as a cash back. Now, if you travel say 5 times in a year, your total savings will be Rs.2,500. Thus, your credit card allows you to save money by providing the benefit of cash back.
Lucrative Offers & Huge Discounts
To grab the attention of many customers, banks now use the formula of providing lucrative offers and discounts on your regular purchase. Banks usually give you 2-5% discount on your many daily credit card payments . If you avail these offers, it will surely a benefit for you as you can save a couple of thousand every year.
Balance Transfer
With credit cards, you also have the benefit of balance transfer, wherein you can easily transfer your balance to another account. If you want to minimize your expenses, transferring the balance of your credit card to another account is surely the most effective way to make that happen. Through this way you can spend less as you have limited amount on your credit card, and can invest that remaining money somewhere else. However, one thing that needs to be mentioned here is the fact that while availing the balance transfer, most of the credit card issuers ask for a nominal fee, so be prepared for the same.
Add-on Credit
It is also one benefit offered by credit cards companies in which the primary card holder can share the benefits of his card with his loved ones. An add on card is an additional card through which the primary card holder can assign one particular limit for his close relative such as spouse, siblings, parents or children to use for various purposes from his credit limit.
Whereas, in some banks you have the opportunity to share the same credit limit on supplementary card as well. However, this benefit may vary from bank to bank as different banks have different set of rules, but it is surely a great benefit to avail.
Worldwide Accepted
One of the best benefits offered by credit cards is the fact that they come with worldwide acceptance. Yes, almost everywhere, in every country, credit cards are widely accepted. No matter which country you prefer to go, credit cards are easily accepted at almost every nook and corner of the world. So, if you are less with cash in hand, don’t worry as these plastic cards can save you, no matter where you are.
Quick Way to Borrow Money
Whenever you are in a hurry to get credit for any emergency such as marriage, medical expenses, travel and so on, credit card is definitely one of the quickest and convenient ways to borrow the money. Whenever you are in need, credit cards come as a saviour to you and allow you to borrow money any time, anywhere. It comes with a lot of convenience as the process is quite simple and easy, hence grabbing the attention of many credit card lovers to borrow the money to fulfill various personal needs.
