credit card

Top 6 Benefits Of Credit Cards – How It Makes The Most Out Of Your Money!

A credit card is a great financial device that can help you in numerous ways. From helping you keep track of what you spend to offering you exclusive benefits as a cardholder, credit cards are invaluable tools that many people rely on in their daily financial management. You not only enjoy the security that comes from having a credit card but also get to withdraw cash( with the addition of some extra charges) or make purchases at your convenience.

When used correctly, credit cards can be great for your personal finances. Some people think using credit cards makes you debt-prone. This is a myth that has been doing the rounds for years and should be thoroughly debunked. The only condition is, If a credit card is used incorrectly, however, it can become an enormous stressor and even lead to financial hardships. 

If you’re new to credit cards, you might be a bit overwhelmed by the credit card offers floating around you. But a credit card offer is just another piece of that thick, crusty bread that’s meant to pull you off the couch, throw on some pants and go out and do awesome things in the real world. If you are new to the world of credit, then using credit cards may be very new to you. There are numerous advantages to owning a credit card. Some of those advantages include, but are not limited to:

Build Your Credit Profile: Credit cards are very easy to acquire and can help you build a credit history. Banks and other financial institutions often use the information found on credit reports as part of a larger picture that helps them decide whether or not to apply for a loan. So it is quite essential for you to maintain a good credit line. 

No Hurry to Pay: The biggest benefit of a credit card over debit cards is that it cannot be directly linked to your bank account. That means you can carry a balance on credit cards and pay for them later as you do not need to worry about your current balance in a bank account.

Convenient to Use: Credit cards have become very popular in today’s era. Many merchants and retailers encourage their use due to the advantages they gain from them. At the same time, credit cards are also convenient to use for customers. Cashing out with a credit card takes at most just three seconds, which is clearly much faster than counting cash or paying via debit or check.

Safety: When it comes to managing your finances, safety is one of the biggest concerns. Utility bills and other purchases, when paid using a credit card, are guaranteed to be safe, both in terms of possession as well as product. In the event of a faulty product or any damages incurred to the item that was purchased from an online store or any other vendor or service provider through a credit card payment, you can file for a claim and get your cashback.

Rewards and Cashbacks: The best part is you can use these cards at your convenience and still be able to reap benefits from every purchase. Not all credit cards are the same. Some will allow you to earn more rewards, while others may give you benefits and discounts on everyday expenses, making your life that much more fun.

EMI Facility: You want to buy something expensive like a television or a laptop, but you don’t want to ruin your savings with such a large purchase. To solve this problem, you can choose to pay for the product using your credit card and make monthly installments toward the total amount. This is known as EMI and allows you to make large purchases without worrying about how much it will deplete from your bank balance.

In Conclusion

Ultimately, if you’re using your credit card for purchases you can comfortably afford, then there’s no reason not to use a credit card. The points and rewards you accrue just by using the card mean that you don’t have to pay full price when you shop. Paying off your credit card in full every month will also ensure that you don’t end up paying interest on a balance—and you’ll be in good shape if something goes wrong, too.

FAQs

Every Bank, NBFC, or any third-party platform has its own eligibility criteria that an applicant needs to fall in, to apply for a credit card. These eligibility requirements are mentioned on the official websites of these lenders. 

Your credit limit is the maximum amount of credit you can get on a credit card. Factors that can affect your limit are your profile and repayment capacity, as well as your credit report.

Credit card issuers and banks often offer rewards programs through which you can earn points to redeem rewards, discounts, and other perks. You may be able to take advantage of loyalty programs that reward your frequent purchases, or cash-back points that offer flexible redemption options.

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