Gone are the days when people used to worry about carrying cash with them. With the advent of technologies and digitalization, there have been many advancements that have made our work easier at all levels. Times are such that people now prefer using credit cards, e-wallets and ATM cards to not only keep their money safe but also enjoy hassle-free transactions and shopping experiences. In recent times, the use of credit cards has increased manifolds such that you can find everyone around carrying credit cards along with them. So, here we are going to tell you why you must have a credit card.
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Credit cards are a type of financial tool that helps you purchase anything without thinking about whether you have sufficient money for it or not. Using credit cards provides you with instant access to a certain amount of funds. It is issued by different financial institutions and lets you borrow a set amount of money for your ease. Unlike debit cards where the money is deducted from your bank account, credit cards deduct money from the pre-approved money set by the respective bank. Credit cards are highly advantageous, so here we have listed some of the benefits of credit cards.
One of the main reasons why most customers prefer opting for credit cards is that it has strong buyer protection. With millions of shopping websites coming each day, it becomes very important to consider before you do the final payment. This is because there are chances that the company may be a fraud. However, using credit cards is safe as it protects you from such fraud. A credit card allows you the liberty to raise a complaint if your order has not been approved by the seller. The term used for this is, chargeback, and you cannot avail of this facility with a debit card. So, using a credit card becomes a better option in such cases.
It is a common tendency of credit card sellers to lure customers by giving them offers like cash back, reward points and air miles. It may sometimes seem fake to any of you. Right? However, availing of these points may be highly beneficial for you in the long run. Usually, you can save around 0.25% – 3% after availing of these benefits from a credit card. Not just this you can even earn air miles and sometimes get a chance to acquire free air tickets. Amazing, isn’t it? Well, then get a credit card for yourself.
Did you know that every credit card bill payment is reported to credit information bureaus like CIBIL? CIBIL or Credit Information Bureau India Limited is responsible for taking care of the credit scores of each individual. The credit score goes up if you pay your credit card bills or dues on time each month. A good credit score also helps in getting loans easily and even getting a new credit card. However, if you don’t settle the dues on time, the credit card score will rapidly decrease and affect a lot of things.
There are different types of credit cards and one of them is premium credit cards that provide you with a number of additional benefits. With premium credit cards, you can easily check in at the airport without having to stand in long queues. You can even get the benefits of staying at the airport lounges for free. This lounge access often provides you with complimentary snacks, a quick shower and many more benefits. So, why wait long, go ahead and get a credit card for yourself.
While planning a foreign trip, one thing that worries most travellers is the need to get your cash converted into the respective currency of the country you are travelling to. So, it is always better to use a credit card that helps you travel anywhere you want with the utmost convenience. You will just be charged with a nominal foreign currency mark up fee. For some premium cards, this fee goes even lesser. Moreover, the best part is that using credit cards gives you instant rewards through cashback and reward points.
Owning a credit card requires you to keep certain things in mind. So, we have listed some of the basic tips for you to handle credit cards in the best possible way.
The credit card issued by different banks has varied interest rates, fees and additional benefits. So, compare all the criteria of different banks and choose the one that suits your financial needs in the best possible way.
Keeping a number of credit cards may seem an alluring option. However, if you are a beginner or even not, then it is important that you keep only a limited number of credit cards so that you don’t have a lot of dues to pay at the end.
Setting up a high credit card limit means you are able to buy a lot of things. However, on the hind side, it is ultimately you who needs to clear all the dues. So, set your credit card limit depending on how much you can afford to pay.
Paying credit card bills during the set billing cycle period is always a safe option. If you don’t pay bills on time, then you may be charged with late fees. So, to avoid this it is better to settle all the dues on time before it gets too late.
Owing to so many benefits, it is right to say that credit cards have now become an indispensable part of our lives. So, avail the most out of credit cards and experience hassle-free transactions.
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Saumya Srivastava is a passionate reader who likes writing poetry. She is an avid foodie who keeps exploring new types of cuisine. Besides, she also has a strong love for literature.
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