The credit card has gained a lot of popularity all around the world. Every 8 out of 10 people owns a credit card and it has completely revolutionized the concept of paper money. It is easy and safe to use, you can carry it anywhere and make payments using it anytime. The banks offer a bundle of benefits on credit cards that are hard to ignore. You can find a vast variety of credit cards covering Lifestyle credit cards to Travel credit cards. You can choose a credit card that fits your requirement be it an entry-level credit card or super-premium credit card. There are several benefits of a credit card, a few of them are discussed hereafter.
7 Benefits of Credit Card you should know:
Rewards: With a credit card you can earn a lot of reward points which can be redeemed afterward for purchasing gifts and vouchers. The reward rate differs from card to card. Some credit card entitles you to enjoy reward points as welcome benefits and on achieving a milestone too. You can earn reward points on online/offline shopping, utility bills payments, traveling, etc.
Cashback and discounts: There are credit cards that offer you exciting and exclusive discounts and cashback. The earned cashback can also be redeemed for purchasing gifts and vouchers and also towards clearing credit card outstanding. From fuel surcharge waiver to online shopping you can earn discounts and cashback. There are entertainment credit cards that offer buy 1 get 1 free offers on movies and other exciting discounts on dining.
Travel in Style: On credit cards, you get travel benefits like domestic and international lounge access. Apart from this you also get priority check-in and boarding, extra luggage allowance, etc. They make your traveling experience more pleasant.
Insurance: Some credit cards also provide you extra benefits like accidental death insurance cover, zero card loss/theft protection, travel, and luggage insurance, etc. You get these pre-approved insurance benefits along with your credit card depending on the credit card you are vouching for. On these insurance benefits, you don’t have to pay any premium.
Expense Tracker: You can keep a track of your expenses easily through credit card statements. You can check any past transaction hassle-free with this feature.
Safety: One of the benefits of using a credit card is that it is very safe to use and carry. Even if your card gets lost you can get it blocked and don’t have to worry about the misuse of your credit card.
Building Credit: Credit Cards are a great way to increase or improve your Credit score. If you have a bad credit history then you can improve it by clearing all the dues. You can start building your credit history by taking a secured credit card or entry-level credit card.
Bottom Line:
Credit Cards are the best option to make payments in the fast-moving world. You can accrue the most benefit out of it by using it responsibly and sensibly. All your credit card information and account information stays confidential and using 4 digit pin you can make the payment within seconds. You get various offers and discounts on credit cards. It helps in building your creditworthiness, if not used properly it can lead you to a debt spiral. It has its own pros and cons so be very cautious while using it. You also get a limited interest-free period in which you can borrow and use the funds without having to worry about the interest charges. Before the interest-free period is completely used up it is advisable to either pay the entire amount or a minimum amount of the due balance.