The Bright Side of Having a Credit Card
The range of benefits that a credit card owner experiences provide enough reasons for people to opt for the credit card services once they become financially capable. Although this instant loan comes with its set of advantages and disadvantages, the ratio of pros overpowers the cons. Below is an extensive list of benefits of a credit card, including:
- Opportunity to build credit – By using the credit amount responsibly and paying it regularly without fail, is a sure-shot way of improving your credit score. You can start building your credit at young age also with the help of best credit cards for young adults.
- Convenience – Being an excellent alternative to cash, swiping your credit card anywhere reduces the trouble of counting the change and keeping track of your money. And now, with all the secure online payment gateways, you can enter your card details on the apps and pay safely for all your purchases.
- Rewards – Reward points are a common phenomenon when shopping with a credit card. If your card is associated with a particular shopping, travel website or retail outlets, you can be sure to be the first of their customers to get notified to avail the rewards. That could be offered either as a new customer or an existing loyal customer.
- Cash backs and discounts – From Amazon to Myntra, all the popular online, as well as offline stores, regularly put forth special discount prices and chances to earn cashback on a variety of their products for credit cardholders.
- Recurring payments – With the additional security of using a credit card, you can now set up schedules for all your monthly expenses like regular payment of bills and live worry-free of having to remember when to make the payment.
- Recharges and tickets – Another advantage of credit is that it enables you to pay for all your recharges and travel bookings online conveniently.
- Interest-free credit – An overlooked benefit of a credit card is that the credit you use from a credit card comes with an interest-free grace period. The grace period is the duration from the time you took the loan to when you repaid it.
- Fraud protection – Since the amount used from a credit card is a loan from the card company, it essentially becomes their duty to investigate and rectify any fraudulent transaction from your card. Meaning, your money remains safe, unlike in the case of a debit card fraud.
- Travel benefits –You can travel globally without worrying about currency conversions. With the payment for a travel booking done instantly with a swipe of a card, airlines and other travel service providers have started offering benefits such as frequent flyer miles and other privileges to customers who use credit cards.
- Additional Benefits – From extended warranty coverage, purchase and price protection, grace period, to a chance to get insurance coverage without premium, the advantages of credit cards is wide-ranging.
Shiv Nanda is a financial analyst who currently lives in Bangalore (refusing to acknowledge the name change) and works with MoneyTap, India’s first app-based credit-line. Shiv is a true finance geek, and his friends love that. They always rely on him for advice on their investment choices, budgeting skills, personal financial matters and when they want to get a loan. He has made it his life’s mission to help and educate people on various financial topics, so email him your questions at firstname.lastname@example.org.