A credit card can be an extremely useful financial tool for users if used responsibly. There are a great many reasons credit cards should be used instead of cash. It offers convenience and is great for your financial well-being.
Want to know more about Credit Cards? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial product.
Let’s explore the reasons why credit card have become immensely popular and are used by a large number of individuals:
Now you do not have to carry cash or go through the hassle of carrying change to make payments at retail or grocery stores. A credit card is meant to give you the freedom to pay bills instantly and thus ease the process of bill payment. Thus credit cards enhance the safety of your money as you no longer need to carry cash.
See Also: How to Increase Your Credit Card Limit?
As an introductory offer many credit card issuers offer sign-up bonuses. Usually, you have to spend a certain amount to avail of the introductory offer. So be careful and read the fine prints before enrolling for a credit card. However, it is an invaluable perk.
Credit cards also offer cashback points that make it an attractive option for subscribers. It allows subscribers to earn some money back on their expenses. The cash reward offered is generally a percentage of your total purchase. Over time these rewards and cashback points add up to give a significant bonus that can be redeemed at select retail outlets.
See Also: How to Apply for Credit Cards Online?
There are additional rewards programs as these are credit cards. The trick is to find a credit card that suits your spending habits or find a card that partners with a retailer you like. Reward program can include:
One of the key advantages offered by credit cards is that it offers a high level of security when it comes to transactions. For example, if your credit card is stolen and you find some suspicious activity on your stolen card then you won’t lose cash right away as credit money comes in the form of the cash advance. Once you notice this to your credit company, they will put your card on hold and investigate. As soon as you report the crime, you will no longer remain liable for fraudulent purchases in the meantime and therefore you won’t lose money.
The money spent on a credit card works similar to a loan. Credit cards levy zero-interest on purchases for a period of 30 days. The money on credit card is borrowed in the form of cash advance which means you do not need to pay funds immediately unlike debit cards. The grace period offered works in your favor and if you repay the bills within the grace period then you save the finance charges as well as make a positive impact on your credit score.
You must check the insurance protection offered by your credit cards while you enroll for one. You will come across various offers and coverage that you didn’t know you had. Also, some credit cards offer extended warranties on electronic goods or furniture and purchase protection. Other insurance that is offered by credit card issuers is travel insurance, rental car insurance, etc.
A credit card is a must-have when you take international trips. Credit cards are accepted worldwide and thus it can prove to be quite handy when you are on foreign land. Booking hotels and renting cars become much more convenient with a credit card.
These are readily accepted worldwide and thus credit cards have the potential to make your travel experiences hassle-free.
Credit cards are an important tool that serves to repair and maintain your credit score. The financial transactions conducted using your credit card is an important factor that impacts your credit score.
The credit usage is reported to credit bureaus by your bank. This is the reason you must always keep your credit utilization ratio below 30% of your credit limit. Also, repaying your credit card balance on time helps to improve your credit score immensely.
A balance transfer is a facility given by credit card issuers where the subscribers can move the debt of one credit card to another. The balance transfer allows you avail of an introductory offer on a new credit card where you are not required to pay interest on the outstanding balance for a specified period. Also switching to a lower interest credit card can help you save money in the long-run. A balance transfer can also help in consolidating your debts and make your life easier. However, you still have to pay back what you owe.
You May Also Watch
Keep your Financial Cognizance up to date with IndianMoney App. Download NOW for simple tips & solutions for your financial wellbeing.
Have a complaint against any company? IndianMoney.com's complaint portal Iamcheated.com can help you resolve the issue. Just visit IamCheated.com and lodge your complaint. If you want to post a review on any company you can post it on Indianmoney.com review and complaint portal IamCheated.com.
Be Wise, Get Rich.
This is to inform that Suvision Holdings Pvt Ltd ("IndianMoney.com") do not charge any fees/security deposit/advances towards outsourcing any of its activities. All stake holders are cautioned against any such fraud.