Search in Indianmoney's WealthPedia

Home Articles 5 Reasons To Use Credit Cards

5 Reasons To Use Credit Cards Research Team | Posted On Thursday, January 25,2018, 06:33 PM

5.0 / 5 based on 1 User Reviews

5 Reasons To Use Credit Cards



A credit card is plastic money issued by financial institutions like banks, which allow you to buy Now and pay Later. Even though the uncontrolled use of a credit card can land you in a loan trap, using it wisely has lot of benefits.

Want to know more on credit cards? We at will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. is not a seller of any financial products. We only provide FREE financial advice / education to ensure that you are not mis-guided while buying any kind of financial products.

5 Reasons Why You Need To Use Credit Cards

These are some of the benefits of using credit cards.

1. Credit Card Offers You the Easy EMI Facility

One of the biggest advantages of using the credit card, is it helps you convert big-ticket purchases like laptops into  affordable EMIs. Credit Card issuers charge for conversion to EMIs. Tenure of such EMIs are in the range of 3 months, 6 months, 9 months and 12 months. Usually, credit card companies have tie-ups with merchants, to offer the EMI facility on purchases made through credit cards.

Credit card companies and banks allow you to purchase a variety of items with your credit card via EMIs. But, most of the issuers do not give you this facility to make EMI payments for gold purchases.

2. Reward Points and Cash Backs

Credit card companies offer you attractive reward points and cash backs, if you make purchases with your credit card. This is done to promote regular use of the credit card. For instance, HDFC Bank gives 3 reward points for every Rs 150 spent using your credit card. Reward points which you get can be redeemed to purchase goods from partnered stores.

Credit card companies also provide you cash backs, if you use your credit card to pay monthly bills or to purchase certain items.

3. Credit Card Improves your Credit Score

Credit cards help you improve your credit score. Every bill payment made by you on your credit card, will be reported to credit information companies like CIBIL.

Paying using credit cards are just like loans. Repayment of credit card dues have the same effect as repayment of loans. If you pay your credit card bills on time, your credit score will improve gradually. This can help you avail loans easily in the future.

On other hand, if you do not pay your credit card bills on time, your credit score will do down. Never default on credit cards.

See Also: How To Calculate Cibil Score For Credit Card?

4. You Enjoy the Interest-Free Period

Credit cards offer you interest-free periods. If you make the repayment within the billing cycle + grace period, you enjoy interest-free periods. With credit cards, if you make a transaction today, you get 50 days which includes the grace period to pay the bill, assuming today is the start of your billing cycle. This is very useful if you are making big purchases.

See Also: How To Calculate Cibil Score For Credit Card?

5. Credit Card Offers you Instant Loan

Loan against credit cards are just like personal loans, but don’t require any documentation. This loan is offered to those with decent bill payment history and a good credit score. Even though the personal loan is the quickest option for availing loans, it requires time to process. Loan against credit card will be disbursed instantly. If you are looking for quick money, you can go for a loan against credit cards. Avail loan against credit cards, with interest on par or slightly higher than personal loans. Be Wise, Get Rich.

You May Also Watch

Iframe Content

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?'s complaint portal can help you resolve the issue. Just visit and lodge your complaint. If you want to post a review on any company you can post it on review and complaint portal

Be Wise, Get Rich.

What is your Credit Score? Get FREE Credit Score in 1 Minute!

Get Start Now!
Get It now!

This is to inform that Suvision Holdings Pvt Ltd ("") do not charge any fees/security deposit/advances towards outsourcing any of its activities. All stake holders are cautioned against any such fraud.