Producer:  Priyanka Das Editor: Manuj Yadav

5 Amazing Benefits of Using A Credit Card

Credit cards, once seen as an instrument to meet financial emergencies, have become a part of the daily lives for many people.

The ease of use and the hassle-free payment options make the credit cards convenient for many financial transactions like routine purchases at grocery stores and more.

The additional offers and discounts also make credit cards more lucrative for many users.

The credit cards come with a predetermined limit and the amount used should be paid back with the due date. Generally most of the credit cards come with a free repayment period of 30 days within which you can make the payment without any additional charge.

A credit card comes in handy when you do not want a large sum of money to be debited instantly from your account. This helps you defer your payment. In addition, you can choose to pay off your purchase in equated monthly instalments (EMI) to avoid paying a large sum at one go.

Most credit cards come with a slew of offers to encourage users to increase their transaction. These can range from cashback to rewards points accumulated each time you swipe your card. These are redeemable and can be used for further purchases.

Credit cards allow banks to record data about your spending and view your active credit history based on card repayments. This information will be crucial for banks and other financial institutions to assess a potential loan applicant’s eligibility for loans and other financial instruments.

Many banks also issue travel credit cards. These offer lucrative discounts on flight tickets or hotel accommodations. These also help if you are traveling abroad, as they come with zero foreign transaction fees. In most cases, they also have insurance coverage for accidents while traveling as well as for lost luggage.

In some ways, the monthly credit card statements give us the details of our expenditures and prevent us from spending more than what we can repay. Additionally, you do not have to carry a lot of cash at any given point in time, and it is also a widely accepted mode of payment globally.