Showing posts with label why you use credit card. Show all posts
Showing posts with label why you use credit card. Show all posts

September 21, 2018

Published September 21, 2018 by with 0 comment

7 Reasons To Use Credit Card

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A credit card gives you credit of maximum 50 days from the bank without any interest. You can use a credit card for your daily routine expenses. Here are shown 7 Reasons why you should use a Credit Card.

1. Reward Points 

When you pay through credit card you earn reward points on your spending. Many Credit card rewards work on a point system. Banks offer a wide range of rewards points to consumers for their credit card spends. Credit card rewards options are almost endless. 

However, to make the best use of cards benefits, customers should take cards whose reward point or benefits structure suit with their lifestyle and spending pattern. You can redeem the reward points to earn gift vouchers or products from reward catalog. You get the list of card offers in the different bank. Reward points have a validity. So, you should use points before expired.

2. Cashback/Discounts

The cashback on credit card was discovered by the United States. The idea was simple: Use the credit card and get 1% of your balance refunded regardless of what you bought or where you bought it. Today, the concept has grown and matured. Different company credit card has a different purchase cashback offer. 

The cashback is depended on your purchase of the product. Nowadays, cashback offer varies on your card. When I purchase my iPhone 8 plus, I got 10% cashback. Consumers who spent more on fuel per month they can buy fuel credit card and get cashback. Also, consumers depend on spend they choose travel card, shopping card, movie card, restaurant etc. They can choose base on their lifestyle and get more discounts.

3. Enjoy the interest-free period

Credit cards offer you interest-free 50 days credit periods. If you make the repayment within the billing cycle + grace period, you enjoy interest-free periods. You spend the money with the credit card throughout the entire month. After that bill is generated and you get another 20 days to repay the credit card bill to the bank. One month and 20 days repay period making 50 days period. This is very useful if you are making big purchases.

You can purchase any product and pay after bill generated. With this credit period, you are also saving some amount on your purchases. If you are purchasing a big ticket item such as an air conditioner, a television etc. you can save by paying through credit card.

4. Build a Good 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 bureaus like CIBIL. So, Credit Card disciplined usage is good for financial health. Paying using credit cards are just like loans. Repayment of credit card dues has the same effect as repayment of loans dues. 

If you pay your credit card bills on time, your credit score will improve gradually. A good credit score is key to be eligible for future loans that one may need to fulfill your life goals like buying a house or to tackle financial emergencies. You can get loans easily in the future. On the second hand, if you do not pay your credit card bills on time, your credit score will do down. 

5. Easy EMI Facility

One of the biggest advantages of using the credit card is it helps you convert big purchases on EMIs to ensure your finances are not stretched beyond control. Tenure of such EMIs is in the range of 3,6,9,12 months. Credit card companies have tie-ups with merchants, to offer the EMI facility on purchases made through their 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, fuel transactions, cash transactions. Many customers are using credit cards to finance their vacation abroad on EMIs.

6. Emergency Source of funds

When you have an emergency of money, credit cards are good for your financial emergency. If u forget to cash in your wallet, you can swipe your card at the shop.

7. 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 who have 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 processed 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. 

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