Must Read 5 Major Advantages of Credit Card Why You Need One

From luxury to a necessity, credit cards have come a long way since they were first introduced in India. Not only have they made the online shopping experience a breeze, but the advantages of credit cards such as cashback, discounts, and other rewards make them a must-have in today’s day and age.

They also play a major role in maintaining a respectable credit score. Of course, one must at all times remember that credit card transactions are essentially loans that the credit card holders must repay in time. Therefore, when used responsibly, credit cards are convenient financial tools that can pave the way towards financial freedom.

What are the advantages of credit cards?

Having a credit card can be extremely beneficial in the long run. But to truly benefit from the various advantages of credit cards, it is important to understand the ways in which they can prove to be helpful. Here are some common advantages of credit cards and the reasons why you need one, right away:

  1. Cashback

 

The cashback feature has always been an important USP when it comes to credit cards. So much so that today, there are specific credit cards available in the market that offer just one benefit – cashback.

It is an incentive offered by the credit card issuers in which the users are refunded a certain percentage of the price of the product after making the purchase. And although this percentage might not prove significant for a single purchase, in the long run, it can add up to considerable savings!

 

  1. Reward Programs

 

Another unique advantage of credit cards is the rewards program. When you use your credit card to make various purchases and payments, you are awarded reward points. Once you have accumulated a certain number of points, you can redeem them in exchange for various benefits such as discounts and cashback on future purchases.

Several credit cards offer travel benefits such as discounted flight tickets, lounge access, movie tickets, dining offers, etc. When you choose a credit card, it is highly recommended to check their reward programs to check whether the rewards that they offer suit your needs.

 

  1. Secure Transactions:

 

As the popularity of online transactions grew, so did the possibility of falling prey to online frauds. However, using credit cards can protect you against fraudulent activities online. When compared to a debit card, credit cards offer a higher degree of safety.

Additionally, credit cards such as the Bajaj Finserv RBL Bank SuperCard offer superior protection against cybercrime threats with features such as in-hand security and zero-fraud liability cover. This means that every time you swipe your card or use it to make online payments, you can rest assured that you and your hard-earned money are safe and secure.

 

  1. Build Credit

 

If you have recently started earning and you would now like to build your credit, credit cards are a sure-shot way to do that. Using your credit cards responsibly can help you build a credible credit history and a higher credit score. This is crucial as these factors play a big role in determining your eligibility for availing of financial assistance in the future.

However, this is a double-edged sword that one must walk carefully. Irresponsible use of credit cards such as excessive usage, delayed bill repayment, etc., can land you in debt and negatively impact your credit score.

 

  1. Global Acceptance

 

Certain international transactions cannot be completed using debit cards. For example, international transactions such as booking a hotel room abroad, renting a car, or even paying for international shipping, etc. One major reason behind it is that oftentimes these merchants are of the final value of the transaction, especially if there are chances of damages. In such scenarios, they can block a certain amount on your credit card which protects them from unanticipated costs.

Credit cards are more universally accepted in this regard, and they provide you with the freedom to make purchases and payments as and when needed.

 

  1. EMI Option:

 

If you need to make a major purchase, say for example a large appliance or furniture but you don’t want to burn a hole in your savings, you can always opt for the EMI route if you hold a credit card. This is by far one of the biggest advantages of credit cards. By choosing EMI facilities, you essentially break down one big amount into easy monthly installments and conveniently pay them bit by bit, each month.

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