Carrying a credit card is common these days and has become an important part of our financial life. Some consider it as a status symbol while some consider it important for their day to day purchases.
Well, one of the best things about having a credit card is the ease that you get to purchase essential or even luxury items even when you don’t have money to buy them. But, irrespective of all these there is always a debate going on whether to have a credit card or not? Some love it for the great benefits while others believe it can lead to debt.
The fact is- a credit card can be best when managed properly and carefully. To make your decision easier here are some benefits of using a Credit Card. After reading this it will be easier for you to decide whether a credit card is good to have or not.

 Benefits of using Credit Card 

Easy Access to Funds

One of the biggest advantages of having a credit card is the easy access to funds. Credit cards are basically an account with a bank, where you get a pre-approved upper limit from which you can borrow anytime you want. All you need to do is swipe your card. This means by using your card you can pay for your purchases later. So, you don’t have to worry about any of your purchases even if you are out of money.

The Rewards you get

Many credit cards offer rewards to their customers, these rewards hold a lot of value as it has the potential to reduce the cost of your future purchases.
But there is one important thing which you have to be aware of, that is about the various reward programs offered by your card and how to use them. So, while selecting your credit card do check for the reward programs as well, compare it with various credit cards available in the market and then opt for a particular one.

Some rewards can be spent on flight tickets while others can be spent on petrol purchases, groceries, and shopping. So choose the card which can provide maximum benefit to you depending on your uses.

EMI Facility

On the off chance that you are planning to make a big purchase that too without affecting your bank balance, then going with a credit card is the best option for you. A credit card offers you an EMI facility using which you can buy costlier things in one short without disturbing your monthly budget or account balance. The fund used through credit cards can be repaid through monthly installments (EMIs). However, you need to pay some interest on the money used if not repaid in the interest-free period. 

Opting for EMI makes it more convenient for the buyers than taking out an individual credit to pay for a big purchase. 

Worldwide Acceptance

Worldwide acceptance is one of the biggest benefits of having a credit card. Generally, when you travel abroad, you have to convert your currency into foreign exchange. But when you have a credit card there is no such trouble. You can pay your bills and make all your purchases using your credit card anywhere in the world. Credit cards are commonly accepted modes of payment across the world. This makes your traveling around the world convenient as you don’t have to worry about the currency anymore.

Helps you Improve Credit Score

Your CIBIL is the reflection of your financial health and, lenders check your credit score every time you apply for a loan. There are high chances that your loan application will get rejected in case you have a poor CIBIL score. In a situation like this, a credit card can act as your financial assistance to improve your CIBIL. 

So, if you are planning to take a loan shortly, first check your CIBIL score, if it is below 700, start using your credit card for day to day purchase. Most importantly, don’t forget to pay your credit card bill on time. Doing this will have a positive impact on your CIBIL score as lenders will report all your transactions and payment made towards it to the credit unions. 

Interest-free period

Several Credit cards come with an interest-free period, this is a time during which you will not be charged any interest on your outstanding credit. Generally, this interest-free period ranges from 45-60 days depending on the terms and conditions of the credit card provider.

This basically means you will not be charged any interest for a short-term credit if you pay off the entire over standing amount by your credit card bill payment date. 

Record your Expenses

Whether it is through debit card, cash, UPI or net banking we spend a lot of money in our day to day life which goes untraceable. This is one of the reasons most of us exceed our monthly budget and disturb our finances.

But if we make a habit of spending everywhere through our credit card (except the miscellaneous one) our expenditures can be tracked and can be improved if paid attention.

When you use a credit card responsibly, there is nothing to be worried about. Moreover, if you use it properly it will provide you enormous benefits and savings that come with it. But always remember- Never use it unnecessarily, avoid overspending and be timely for the bill payment. Follow this and you will notice credit cards are beneficial. 

Benefits of Using a Credit Card
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Benefits of Using a Credit Card
Still, thinking to go for credit card transactions or not? Read this Finance Buddha blog to know the various advantages associated with a credit card and decide yourself whether a credit card is right for you or not.
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Finance Buddha
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