Credit card benefits: financial transactions through credit cards are common in today’s time. credit cards are being used for all kinds of purchases. this is a feature that, if used wisely, can be very beneficial. from movie tickets to car purchases, you can easily do it with a credit card. let’s know about the 10 benefits of credit cards.
1. Facility and Payment
through credit card, you get paid on just one swipe. you don’t have to count the cash or cut the check. if you have a credit card in your pocket, you don’t have to carry too much cash. you can link the credit card to the digital wallet if you want. through this, you can now make a scan payment from the wallet even without a card.
2. Ease of recurring payments
in addition to merchant shop or online one-time payment, you can also make recurring payments with credit card. for this, you can set your credit card automatically for payment. this will automatically make the payment of your phone, electricity or gas bill on time every month. the advantage of this is that there will be no default in making the payment, so that you will not have to pay any kind of penalty.
3. Ease of recharge and ticket booking
credit cards make it most easy for you to pay for online services. for example, if you have to book a flight ticket or recharge your mobile, you can still pay for them if you do not have enough balance in your account.
4. Benefits of interest free credit
credit card gives a grace period between purchases and payments. it can be up to 50 days. during this time, the bank does not charge you any interest. the advantage of this is that if you have to make a big purchase then you can easily do it. this is the most accurate example of the buy now and pay letter.
5. Rewards will benefit
pay by credit card, usually get rewards. you can redeem rewards for free shopping trips or free flight tickets such as gifts or vouchers. this is how you get saved.
6. Cashback & discounts
credit card offers discounts and cashbacks on various types of payments such as doing so. for example, many banks do not have to pay fuel surcharge on making a fuel payment with a credit card.
7. Expenses can be accounted for
credit card usage is also a benefit that you can keep track of your expenses every month. through the credit card statement, you will be able to know how much you are spending.
8. Keeping a credit card is safer
if you are traveling anywhere, it is safer to carry a credit card than to carry a huge amount of cash. if you steal or forget your credit card somewhere, you can complain to the bank and block it and make another issue.
9. Credit score is strong
Better use of credit cards also strengthens your credit score. Most people are not aware of this, but credit cards can increase your credit score. Institutions like CIBIL give credit scores to people. It depends on your payment history, how active you are about the payment. if you pay the credit card bill on time, It increases on your credit score. Good credit score will help you to take a loan easily on need.
10. Extra benefit
you also get many other benefits on a credit card. for example, in today’s time, almost every bank’s credit card gets term insurance or accidental death cover according to its category. there is no need to pay any separate premium for this. (note: this information has been obtained from the official website of hdfc bank.)