Credit Card gives you a pre-approved credit limit to use for daily expenses. This credit limit depends on your credit history & income. Credit Card provides different types of discount, offers & rewards points to customers.
But credit card has a grace period to pay the bills. That can be 45 to 50 days. I know, you are thinking “Oh! It’s easy to use”. No, it’s not so easy to use. If you fall into the credit card trap, you have to pay interest up to 38% which is too much high than a personal loan.
So, is it credit card give you benefits?
Let’s check out what are the benefits of credit cards in India…
The 7 Benefits of Credit Cards in India
1. Earn Extra Money
Yes, you can make extra money through a credit card. Most of the time credit card gives you different types of offers & rewards. You can easily earn rewards points & redeem these points to cash back, voucher, or other gifts.
Also, you can access online shopping deals, discounts on movie tickets & more. Collect the reward points for next time use.
2. Interest Free Period
This is one of the best benefits of using credit cards. If I give you some money and say to pay after 45 days, defiantly you will be happy. Credit Card gives you this feature. You can use the credit limit for 45 to 50 days and pay after this pacific period.
So, you can utilize the money for other purposes that have to pay after 50 days. I know, you love this feature.
3. Boost Credit Score
Credit Card helps to increase CIBIL’s (Credit Information Bureau India Limited) report fast. If you pay the credit card bills on time, your credit score will increase quickly. This will help you to apply for secured or unsecured loans.
Also, you will get a lower interest rate on different loan products if you have a good CIBIL score. But credit score can ruin if you not paying credit card bills on time.
Also Read: How to check CIBIL Score for free
4. EMI Features
Some time ago, I buy a mobile phone online, & I get an Rs. 1000 discount on EMI conversation. These are the great benefits of using credit cards. You can easily purchase large amounts of products and convert them to monthly EMI (equated monthly installments).
But you have to give some interest that is 8% to 14% per annum for EMI conversion.
5. Secure Payment
Credit Card is a fully secure payment process. These days different types of OTT platforms & online shopping are needed to pay. You can trust blindly on credit cards. If payment is not made, you can complain Credit Card Company easily.
Also, if you lost a credit card, you can easily block through apps or call customer care. So, your credit card is 100% secure.
6. Benefits of Travel
If you are a travel lover, a credit card gives you extra benefits. You can use lounge access at the airport free of cost. Yes, it’s true. But all the cards not giving this offer. You have to choose a premium credit card for this benefit.
The other benefits are discounts on hotel booking, car rental & dining. Use these features of a credit card.
Also Read: Slice Credit Card
7. Insurance Cover
As you know, insurance gives you a strong backup for your family. Most of the card comes with insurance coverage for air accident or other accident. It will depend on which card you are using.
The best part is you don’t have to pay an extra amount for this insurance. You will get this feature free of cost.