A credit card is can be the best financial tool for when you are disciplined with your spending and pay off your card full amount every month. That can use your daily purchases like groceries, gas, and other goods and services.it can also help to purchase such as TV, laptops, and many other items because sometimes we do not have money for spending on these items.
If you do self-disciplined spending, then there are many advantages of credit cards that can make your life easier. Here we are discussed about the Advantages of credit card that makes your life easier.
Here the top reasons for using a credit card in India
Table of content
1. Signup Bonuses:
Many credit cards provide attractive offers for signup with them. Such as flight tickets for any special trips or best cheapest deal with brands (Gucci, Amazon…). sometimes card issuers offer thousands of dollars for news cardholders. For all these, you need to spend a specific amount through your credit card in your first three months.
Here all credit card is not giving you good signup bonus, before applying for credit card need to read terms and condition very carefully of that credit card provider companies.
2. Earn rewards and cashback
The main reason why people likes credit card is reward. And there are two main types of reward programs.
Credit Card Rewards: credit card reward you for every payment of any purchase. You can redeem these for existing gifts and vouchers such as flight tickets and free shopping.
It can be useful if you choose the right ones.
Cashback: the cashback credit card is very popular everywhere. Credit card cashback is firstly applied in the united states and response is very good everyone likes this concept. Now, in India there are some credit card gives offers 2%,3% and even 6% cashback for selective purchase. And many cards provide 5% – 10% cashback in festival offers like Diwali, Holi, New year, and Merry Christmas.
3. Less cash on hand
A credit card provides you instant money in case of an emergency. Mostly when we are going somewhere carried amount in the form of cash. If you are away from home and get stranded let at night and need to get a hotel room, you don’t have to worry about you have money cash on hand. A credit card is provided an instant solution to paying off many unexpected expenses when you dose note have time to transfer the amount through your bank account.
4. Increase your credit Score
A credit card can help you to improve your credit score. If you pay off the full balance of credit card every month it’s really helpful because credit card companies will report your payment activity to the credit bureaus.
A good credit score is a help too much easier to get apply many different types of loans
In future, such as car loan, Home loan and many more, So good repayment habit with credit card is the best way to build your positive credit score.
For Example, when you are applying for a car loan with a good credit score, the difference in an applicant with good credit history versus bad history could be thousands of dollars. Get a credit card and making payment timely is one of the best ways to make a good credit score.
5. Fraud Protection
The biggest advantage of a credit card is paying with a credit card is make easier to avoid losses from fraud. Credit card gives you $0 fraud liability guaranteed, that means you are never responsible for unauthorized purchase through your card.
If your credit card is missing or stolen, you are not responsible for any unauthorized charges after your card lost or stolen.
If your credit card lost or stolen or if you suspect your account has been used for fraudulent transactions. If you are any of these situations, make sure to contact your bank to reports the issues as soon as possible.
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6. Works in any Currency
Credit card doing automatic conversion, when you make any international purchase.
They are provided some of the best exchange rate as possible. By using credit cards you can save 8% – 10% comparing to exchanging hard currency.
And using credit card no need to do very popular method exchanging hard currency.
Most of credit card comes with no of consumer protection, people don’t know about that feature. A credit card provides many types of protection such as travel insurance, consumer protection.,
Consumer protection is the main part of the credit card. if you buy a product through your credit card and later find out the product is damaged or poor-quality product. You can return to the product and get the money back.
And credit cards also offer you an extended warranty of any electronics, furniture and many other products.
Travel Insurance – Credit card provides the insurance of canceled trips, lugged losses, and even death. And the coverage amount of travel insurance depends on your card which you have.
8. Tracker your Transection
Credit card maintains a record of your expenses with essential information such as when, where, and how much you are spending. It helps you to know, how much money is spending in a month.
This pays dividends when it comes to household budgeting and many more.
9.Zero Interest loan
Credit card companies offer you a 0% interest loan on his credit card for 30 days or less. A credit card doesn’t require you to have the funds for any immediate purchase. A credit card is best for you when you are using this very carefully which means when you pay off your balance in every month statement.
The zero-interest loan can be very effective when you add some other features of credit such as cashback, earn rewards, and many more.
If you are a well-disciplined person and you are not spending more than your earning, then a credit card is a very useful financial tool for you that you can use for your advantage.
10. Car Rental
Many car rental agencies are not allowed to rent a car if you don’t have a credit card. In some cases, can rental agencies also allowed debit card but may lock you’re a sufficient amount of money in your account until return the car.
That time you will not able to use those funds. Many credit card provides some additional liability insurance when you are going for a rental car. And debit card not so much.
A credit card may be a financial tool for you when you are very disciplined on your spending and pay off the amount of every month statement. As many of your purchase as possible to your credit card and debit card doesn’t. A credit card gives you more benefits of credit cards such as an award, cashback, and many more.