What are the Benefits of Using a Credit Card?

Credit cards enable you to buy various products including clothes, jewellery, home appliances, etc. even during the month end when you may face a cash crunch. Not only clothing and accessories, but credit cards can also be used for buying air tickets or fuel.

Most of the best credit cards in the market come with a grace period of up to 45 days, thus, giving users ample time for repayment. They also provide users with reward points, cashbacks, and special offers.

Here are some of the benefits you get with a credit card.

1. Reward points

Several credit card companies offer reward points as welcome gifts to cardholders. Users can also earn reward points with almost every transaction. These points can be redeemed for attractive discounts, cashbacks and gift vouchers.

For example, a user can earn reward points on purchasing airline tickets using an airline credit card.

2. Robust security for buyer protection

Security and buyer protection are one of the premier benefits coming with the best credit card. Companies enable the card holders to apply for a chargeback when the latter encounters an unauthorised transaction.

3. Easy shopping anywhere in the world

Credit cards enable customers to shop worldwide against a nominal fee, no matter what the currency is. Some companies also waive the charges involved in overseas buying, thus, making purchases more affordable.

4. Getting a loan

When customers apply for credit card, some companies also provide an option to get an emergency loan. These loans are generally interest-free up to a certain period.

5. Interest-free ATM withdrawal

This benefit is offered by the Bajaj Finserv RBL Bank SuperCard. It allows a user to withdraw cash from ATMs without any interest for up to 50 days. On the contrary, cards from other financial institutions charge high interest on such withdrawals in addition to other fees.

6. Purchasing products on EMI

Credit cards are the only way to purchase products on EMI online. Few credit card companies also provide No Cost EMI option with their cards. No Cost EMI lets a customer purchase products on EMI without accruing any interest.

7. Helps improve credit score

Many individuals use the best credit card for improving their credit score. One can increase one’s CIBIL score by paying the bills within the due date regularly. Individuals can apply for an unsecured loan if they have a credit score of 750 or above.

Hence, these were some of the benefits which make credit cards one of the most efficient options for availing instant finance. Lenders usually require customers to have minimal credit card eligibility criteria.

So, you can always apply for the best credit card with just a few clicks online.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.