Benefits of Availing Credit Cards of Leading Company
Know the Economical Benefits of Availing Credit Cards of Leading Company
More Indian consumers are opting for credit cards to make purchases and fulfill immediate cash requirements. Also, there are various benefits of owning a credit card, which is why it is popular among people. For instance, you have an improved shopping experience, easy access to cash, and move freely around the world as credit cards are accepted worldwide.
When you own a credit card, you have the power to purchase almost anything instantly without worrying about a shortage of cash. It allows people to buy goods and services like food, clothes, medical expenses, travel tickets, etc. The best part about a credit card is, it comes with attractive rewards and offers on products and services.
However, some people are afraid of shopping beyond the repayment capacity and fear that they may end up in a debt trap. It is understandable and wise to spend based on your needs. You must have the financial ability to pay back. However, if you can exercise financial discipline, it is the best tool for you to manage your finances.
Benefits of having a credit card
Every day the number of credit card users increases exponentially, for people use it for multiple reasons. Here are some of the benefits of owning a credit card.
- Interest-free period
Most providers offer interest-free credit cards that allow you to make purchase transactions without worrying to pay interest. However, the interest-free period is the time from the date of translation to the due date for repayment. If the users default on repayment, there will be charges for late payment.
It is a window of opportunity to manage cash by making payments on time as card issuers don’t charge interest during the interest-free period. The interest-free period range varies from issuer to issuer, but it usually ranges from 18 to 55 days from the date of transaction.
- Save money with credit card benefits
Credit cards are popular among consumers for reasons like rewards, benefits, discounts, vouchers, cash backs, etc. You can avail yourself of several perks if you are a regular commuter and in need of fuel or if you are a frequent shopper. Several brands offer discounts and cashback on using credit cards.
Further, various lifestyle benefits come with credit cards, for instance, free access to lounges, free club membership, etc. You can surpass such fees if you own a credit card.
- Build credit score
Credit card transactions are considered a major factor while calculating your credit score, and having a credit card is an effective and convenient way to build a credit score.
Although, it does not involve any interest fee as long as the outstanding bill is paid in full before or by the due date. However, you must ensure not to exhaust more than 30% of your credit limit as it adversely impacts your credit score.
- Manage finances through credit card EMIs
Equated Monthly Instalment (EMI) is a better way to manage finances if you are unable to make important transactions due to a lack of payment capacity. EMIs are for people who are not able to repay their credit card bills fully or partially.
With flexible tenure ranging from 6 to 60 months, consumers have a better chance of managing finances without putting any burden on their pockets.
- Quick pre-approval loan disbursal
Card issuers favor credit cardholders with good repayment history and credit profile. Pre-approved credit card loans are designed for select cardholders only and usually disbursed within a few hours of application. It doesn’t require any additional documentation and allows borrowers to deal with financial shortfalls.
A credit card is a financial tool that enables consumers to manage their finances without putting a burden on their finances. However, you must know how to exercise financial discipline to avoid a debt trap.