Credit cards can be handy at certain times. You want to buy something but don’t have any money. Just use your credit card. Credit cards have become an important mode of payment.
Credit cards allow you to borrow money up to a certain limit to make payments. How much you spend using a credit card is known as a credit card balance. Banks set different credit card limits according to your income, history, and credibility. If you pay your credit card bills on time then you will not get any interest on the balance. The interest rates for credit cards are different. It is known as the annual percentage rate (APR). There are many perks of having a credit card. In this article, we will talk about the benefits of credit cards.
- Discounts and cashback
- Reward points
- Improve CIBIL score
- Traveling benefits
- Keep a record of your purchases
- Credit card grace period
Credit cards offer many discounts and cashback for using it. It offers exciting discounts on online shopping. You get cashback on buying tickets or food deliveries. You also get cashback on paying electricity and mobile bills. Different banks have different offers. There are special cards known as cashback credit cards. They give you cashback on specific purchases. Such as grocery bills, fuel, mobile bills, etc.
When you use your credit card often for payments, you get reward points. These reward points can be redeem once you collect enough points. You can get gift vouchers, online shopping. You can convert it into cash. The value of reward points differs from bank to bank.
The CIBIL Score ranges between 300 and 900. The score is a summary of your credit history, rating, and report. It is also called a credit score. If your CIBIL score is closer to 900, then you have a good credit score.
If you have a good credit score then banks are most likely to give you a loan. You will also get other benefits such as increasing your spending limit. Repay the amount you borrowed from a credit card. If you often use your credit card, pay your credit bill on time the score will improve.
If you love to travel, credits cards will help you reduce your expenses. From booking train tickets to the hotel you will get discounts on using a credit card. Credit cards are a popular mode of payment. And they are accepted worldwide. You can easily pay with credit cards in foreign countries. So you don’t need to worry about how much money you are spending. and you don’t need to carry more cash with you.
As you don’t need to carry more money with you. Then you won’t need to worry about losing your money. Even if you lose your credit card, call your bank to deactivate it. Credit cards also provide insurance if the card is stolen or damaged. You get accident and travel insurance coverage.
A credit card keeps track of all the purchases you make with it. You get the entire bill each month. This can help you keep the track of purchases. This will also help you while making a budget.
At the end of the billing cycle, the bank will prepare your monthly statement. A grace period is a time between the end of a billing cycle and the payment’s due date. You are not required to pay interest until the due date of your payment. Even if you spend using a credit card, your money will be still in your account until you pay your credit card bill. If you have an interest-bearing checking account, you will get money in the grace period. and when you regularly use the credit card you don’t have to worry if you have enough money or not.
- Avoid credit card fraud. If a credit card is lost or stolen, thieves can use it for illegal things.
- When using a credit card, we don’t have to keep eye on the account balance. Don’t go overboard with your spending.
- Pay credit card bills on time. At least try to minimize it. Or else you have to pay interest. And credit score will decrease.
Credit cards are convenient to use. There are several benefits of a credit card. If you use it properly, you will spend less money. You can avoid interest and gain facilities from the bank. But do not overuse it. Check out all the options before getting a credit card. Because different banks offer different benefits.