Credit cards put a smile on the faces of many, while others tell you their dark tales of how scary credit bills are. But what is the truth, and why should you have credit cards?
In today’s blog, we will be going through 5 benefits of having credit cards. So, if you are not sure if you should get one, please read this blog before making up your mind.
What are credit cards?
Credit cards often referred to as plastic money, are a type of payment card where payments are done against a line of credit instead of deducting it from the money in that person’s bank account.
The charges made for a month accrue a balance that needs to be paid off each month.
Benefits of having credit cards
Now that we briefly understand credit cards let us look into the various benefits.
Buy on credit
Credit cards give you the freedom to make purchases with a simple card swipe. That doesn’t mean that you spend beyond your repaying capacity. Credit cards come with a daily/monthly spending limit calculated carefully based on your salary/saving/income. Thus, it gives you the freedom to pay instantly and effortlessly within your assigned credit limit.
EMI Facility
Often, we need to buy things priced a little higher than our budget or more than the savings we have to purchase them. At times, these are urgently needed. The EMI facility offered by credit cards comes in really handy at such times. Most e-commerce platforms and established brands offer EMI facilities on credit cards, allowing you to buy instantly and efficiently over the next couple of months. Some brands also offer no-cost EMI, making it more sensible than paying upfront.
Most Accepted Form of Payment
Imagine you are traveling abroad. You need to pack, carry your passport, visa, and other necessary documents, make staying and travel arrangements, and even handle jet lag if it’s far. While juggling all these things, exchanging and managing your cash can be troublesome. You can avoid this by getting credit cards, as they are one of the most widely accepted modes of payment.
Interest-free cash withdrawals
Did you just run out of cash? Well, no worries because a few credit cards allow you to withdraw money up to a specific limit in case of an emergency. Even better, you can withdraw with no interest charged up to 45 to 50 days. Amazingly handy in times of financial emergency.
Insurance coverage
100% safety guarantee cannot be promised. Life is unpredictable that way and accidents can happen to anyone no matter how careful you are. They bring pain and suffering to both you and your loved ones but what’s worse is the expensive medical bills. Thus, it is always prudent to have life insurance or some accidental coverage. But what if we told you that you could get one without paying for it?
Yes, you heard us right. Several credit cards come with personal accident coverage and comprehensive travel insurance coverage.
Now that you know the five benefits of having credit cards, we hope it helps you decide rationally whether you should get one or not. We understand that some people have had a bad experience with credit cards, but as the saying goes, “Even something good can become bad if it is excessive.” Similarly, credit cards are a beneficial financial instrument if used wisely and prudently.
If you are considering applying for a credit card or wish to learn more about credit cards, you can contact us at: [email protected]