Credit cards play a vital role in today’s generation. They are the powerful tool for managing day to day operations. With their increasing usage and popularity, credit cards offer a gamut of benefits to the users. If an individual want to save a good amount of money, he or she can do it with the help of credit card.
Credit card is plastic card just like a debit card offered by the bank to its customers. It simply means to take the credit of some fixed amount from the bank according to limits specified by the bank. The limit of credit card depends upon the type of customers. More the earning prospects of an individual, more the amount limit he or she gets from the bank.
After availing the specified limits in a month, the user is required to pay the bills as raised by the banks. The bill should be paid within the stipulated time frame without the payment of interest. After the due date, bank charges the rate of interest which may vary from 2.5% to 3.5% per month.
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You can also read the benefits of credit cards at https://www.financialexpress.com/money/8-benefits-of-using-credit-cards-for-regular-expenses-3398811/
Credit cards provide the key advantages to the users which can be explained as follows.
Cash back Rewards
The foremost advantage of the credit card is to earn the cash backs on various shopping and day to day purchases. Every E-Commerce Platform too promotes the use of credit card by providing the various attractive cash back offers. Also, retail and wholesale outlets in India use credit cards as a medium of payment.
The cash back earned by the users can be redeemed during the next purchase. The process goes on and users earn a good amount of cash backs using credit cards.
Credit Health
Credit health of an individual can be assessed using the credit card usage. Credit Card contributes to an individual’s history in a positive manner. Timely payment and responsible use of the credit card improve the financial performance of the user and thereby credit score.
Improvement in the credit score or CIBIL score opens the door for loan approval by the banks. It also leads to the increased financial opportunities in the future.
Convenience
Credit Cards can be used in online as well as offline shopping. Its convenience of use makes it truly useful for the users. Users can use these cards while booking flights, trains or buses, ordering food online, purchasing items online as well as in offline market. Credit Cards make easy the payment process thereby reducing the need of holding the physical currency.
Interest Free Credit
The most important benefit of using credit card is to get the interest free credit for the specific period of time. Users can avail the benefit of such credit without incurring any interest charges. This interest free period ranges from 20 days to 50 days. Non Payment of credit card bill within the due date attracts the interest penalty and thereby affects the credit health of the user.
Funds in Exigency
Credit Cards offer the fund in the emergency period. In case the immediate funds are required for any purpose, credit cards play a significant role. It also acts as a financial safety for an individual. An Individual can get the funds in emergency situation without any unnecessary delays.
Ease in Budgeting
Credit card helps to manage the budget requirement of an individual. It helps users to make the more sound financial decisions. Also, it generates a habit of savings among the users. Use of Credit Cards in day to day life can simplify your financial routine. It is very significant to use credit cards so as to maintain a healthy financial life.
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