Credit Cards have become an essential financial tool for people across the globe. India, too, has embraced this trend! With the economy growing at a rapid pace, it has become imperative for individuals to own a Credit Card. Here’s why you need a Credit Card.
We’ve listed out several top reasons why the right Credit Card can benefit you and your finances in more ways than one. We’ve done the work and collated some of the key points to help you make an informed decision! Here goes…
Convenience
One of the biggest advantages of having a Credit Card is convenience. It eliminates the need to carry cash, and you can make payments anytime, anywhere. Whether you’re shopping online or at a physical store, a Credit Card is all you need to make the transaction. Moreover, with contactless payments gaining popularity, Credit Cards have become even more convenient to use.
Building Credit Score
A Credit Score is an important parameter that lenders use to evaluate your creditworthiness. It reflects your past credit behaviour and helps lenders decide whether to approve your loan or Credit Card application. Having a good Credit Score is crucial if you want to apply for a Personal Loan or get a Credit Card in the future. With a Credit Card, you can start building your Credit Score by using it responsibly. By making timely payments and keeping your credit utilisation low, you can improve your Credit Score over time.
Additional reading: What’s A Good Credit Score For Easy Loan Approval?
Rewards, Discounts or a Lifetime-free Credit Card!
Credit Cards offer a range of rewards and discounts to cardholders. These could include cashback, reward points, discounts on shopping, dining, and entertainment, and more. Depending on the Credit Card you choose, you can earn rewards and discounts on every transaction you make. For instance, if you choose a Credit Card that offers cashback on fuel purchases, you can save money on your fuel expenses.
Emergency Fund
Another key benefit of having a Credit Card is that it can serve as an emergency fund. If you experience an unexpected expense, such as a medical emergency or a car repair, you can use your Credit Card to cover the cost and then pay it off over time.
Additional reading: Credit Cards for the Uninitiated: A Beginner’s Guide
EMI Facility
A Credit Card also comes with an EMI facility, which allows you to convert high-value transactions into easy monthly installments. On some cards, you can even make big purchases @ no-cost EMIs! This is particularly useful when you cannot afford to pay in one go. With the EMI facility, you can convert the whole purchase amount into smaller installments that are easier to manage.
Safety and Security
Carrying cash can be risky, and you can easily lose it or misplace it. On the other hand, Credit Cards come with several safety features that protect your money from fraud and theft. Most Credit Cards come with a PIN, which you need to enter to authorise any transaction. Some Credit Cards also come with additional security features such as OTPs, biometric authentication, and more. In case of any unauthorised transactions, you can report it to the bank, and they will take the necessary steps to secure your account.
International Transactions
If you travel frequently or make international purchases, having a Credit Card is essential. Most of them are accepted globally, and you can make purchases or withdraw cash in any currency. Moreover, Credit Cards also offer competitive exchange rates, making them a cost-effective option for international transactions.
In conclusion, we’d like to emphasise that there is a perfect Credit Card for everyone out there. Whether you’re looking for convenience, flexibility, or financial security, a Credit Card can provide you with a range of benefits to make your life easier and more enjoyable. Of course, it’s important to use it responsibly and avoid falling into debt. But, as long as you manage your finances carefully, a Credit Card can be a valuable tool in your financial arsenal.