Carrying a credit card has become commonplace in recent years, and it has become an integral part of our financial lives. Some see it as a status symbol, while others see it as a necessity for everyday transactions.
One of the best things about having the best credit cards in India is the ease with which you may purchase necessary or even luxurious items even if you don’t have the funds to do so. Regardless of all of this, there is still the question of whether or not to have a credit card. Some people adore it because of the numerous advantages, but others fear it can lead to debt.
The truth is that a credit card is best used when it is properly and carefully maintained. Here are some advantages of using a credit card to help you make your decision. It will be easier for you to decide whether or not you need a credit card after reading this.
Advantages of Using a Credit Card
Funds are readily available:
One of the most significant advantages of having a credit card is the ease with which monies may be accessed. Credit cards are essentially a bank account with a pre-approved upper limit from which you can borrow money whenever you want. You only need to swipe your card. This implies you can pay for your goods later if you use your credit card. So, even if you run out of money, you won’t have to worry about any of your purchases.
Rewards:
Many credit cards offer rewards to their clients; these awards are valuable since they can help you save money on future purchases.
However, there is one thing you must be aware of: the numerous reward programmes given by your card, as well as how to use them. So, when choosing a credit card, look for reward programmes, compare it to other credit cards on the market, and then choose one.
Some rewards can be used to purchase airline tickets, while others can be used to purchase gasoline, groceries, and clothing. So, based on your needs, choose the card that will provide you with the most value.
Facility for EMI
If you want to make a large purchase without depleting your bank account, using a credit card is the ideal alternative for you. A credit card provides an EMI option, allowing you to purchase more expensive items over time without disrupting your monthly budget or account balance. The money borrowed on credit cards can be repaid in monthly installments (EMIs). If the money is not repaid during the interest-free term, you will have to pay interest on it.
Choosing EMI over taking out a personal loan to pay for a large purchase is more convenient for buyers.
Acceptance Around the World
One of the most significant advantages of having a credit card is worldwide acceptance. When travelling abroad, you must usually convert your currency into foreign currency. When you have a credit card, though, there is no such issue. You may use your credit card to pay your bills and make all of your purchases from anywhere in the world. Credit cards are widely used around the world as a form of payment. This makes travelling throughout the world much easier because you won’t have to worry about currency exchange rates.
Improves your credit score
Your credit score, or CIBIL, is a representation of your financial health, and lenders examine it every time you ask for a loan. If you have a low CIBIL score, there’s a good possibility your loan application may be rejected. In this circumstance, a credit card can provide financial support to help you enhance your CIBIL.
So, if you’re thinking about taking out a loan soon, check your CIBIL score beforehand, and if it’s below 700, start using your credit card for everyday purchases. Above all, make sure you pay your credit card bill on time. Your CIBIL score will improve as a result of this since lenders will record all of your transactions and payments to credit unions.
