Top 10 Unavoidable Advantages & Features of Credit Cards

Due to their accessibility and flexible payment alternatives, credit cards have become a necessary component of our life. Any other financial product cannot compare to the discounts, bargains, and offers that a credit card offers, making it a gold mine for the savvy consumer. Credit cards, however, can turn into debt traps if not utilised properly or if you spend more than you can afford to pay back when the bill comes due. The main reason why the present generation chooses a credit card over cash or UPI payments is because their advantages still outweigh their drawbacks.

The main characteristics and undeniable benefits of using a credit card for your next purchase are highlighted in this article,

1. ‘Buy now, pay later’ principle of swiping a credit card

The primary benefit of a credit card is that credit is readily available. Credit cards operate on a deferred payment basis, allowing you to make purchases with your card now and pay for them later. Your bank balance is not reduced every time you swipe because the money utilised does not leave your account.

2. Purchasing gets easier with EMIs

Put a significant purchase you had planned on making on your credit card to put off paying for it if you don’t want to use all of your money. Additionally, you have the option of paying for your purchase in equalised monthly instalments, which will save you from making a lump sum payment that will deplete your bank account. Whether it’s a refrigerator or a new MacBook, you can swipe your credit card instead of applying for a personal loan, that’s a really hectic process to get through.

3. Redeem endless offers and discounts on credit cards and save money

The majority of credit cards come with tonnes of promotions and rewards for using your card. Every time you swipe your card, you can earn rewards points that can be redeemed for anything from cash back to air miles or used to settle past-due credit card balances. Additionally, lenders provide savings on credit card purchases made on things like plane tickets, vacations, and significant purchases, which can help you save money.

4. Pay off the credit under ‘interest-free period’

A credit card will often have an interest-free term during which no interest will be added to any outstanding balance. If you pay off the entire balance owing before the due date on your credit card bill, you can get free, short-term credit for periods of 45 to 60 days. You can therefore benefit from a credit advance without having to pay the fees connected with having an unpaid balance on your credit card.

5. Tracks, records and reflects all your expenses

A credit card keeps track of every transaction done using the card, and a complete list is delivered along with your monthly credit card statement. It is possible to use this to calculate and keep track of your spending and purchases, which may be helpful when creating a budget or for tax purposes. The amount of credit that is still available to you as well as the balance that is currently due on your card are both detailed in the quick alerts that lenders provide each time you swipe your card.

6. Makes travelling cashless and hassle-free

Having this card allows you to travel anyplace without carrying a lot of cash. You can pay for anything using a credit card because it is the most widely used way of payment. There are many locations that won’t permit you to make your payments through UPI, that’s exactly where a credit card comes to your rescue.

7. Gets all your insurances – covered!

One of the key advantages of credit cards that makes them appealing is the fact that you receive both complete travel insurance coverage and personal injury coverage. Getting a credit card truly covers all your insurances and is an ideal choice in a world that’s full of uncertain times.

8. Improves your CIBIL score to a great extent

Credit cards have advantages beyond only allowing you to make purchases on credit; they also assist in raising your credit rating. You can improve your CIBIL score by using credit cards wisely, taking advantage of the grace period, and promptly repaying the balance. An improved and a strong CIBIL score makes it significantly easier for you to avail financial loans in the future.

9. Ensures your own safety against theft

The number of theft incidents has significantly increased recently. Carrying cash around is no longer acceptable or recommended. A credit card is a reliable approach to safeguard your belongings in the event of loss or theft. You should give that some serious thought.

10. Redeem additional reward points

Every time you swipe a credit card, you earn some reward points, that keep getting accumulated and later you can redeem them while you’re making your purchase. For instance, IDFC FIRST Bank credit cards provide limitless, perpetual reward points that are simple to redeem.