People have varied opinions on Credit Cards. You might see them as financial assets offering multiple rewards, cashback, and discounts. On the other hand, some might see it as a tool that could lead to debt, unnecessary spending and interest. Everyone has multiple and differing opinions about this financial product. Let us look at some of the advantages of using Credit Cards:
Restricted payment options
Credit Cards give you more payment options. For instance, Insurance payments can be converted to EMIs through a Credit Card. If you do not own one, you might miss out on bonuses and other promotional offers that might help you financially.
Lower credit score
Credit Cards are the best option to boost your credit score. It is important, especially when you try to apply for a Loan or when you try to lower your interest rates. By using Credit Cards and paying their bills on time, you can build your financial credibility. Not using a Credit Card will make it more difficult for you to access these services in future.
Extra rewards & benefits
A Credit Card offers many benefits, including cashback, travel discounts, reward programs, and more. Avoiding a Credit Card will make you lose these extra benefits in your everyday life. These could help you in the long run and provide more stability.
Emergency fund
Credit Cards are an excellent asset during emergencies. You can use them as a backup without relying on others. Not owning one will force you to exhaust your savings or depend on others for Loans.
Discount on travel bookings
It can be expensive to travel. People look for different ways to cut down their expenses while travelling. Travel tickets can be costly, and Credit Cards can be the easiest way to get discounts. Many hotels provide discounts, too, if you pay the bill using a Credit Card.
Online Shopping
Using Credit Cards for online shopping can lead to great deals and excellent discounts. Credit Cards also offer buyer protection, making you less likely to fall prey to fraud while online shopping.
Protection against fraud
Nowadays, you are vulnerable to online fraud, unauthorised charges, or payment errors. Credit Cards have excellent provisions to revoke fraudulent transactions. Not having a Credit Card will put you at risk and make you more prone to financial losses. Also, if your card gets stolen, you can quickly block it from the Internet and Mobile Banking app. It is safer. Than cash
Points to note
You should learn about the pros of using Credit Cards before applying for them. These are excellent financial tools if used properly. You can also use Credit Card interest calculator to manage finances better.
Conclusion
You need not submit too many documents for verification while applying for Credit Cards. A reputed bank where you already have an account makes the process easier. A Credit Card enables you to buy the desired items now and pay for them later.
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