A credit card is the best alternative method to process money-related transactions online or offline in place of carrying cash. Associated Credit Card Offers give them an additional advantage while making transactions. Debit cards are close competitors of credit cards but we will discuss credit cards in this blog. We already discussed different forms of Plastic Money like Credit and Debit cards.
Why have a Credit Card?
Keeping a credit card has its own advantage and disadvantage and it is purely upon you which methods you adopt for your day-to-day financial transactions. We will limit the scope of this blog to credit card utilization only and will discuss the needs why you should have credit cards:
- The efficient usage of Credit cards helps you in improving your credit score, and further this improved credit score is also beneficial in availing of loans and other financial instruments.
- Credit Card offers you Efficient and cashless online and offline financial transactions.
- You will be receiving Lucrative Offers on joining the credit card family.
- Having a credit card will make you eligible to purchase anything of a big amount at once and you can pay the amount later in easy EMI options (but with applicable interest rates included).
- You will have around 45 days window to pay your credit card bill that also without interest which means you can manage your finances easily in those 45 days of the window period.
Top 5 Credit Card Offers
The credit card has a long list of advantages and disadvantages and it should not be termed as a disadvantage because it is the mismanagement of the person holding the card and nothing else. I have discussed the pros and cons of credit cards in my other blog on plastic money. So here I will just list down the major advantages you can enjoy being a credit cardholder.
Some credit card offers you insurance like accidental and death insurance. You can avail of the services of these insurances free of cost because these are associated services with selected credit cards. But one thing to mention here is that not all credit card comes with insurance benefits, hence you should check them prior. You are authorised to use the services covered under the insurance policy from the time card is issued to you.
Rewards or Offers on Credit Card
Credit card companies offer lucrative rewards to their customer on joining as joining offers followed by continuous rewards in terms of cashback, and reward points throughout the usage cycle of the card. In addition, free movie tickets, supplementary discounts while making online transactions, and interest-free EMI are also offered by the companies to the customers. One more advantage is added to their list by the amazing service of No Cost EMI being provided by E-Commerce companies.
Complimentary Lounge Access
Selected credit cards offer complimentary lounge access at domestic and international airports to their customers. So if you are using airports frequently then can have access to those facilities at the airport by joining the club. Being a frequent air flyer, you can enjoy this service of lounge access and can also access other associated services at discounted rates.
Credit card as an ATM
A credit card can also be used as a debit card to draw cash from an ATM machine. But it is strongly suggested, not to attempt this except in extreme emergencies. Because the company levies heavy surcharges in the bill for the cash withdrawal which can sometimes reach up to 36% as well. So you should avoid using a credit card at cash dispensing machines as an ATM. There is Debit Card which you can use as an ATM. Debit cards don’t attract any interest for their usage as an ATM for limited transactions.
Fuel Surcharge waiver
A credit card is a bit useful in saving your pocket when you are refuelling at the station. Maximum credit cards offer saving in terms of waiving the surcharge levied by companies for refuelling. But the company can put a limit on a certain amount of spending on refuelling for achieving these discounts. Nowadays, companies are offering specialized credit cards for the persons who use their cards for refuelling more.
Generally, you must have come across people asking you to avoid the usage of a credit card. A credit card can be a good step to improve your Budgeting and personal finances, provided you use the card proficiently. Because it is the mismanagement of budget by a customer which attains trouble for him and not the credit card. There are some tips and tricks to make your credit card wonders for you. You should keep those tips in mind while using the card in future. These amazing tips on credit card usage will surely make your experience better.
A credit score is an important yardstick to access the facilities of credit cards. You must have a credit score of more than 750 to get the best offers from the companies. By visiting the official website of CIBIL, You can check information like CIBIL ratings, processes, credit card offers and other things.