Benefits Of Using Credit Card

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By Ikram Ullah

Credit cards have become an essential part of everyone’s life nowadays. Even though financial experts recommend against using credit cards, they have proved beneficial during emergencies. Not only do they solve the problem of not carrying cash, but they also provide extra credit. Different credit cards have various features. Every credit card provider gives additional benefits with the card. These benefits are helpful for cardholders.

Why should you use a credit card?

1.         Extra Credit

The debit card allows you to use the balance in your account. However, a credit card gives you an extra amount other than your balance. It is beneficial in emergencies or when you are facing a financial crunch. You can use the credit card to meet your current financial needs and pay later at the due date. You do not need to maintain a balance in your bank account to use a credit card.


2. No Immediate Payment

You do not have to pay the amount immediately when using a credit card. Instead, the credit card is billed at the end of your billing cycle. Your spending for 30 days is billed in every cycle. Hence, it allows you some time to make the actual payments. It is beneficial when you are making large payments or in short of cash. 

3. EMI Option 

Most credit card companies offer the option of EMI on your credit card bills. If you purchase an expensive item, you can buy it with your credit card and pay an installment every month. Also, if your credit card bill is high and you cannot pay at the due date, you can get it converted into EMI. Hence, not only a credit card provides you with extra money and time, it enables you to pay at your convenience.

4. Rewards

Every credit card comes with some additional benefits. It may be in the form of reward points, frequent flier miles, discounts, cashback, etc. It is another reason why people prefer using credit cards for their payments. A credit card company will offer you different cards suitable for different needs. For example, some companies tie-up with online sellers and sell an exclusive credit card for that seller. Whenever you purchase from that seller, you get some discount or benefit. People who travel a lot can buy a frequent flier credit card. The miles earned on these cards can be used for purchasing air tickets, using airport facilities, etc.

5. Easy and Safe Transactions

A credit card is a way of a secured transaction. You do not need to carry any cash or maintain an account balance. The transaction can be done quickly by swiping on a card machine or entering a One-time Password online. A credit card is convenient to use and can be used everywhere.