Most of people wonder why they prefer credit cards over the cash or debit cards. They think how people liked to be always in debt, how they can spend money which they don’t own. Because these people don’t know the benefits of a Credit Card. Credit Cards have a lot of advantages.
Benefits of Having credit card are mentioned below:-
Rewards point & Offers
Credit card run offers to promote itself. These offers give cashback or discount of selected online website or utility payments, which is ranging from 5 to 10%. It means you will save up-to 10% on products you want.
A Penny Saved is a Penny Earned
Not only offers, credit card comes with rewards point scheme with it, means on every 100 or 150 rs spend will give you 1 reward point. Which has value of 20-30 paisa per reward. You can even redeem these points in cash if your card company allow for it.
Free credit period | Earn money on saving account
If you use debit card or cash you are indirectly loosing interest money which bank will give you to kept in bank. Credit card gives you 45 days interest free credit period.
Calculation of 45 days depends your billing cycle and card swipe date. Means if you swipe card on first day of your billing cycle only then you will get 45 days of interest free period. Late you swipe your card from your billing cycle, less days you will get interest free period.
When you spend from your credit card your hard cash resides in your bank account and bank benefited you with interest which vary from 4 to 7%, depends on banks you have.
Emergency Money | Short term cash
If you have emergency you can borrow money from credit cards as well. There are more than one way to get short temp money.
- Convert you payment into EMI, Which will help you in paying large amount in installments.
- Borrow short term loan from credit card company.
- Swipe card at you friends outlet and get from him. He might took some percent of money as charges, it will be approx 1 to 2% of money you want.
Credit Score
When you need loan of large amount, banks verify the credit history. They want to check yours capability of paying debts. Having credit card will help you in creating good credit history.
Good credit history will help you to get large amount of loan easily and at competitive rates.
Caution: You can earn thousands in a year using your credit card only if you are financially disciplined.