1. One-Time Bonuses
People with good credit scores can get their cards approved with added bonuses. You can avail of these bonuses by spending a certain amount in the first few months when your credit account is open. Other bonuses may include travel points, gift cards, and more.
2. Convert transactions into EMI
This is a great benefit that every credit card comes with. When you make a big purchase using your credit card, you don’t have to make full payment, you can easily convert that transaction into monthly installments, which gives you time to pay off the money over a period of time. This benefit allows you to fulfill your wishes without the burden of paying all the money at the same time.
3. Cash Back
The most significant benefit of using a credit card is cash-back. Whenever you use a credit card for making a purchase, you receive a percentage of total expenditure in the form of cashback. This allows you to save a lot of money in the long-run.
If you are a platinum member, you might get cash-back offers up to 2% to 3%. So, before applying for a credit card, look at the list of partners that a financial institution is associated with.
Another major benefit of using a credit card is the reward point system. The more you spend using your credit card, the more points you earn. These points can redeem to earn discounts, buy merchandise, groceries, and more.
4. Rewards Points
Another major benefit of using a credit card is the reward point system. The more you spend using your credit card, the more points you earn. These points can redeem to earn discounts, buy merchandise, groceries, and more.
For example, if you get Citibank credit card, you can earn reward points when you spend money on fuel, restaurants, movies, and more. Contact your bank to learn more about the reward points.
This point is for those who travel a lot. When you purchase your flight tickets using your credit card, you get flyer miles that can be used for either discounts or purchase tickets (if you have enough points).
5. Frequent-Flyer Miles
This point is for those who travel a lot. When you purchase your flight tickets using your credit card, you get flyer miles that can be used for either discounts or purchase tickets (if you have enough points).
All major airlines have at least one bank that is partnered together and offer this benefit to their customers. So, make sure you check whether your credit card has this benefit or not.
Paying with your credit card is much safer than your debit card. When you use your debit card, the money is deducted from your account instantly.
6. Safety
Paying with your credit card is much safer than your debit card. When you use your debit card, the money is deducted from your account instantly.
Similarly, if you lose your debit card, you are at major risk of losing your hard-earned money. But when you use a credit card, and you encounter any fraud, the bank will take it immediately. Plus, your money is also secured.
When you make a purchase using your debit card, your money is gone instantly. On the other hand, when you spend money using your credit card, your money remains in your account until your due date.
7. Grace Period
When you make a purchase using your debit card, your money is gone instantly. On the other hand, when you spend money using your credit card, your money remains in your account until your due date.
This time between the end of the billing cycle and the due date is called the grace period. This allows you to repay your credit card while having the luxury of keeping your money in your account as well.
Credit cards come with a number of customer protections that people are not aware not like insurance. Many banks offer insurance services to their customers who use their credit cards. This benefit is usually available to those who have a high credit limit.
This is by far the main benefit of why everyone should have at least one credit card. All credit cards are accepted universally, this means if you are traveling, you can easily make payments in a foreign country using your credit card.
8. Insurance
Credit cards come with a number of customer protections that people are not aware not like insurance. Many banks offer insurance services to their customers who use their credit cards. This benefit is usually available to those who have a high credit limit.
9. Universal Acceptance
This is by far the main benefit of why everyone should have at least one credit card. All credit cards are accepted universally, this means if you are traveling, you can easily make payments in a foreign country using your credit card.
You can rent a car, spend money on shopping, use to pay your hotel bills and more. You don’t have to worry about carrying the foreign currency with you all the time. Simply swipe your credit card and you are done.
A credit card helps you in building your credit score, which shows that you are responsible and can handle your finances. This is great for people who started working and looking to build their credit. When you spend money using your credit card and make timely and full payments, it impacts your credit score positively, which helps you in increasing your credit limit and enables you to apply for loans and more credit cards.
There are many other small benefits to why you should use a credit card, but these above-mentioned points are the main benefits that you get to enjoy when you use your credit card responsibly.
10. Building Credit
A credit card helps you in building your credit score, which shows that you are responsible and can handle your finances. This is great for people who started working and looking to build their credit. When you spend money using your credit card and make timely and full payments, it impacts your credit score positively, which helps you in increasing your credit limit and enables you to apply for loans and more credit cards.
There are many other small benefits to why you should use a credit card, but these above-mentioned points are the main benefits that you get to enjoy when you use your credit card responsibly.
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