Top 5 Benefits of Owning a Credit Card

Credit cards can be helpful in various different ways. They are convenient, saves time and there is no need to look for an ATM or have cash in hand. There are revolving credit cards that help you spend more than the actual limit. Some of the benefits of credit cards are jotted down below. There are many credit card offers online that you can choose from for some extra discounts as well.

Convenience

One of the major factors of owning a credit card is that it is convenient. It often happens that we don't want to carry our bulky wallets or that we do not want to keep looking for an ATM and now that demonetization is at its peak, a credit card is surely essential. It also helps to keep the records of our transactions. They can help us track our expenses. Some credit cards also provide year-end summaries that help majorly at tax time. The money you use does not go out of your account and does not dent your bank balance every time you swipe.

Saves Time

If you are planning on buying that is expensive and you cannot afford it right away, a credit card is your companion as long as you use it sensibly. At a 0% purchase, a credit card allows you to pay for the item in full and spread the costs over a number of months. Pay this amount before the end of interest-free period and you would not be getting charged for the same. Although, if you miss the deadline you will have to pay a penalty in the form of some amount of interest being added each month.

Low-cost Loans

You can borrow money from the bank for free. Some banks offer credit cards that offer 0% periods which means you can effectively benefit from interest-free loan. A minimum monthly payment needs to be done and the balance must be clear before the 0% offer ends, otherwise an interest you will be charged. On an average, 18% of interest rate will be charged. Some credit card statements quote that you get up to 59 days of interest-free. This can be a great help in managing your cash flow.

Earn While You Spend

Some of the credit card issuing banks offer opportunities to earn while you are shopping. For example, you can earn incentives such as cash backs, loyalty points or air miles and you can actually earn money from your credit cards. Although these will be applicable only after you pay your bill in full, or else the interest rate will be only increased than your normal rate.

Safety

Safety is one of the prime benefits of using a credit card. Debit cards can be vulnerable to frauds, hacking, thievery, etc. also, the payment gateways like Visa, Mastercard etc offer additional password protection when using the cards online. They offer additional protection on a form of insurances for cards that may have lost, damaged or stolen. The statements of the credit cards can be vouched for claiming the new one.

There are many advantages of using a credit card that can act really beneficial for the citizens. Apply for credit card online through FreeKaaMaal for additional discounts and deals.