What are the Benefits of Using a Credit Card?

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According to a recent report published by The Economic Times, the number of credit cards active as of May 2019 was 48.9 million, which is a 27% increase from the previous year data when the number of active credit cards stood at 38.6 million.

Going by the amount of transactions made using a credit card, consumers spent an approximate Rs.6 lakh crore using credit cards in the financial year 2018-19 which is a 30% hike from its previous year. This rise in the number of credit card users and the amount of transactions are a result of multiple credit card benefits offered by financial companies.

What are the benefits of credit cards?

Consumers opting for credit cards can avail the following financial benefits –


1. Welcome bonus

Consumers who avail credit cards are rewarded with features like welcome bonus. Individuals can earn a welcome bonus of up to 20,000 reward points with cards like Bajaj Finserv RBL Bank SuperCard. The bonus points are redeemable for specific purchases or can be utilized in the purchase of vouchers or cashback as offered by the financial company.

2. Rewards and cashback

With every eligible purchase and payments made through credit cards, individuals can earn reward points and cashbacks. Individuals earning such reward points with the credit card purchases have multiple things to do with their credit card reward points like earning cashbacks, qualify for gift cards, vouchers or in specific purchases.

3. Interest-free cash withdrawal

Some credit card lenders let users withdraw emergency cash from ATMs using their credit cards. The amount withdrawn is usually free of interest if the borrower makes the payment within 50 days. This credit card benefit provides access to interest-free funds for emergency purposes.

4. Loan using credit cards

Individuals can also avail personal loans for various crises situations via the credit card. In such cases, the credit limit or a portion of the credit limit is converted into the loan amount. Easy repayment options, 90-day interest-free loan option are a few reasons why one should opt for a quick personal loan on credit card.

5. Easy application procedure

Applying for a credit card can get easier if the user chooses reputed financial companies that offer easy and convenient application procedure.
Non-banking financial companies like Bajaj Finserv provide consumers with pre-approved offers on credit cards which facilitate an easy and time-saving application procedure. These offers are applicable on several financial products such as personal loans, business loans, home loans, etc. Check out pre-approved offers in seconds as the candidates submit their name and contact number.

6. Protection against online frauds

One of the significant credit card benefits that applicants can avail is that they provide substantial protection against online frauds. Credit card frauds such as phishing, cyber-crimes, etc. can be avoided as users don’t have to pay bills for fraudulent transactions. Therefore, knowing about the types of credit card fraud and how to avoid them will protect users from encountering such problems.

7. Convert big purchases into easy EMIs

Making big purchases require substantial funds and making the payments in full can put a financial strain on an individual. Therefore, being able to convert the big purchases into effortless EMIs is a convenient option for consumers. Therefore, users can convert their credit card purchases into easy EMIs and pay conveniently.

Subsequently, consumers can avail such credit card benefits conveniently and make better financial decisions. Even with numerous benefits coupled with credit cards, cautionary usage of the cards is a must. Users should understand their spending patterns and make wise decisions for accurate payment of credit card bills.

Timely payment of credit card bills is necessary as the user doesn’t have to pay any imposed interest if the outstanding credit is paid before the due date. Therefore, candidates can maximize the benefits offered with a credit card by making sure they make proper utilization of credit limits and make timely payment of their credit card bills.

Summary

Must-know benefits of a credit card

Credit cards now are a more popular option of payments if the yearly statistics are to be believed. This rising popularity of credit card usage and preference as a convenient payment option is due to the multiple benefits offered by financial institutions along with it. Applicants can avail these credit card benefits and make better financial decisions in their day to day life. Credit cards are an universally accepted mode of payment that provides several offers and rewards to consumers on specific spends and help them save funds eventually. Some of the major financial benefits one can acquire using a credit card are listed below –

  • Applicants can earn reward points for each of their eligible purchases that can be redeemed by earning cashbacks or vouchers, discounts, etc.
  • Individuals availing a new credit card get to enjoy a welcome bonus which can be redeemed while making payments at a later point in time.
  • Credit cards come with cash withdrawal facility via ATMs. Few reputed financial institutions even allow users to withdraw funds without having to pay any interest if repaid within 50 days.
  • Emergency loans can be availed by consumers that can be repaid interest-free in easy instalments. Similarly, big purchases can be converted into effortless EMIs for the benefit of customers.

Apart from such flexibility in bill payment and all-time availability of funds, consumers are also protected against the online threats and cybercrimes that one may come across. Users don’t have to pay the amount for fraudulent transactions made through their card as they can report a complaint and secure themselves from paying anything extra for such transactions. Refer to leading financers for feature-rich credit cards such as the Bajaj Finserv RBL Bank SuperCard. Maintain a CIBIL score around or above 750 to successfully apply and avail the most beneficial features.

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