TOP 4 BENEFITS OF CREDIT CARDS
CREDIT CARD
A credit card is a type of payment card, and it is a key to our wallet. Using a credit card is like taking an instant loan from a bank, and you have to repay it to the bank within the billing period. The billing period varies from 40-50 days depends on the bank. If you repaid the money within the billing period, there is no issue with it because it is your interest-free period. But if we don’t paid the money within the billing period, you have to pay the interest amount for the money. It also includes late payment charges with 18% of GST. Let's see what the top 4 benefits are;
Benefits of credit card
- Universally accepted.
- Strong buyer protection.
- Beneficiary
- Credit score
Universally accepted
It is a huge advantage of having credit cards. As it is universally accepted, we can use it all around the world. It doesn’t matter where you are? Whether you are in London or a remote location in India. If you have universally accepted credit cards, you don’t need to worry about dollars or pounds. So don't hesitate to travel around the world.
Strong buyer protection
We use a credit card everywhere, starting from grocery stores to buy an online course across different websites. Then safety is more important when doing transactions. So, the reserve bank of India shifted the responsibility of proof of customer liability to the bank. If there is an issue at the transaction time, you can ask your credit company to raise a dispute against the transaction. It is known as “chargeback,” and it protects you from fraudulent transactions. But read the terms and conditions of your company if they offer “chargeback” offers.
Beneficiary
It has reward points for every transaction, like booking movie tickets, hotel rooms, and petrol banks. And it has a lot of benefits like No-cost EMI offers, cashback offers, Lounges access at Airports, priority airport check-ins, and insurance covered for travel.
Credit score
A credit card builds your credit score. The credit score is the most important number to maintain. One way to build it is to spend small amounts but repay it immediately to the bank. This repaying your amount on time helps to build your credit score. If you have a good credit score, you can get a good premium for insurances and negotiate your credit cards' interest rate. The most important thing you will get a better interest rate on your loans for education, business, and housing loan.
Credit card v/s Debit card
A debit card is totally different from a credit card. First, we have to deposit money in our bank account, and then we can use the money with debit cards. But in credit cards, firstly, we made a transaction, and then later, you repay it within limited time periods.
We can use both debit and credit cards throughout the world. It depends on the payment gateway. Comparing to debit cards, credit cards have a lot of benefits like no-cost EMI, cashback offers.
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