Top Ten Benefits of Credit Card Usage
New Delhi: In today’s fast-paced world, a credit card is a huge boon whether you are out for shopping, dining or watching a movie. In this article, we will be discussing the top ten benefits of credit cards usage.
Let us first know what a credit card is. A credit card is a payment card issued to users to enable the cardholder to pay a merchant for goods and services. It is based on the cardholder’s promise to the card issuer to pay them for the amounts plus the other agreed charges.
Now let’s discuss the benefits:
There’s nothing like a welcome-aboard perk. Applicants with good credit can get approved for credit cards that offer signup bonuses. These bonuses can then be used for shopping, movie, travel or even on fuel.
Discounted and free movie tickets
Depending on the card variant that you choose you can either get complimentary movie tickets or discounted prices every month.
Fuel discounts and surcharge waivers
One way to save on petrol or diesel is to get a fuel credit card that offers surcharge waivers and discounted rates or cashback deals at fuel stations.
Purchase protection insurance
Many cards offer you compensation in case goods purchased with the card are damaged due to events like a fire or get stolen by thieves. Purchase protection is normally given up to a particular limit and against events listed by your issuer.
These cards go beyond offering you credit card reward points that you can redeem for regular spends and thereby, make them more affordable.
Interest-free cash withdrawals
Usually, you cannot use a credit card to make withdrawals from an ATM, but some variants allow you to avail this facility at a premium.
Quick personal loans
You can use your card to convert the cash limit into a loan. This facility is offered by a few issuers and can impact your convenience greatly.
Travel in style
Credit cards make your travel a more pleasant experience. Certain cards allow free access to exclusive airport lounges, priority check-in and boarding, extra luggage allowance, etc.
Credit Card statements are a great way to track your expenses every month since it provides you with an itemised account of your expenditure.
Lastly, paying with the card makes it easier to avoid losses from fraud. When your debit card is used by a thief, the money is missing from your account instantly. By contrast, when your card is used fraudulently, you aren’t out any money – you just notify your credit card company of the fraud. You don’t pay for the transactions that you didn’t make while the company resolves the matter.
Do check with your bank before availing for a credit card. Also, check for any terms and conditions attached to the facility to be availed.