Benefits / Advantages Of Credit Card
0% Interest on purchases
There are many shopping malls, show rooms or even online shopping companies which offer EMI payments with 0% interest on your credit card. Let’s say, if you purchase an item worth 30,000 rupees. The merchant can give you the option to convert the bill into EMIs [Equated Monthly Installment]. It can be for 3 months, 6 months or 12 months at 0% interest. If it is for 6 months, the EMI is 30,000 / 6 = 5,000 rupees each month which you need to pay for 6 months. You don’t need to pay any extra charge.
Financial Peace Of Mind
Gone are the days when one used to shop around with huge wad of notes and run the risk of getting robbed or money getting stolen which was in vogue before the concept of credit card came into being. Besides if the card number is lost, forgotten or stolen, it is the card companies’ responsibility.
Earn While You Spend
This is one of main benefits of using a credit card. For each transaction /purchase you make using your credit card, you will earn some credit card reward points. Each reward point is worth some paisas. You can use these reward points to purchase any item or gift coupon from the banker’s reward points catalog. This is another way of making money.
Like A Friend, In Medical Emergency
This is one of the biggest advantage of credit card. If there is any medical emergency like, to pay hospital bills, to buy medicines, you don’t need to run for money to get the treatment done in hospitals. You can directly use your credit card and think about money later when you get the bill.
Track Spending Pattern
The monthly statements enable the card holder to know exactly where the money is going. With numerous cards, one can even access personal finance software to download the transactions from the Internet to one’s own PC.
One of the salient benefits of holding a credit card is by using it for free. One can do this as long as one pays off the balance at the end of each month since most people are not efficient/prompt in paying off the balance.
Guarantee Against Online Fraud
Credit card issuers are guaranteed against online fraud and can avoid failure to receive the ordered goods.
Though it may sound a little melancholic, it is worth noting. If the card holder gets killed or grievously injured while itinerant paid using the credit card, the card company will in general be accountable to pay the victim a hefty compensation.