A credit card is a secure payment method that involves a card that is issued by a bank to the cardholder based on the person’s credit history, account statement, and net asset worth.
It is widely used for its convenience of payment and for the reward points it offers which can later be redeemed for multiple benefits across various platforms. It can simply be put like a receipt for a loan, the amount of which is decided by the bank based on your bank statement or net asset worth. Therefore, you must check the credit limit before you apply for credit card.
People worldwide use it in the time of need for some extra credit when they are low on funds. Also, the EMI method of repayment has made it the go-to tool when you want to purchase a product that is priced out of your budget but the monthly installment is nominal, which makes the process of owning expensive gadgets, appliances, etc very easy on the average man’s wallet.
Features and Benefits of Credit Card
You must go through the benefits of having a credit card and see how it can help you to make various transactions. Here are some features of credit cards you can explore below.
EMI Payment Option
This allows the user to pay back the amount for which the credit card has been used in fixed monthly installments and this makes things easier on the average man’s wallet and helps to maintain the monthly budget more effectively.
Reward Points
Rewards points are basically cashback points you receive when you make a payment for a product using your card. Over the time these points get accumulated into your card account which can then be used for purchasing stuff from a designated catalog, these points can also be used to get discounts on flights, movie tickets, etc.
Airport Lounge Access
Some card companies offer their customers exclusive airport lounge access wherein you can wait for delayed flights in a comfortable lounge with all the amenities and free meals all for free and available only for card users.
Dining Benefits
Credit card users enjoy loads of discounts on dining bills across various high-end restaurants and eateries, this benefit is widely used by food bloggers, influencers, businessmen, etc. These discounts are offered in restaurants across the globe.
Insurance Benefits
Upon a credit card fraudulent transaction happening with you, if you inform the bank of such a transaction in under 24 hours, the next such fraud will not cost you anything, this is called Credit Card Insurance, a benefit that makes using credit cards much more safe and secure.
Credit Limit
The credit card gives you a good credit limit that is the lender of the last resort during difficult times. You can use a credit card for shopping, paying utility bills, and making many other transactions. Therefore, you must get a credit card and enjoy a high credit limit on it and high risk credit card processors.
Fuel Surcharge Waiver
The majority of the cards enable you to get a fuel-surcharge-waiver, which is a flat 1% discount on your fuel bills when you pay at a filling station using your card. This is a feature of cards unknown to the masses. You must see India’s best fuel credit cards that give you additional benefits, including the fuel surcharge waiver.
Conclusion
You have seen how a credit card can bring you savings and allows you to enjoy various benefits. On the other hand, if you want to build a credit score then a credit card is the best instrument for doing so. You will just have to use a credit card for making various transactions and make the credit card bill repayment on time. Following this activity will continuously improve and build your credit score so that you can apply for other loans in the future.
