A credit card offers a lot of conveniences. It helps in avoiding payments in cash, while also being of great use in meeting unexpected expenses. With around 52 million users in 2019, credit cards are becoming hugely popular. Here are a few ways in which it makes your life easier.
1. Safe and Secure
One of the biggest benefits is that credit cards are absolutely safe. Even in case of a fraud, you do not lose the money or need to pay the transaction amount. You can simply notify the incident to your credit card company and leave it to get the matter resolved. In fact, even if you lose the card, you can get it cancelled and receive a replacement quickly from the bank.
2. Caters to Contingencies
In case of an emergency, you do not have to worry about arranging funds. You can simply use your card to pay the medical bills, replace electrical appliances or clear off debts. It saves you the hassle of counting money or writing cheques. Look for a lifetime free credit card from a reputable bank that offers the lowest credit card interest rates starting from 9% per annum.
3. Global Acceptance
Credit cards are a universal mode of payment. This makes it extremely easy to book a hotel, rent a car or splurge on shopping at an international destination. It makes it easy to travel to any part of the world without worrying about currency exchange. In fact, RBI allows only $3,000 to be carried in cash for trips out of the country. However, with a credit card in hand, you do not have to worry about this limit.
4. Credit Score
CIBIL offers this score to individuals based on their payment history. This is a 3-digit number based on how prompt you are with your debt clearance. Using the card in a responsible manner helps build you a good score. This is a parameter for banks to judge whether you are a worthy candidate for loans, enabling you to obtain the funds quickly and without any hassle.
5. ATM Benefits
You can withdraw cash from the ATM with your credit card. Users might have to pay a small fee in exchange. However, to compensate, several banks offer multiple rewards points, deals, and offers.
Further, having this little financial tool handy can give you a smooth shopping experience. You can become eligible for low-cost EMIs. Make sure you are paying your bill on time and not spending more than you can afford.