Your credit card is like an unsecured loan, which you must repay at the end of every billing period. It takes around 50 days for the card provider’s bank to process the billing cycle. Users often debate whether credit cards are beneficial or detrimental.
Undoubtedly, life would have been simpler without them – we all agree on that. Doesn’t it seem easier with a Credit card online? Here are some reasons why owning a credit card is a good idea.
Better credit score
A credit information company such as CIBIL or Experian will receive a report for each bill payment you make on your credit card. Credit scores are updated and maintained by these companies. Paying off the bills on time will gradually increase your Credit score if you maintain good financial discipline.
Offerings such as cashback and reward points
The companies who issue credit cards offer you cash back and reward points when you use your cards. You can usually save between 0.25 and 3.3% on all your expenses.
International transactions
There is a very small fee associated with using your RBL card worldwide. This is typically an additional 3.5% plus service tax. Some premium credit cards have interest rates as low as 2%.
Simple credit access
Credit cards offer easy access to credit, which is their main advantage. With an RBL card, you can use it right now and pay later based on deferred payment. Your bank will not debit cash from your savings account each time you swipe, so every time you swipe, you don’t deplete your bank account.
Credit is flexible
Interest-free periods occur when you have an outstanding balance on your credit card. During this time, you won’t be charged any interest if you pay off your full RBL card bill on the due date.Youget a free, short-term credit for 45-60 days. A credit advance may benefit you, and there won’t be any need to pay the charges associated with an outstanding credit card balance.
Have you tried expense tracking with a Credit card online?
The monthly credit card statement contains a detailed list of each purchase made with your card. When plotting out a budget or tax purposes, you could use this to determine and track your spending and purchases. You will also receive instant alerts from your lender every time you swipe your card, showing how much credit you have left and the current balance outstanding.
EMI options
You can defer payment by putting a large purchase on your credit card if you don’t want to sacrifice your savings. As well as this, you can also opt for equal monthly payments so that you won’t have to pay a lump sum and dent your bank account. When purchasing something like a television or a refrigerator, paying in EMIs is cheaper than taking out a personal loan.
Safer online shopping
Online transactions can be undertaken with minimal risk when you use a credit card. Your credit card company can very well raise a dispute against the transaction if you did not receive the item you ordered from the seller. It’s called a “chargeback” on a credit card. It’s not available with debit cards.
More secure than cash
Even people with access to cash use credit cards frequently because they offer an additional layer of security. Credit card companies can place holds on your account to prevent fraudulent purchases if your card is lost or stolen or your information is stolen. Some credit card companies also monitor suspicious spending activity and will notify you if something doesn’t match your usual behavior.
Airport lounge access
In fact, you can travel in a business class at no extra cost when you have access to a premium lounge. What else could you get when traveling with your Credit card online?You enjoy a luxury ambiance to rest your mind enjoy complimentary snacks, wine, a quick shower, etc.
