Playstore Icon
Download Jar App

7 Benefits of Credit Card that You Must Know

April 21, 2023

Table of Contents

    Table of Contents

      Credit cards come with tons of benefits to make you love them. To know more about 7 prominent perks, check out this article!

      Walking into a store, deciding what you want and getting it with just a swipe—no questions asked about why you borrowed the money or if you’ll be able to pay it back. That’s the kind of benefits a credit card gives you.

      There is no need to go to the bank and seek a loan every time you make a big transaction. There's no need to explain how credible you are. Use your sleek card to pay for anything.

      Repay interest on revolving credit and clear your outstanding balance as per your convenience. Truly, credit cards have changed the way people shop. With easy access to credit on just a tap, transactions have become effortless. 

      Using a credit card to pay is one of the most common transactional procedures. One person can own credit cards from different banks and make use of not just the card but the additional benefits too.

      For frequent flyers, benefits like an airport lounge are a total bliss. While for others, it might be the convenient insurance cover that the credit card gives. Be it anything, if you own a credit card, there is much more bling wrapped around your finger. 

      The ownership of credit cards is becoming easier and easier. You can find almost all the banks, and even other financial institutions, releasing their own credit cards. You may even customise your card-get it made in real gold!

      Just when you start to think that innovations in credit cards can’t get any better, something new suddenly knocks on the door. The best thing  is that credit cards are accepted almost everywhere. You can shop, pay bills, and book tickets with just a swipe! 

      Out of the innumerable perks of using a credit card, here are the magnificent ones:

      1. The Buy On Credit Facility

      One of the reasons for the popularity of credit cards is the attractive credit limit that they provide. Within the given range of credit, you can buy or do what you want and conveniently pay later.

      This "buy now, pay later" saves your monthly budget. If your finances were low for a certain month, you can use your credit card to buy any high value goods on credit and then pay it later. 

      This "buy now, pay later" signifies one of the most significant perks of a credit card. With this, you can convert the total amount of  your transactions into small low-cost EMIs and repay them monthly with around no harm to your monthly budget.

      You can pay the whole sum little by little by spreading out the whole amount over a period of time. This has revolutionized the shopping experience. 

      2. Wide acceptance

      Credit cards are accepted almost everywhere. When travelling abroad, you can carry this card and take the least amount of money with you, and you won’t feel stressed about payments.

      You can pay for anything by using a credit card, just like you would use money. 

      3. Your travel best buddy

      A credit card comes with benefits in addition to just providing your credit. Especially while travelling, the benefits are unparalleled by any other payment method.

      Credit cards give you complete access to lounges at airports and railway stations.

      You even get to have a priority check-in in hotels and restaurants to save your time and effort. Some credit cards can even make your food cheaper in high-end restaurants by offering you amazing discounts.

      4. Insurance coverage- extra dose of goodness

      Credit cards come with comprehensive insurance coverage plans.

      These insurance coverages can include personal accident coverage and travel insurance coverages. Insurance coverage is definitely one of the most attractive perks of  using a credit card. 

      5. A boost to your credit score

      Your credit card and your credit score go hand in hand. The perks of a credit card are not limited to providing credit for shopping or giving you insurance coverage, your credit score also benefits from it.

      When you make timely payments of your credit card dues, this gets reported in your credit report, making your credit score rise. While a credit card is usually considered a risky option, your responsible act  of not letting the debt accumulate and clearing the outstanding balance just on time will reflect in your credit score.

      It makes your future chances of accessing credit through loans easier for you by demonstrating your creditworthiness. 

      6. Alluring discounts and cashbacks

      As mentioned previously too, a credit card gives you an advantage of discounts and cashbacks.

      On some of your favourite dining outlets, entertainment apps, travel apps and shopping apps, you can avail discounts and cashbacks anywhere. In addition to this, some of the credit cards may even aid you in availing fuel surcharge waivers at petrol pumps all over the country.

      All these things help you even with money saving as you are actually spending less on items than what they actually cost. 

      7. Rewarding points and interest-free withdrawals

      Most credit cards come with certain reward points. Some of them even provide you with unlimited reward points.

      When you achieve certain milestones, you get assigned points, which you can later use to get discounts and check backs. These are easy to redeem and may even be non-expiring. 

      In addition to reward points, certain types of credit cards can even facilitate interest-free withdrawals. This benefit is generally provided for withdrawal during emergency situations and often lasts for 45 to 50 days. This can be of great help to you in case of financial emergencies. 

      Credit cards have enough risk to discourage you from using them. However, this is not always the case. While they may seem risky up to a certain extent, they do have innumerable benefits.

      From giving you easy access to credit to earning you cashbacks on your favorite entertainment app, a credit card can do it all! With the right use of a credit card, you can even boost your credit score and secure your financial future with insurance coverage. 

      If you are looking for a platform to save and invest, Jar app is here to do the job. Start saving and investing with just Rs. 10 and save your spare change to invest in digital gold.