Digital transactions have become the norm in the modern world. In this digital age, credit cards dominate the arena providing comfort to the users. It is no surprise that credit cards enjoy a high reputation as they provide several valuable benefits to cardholders.
Credit cards are handy, easily accessible, and advantageous. In this article, we will explore credit card benefits and how they add value to customers.
Benefits of credit cards in India are innumerable. However, before we dive into those, we must first be familiar with all the types of credit cards that are accessible to Indians.
Credit Cards for First-Time Users
These cards offer standard features with no additional benefits and typically have a low annual fee.
Credit Cards for Low-income Earners
These credit cards have low or no annual fees and provide benefits that support the users' budget.
Credit cards for Women
Exclusively designed for women, these credit cards offer shopping rewards, cashback offers, bonus reward points, and amazing travel benefits.
Travel Credit Cards
Travel credit cards provide additional travel benefits such as lounge access, rewards, co-branded privileges, etc.
Shopping Credit Cards
Shopaholics can benefit exclusively from this card. They can enjoy rewards, cashback, and additional benefits on online and offline shopping.
Airline Credit Cards
These credit cards, which were primarily introduced in collaboration with airlines, allow you to save more on air travel.
Rewards Credit Cards
Rewards credit cards provide several generous rewards across all categories, as well as accelerated rewards on specific purchases.
Cashback Credit Cards
Instead of rewards, cashback credit cards provide return cash back into your bank.
Contactless Credit Cards
Equipped with unique technology, these cards allow cardholders to make payments with a simple tap. They come with discounts, cash rewards, concierge services, insurance, etc.
Entertainment Credit Cards
If you are looking for some entertainment benefits or discounts on movie tickets, BOGO deals, or more, then these credit cards are for you.
Secured Credit Cards
These credit cards, which are offered in exchange for fixed deposits, are ideal for those who have difficulty getting a regular card.
What are the benefits of credit card, you ask? From offering reward points and cashback to providing discounts on international purchases and protection against fraud, credit cards come with a myriad of value-added uses. Here are some benefits of credit cards in India:
Credit cards offer convenience. You don’t have to carry cash around with you or compromise on your purchases due to a lack of money at the moment.
Since the country is highly digitalized, you can carry your credit card anywhere with you and make payments, big or small, with a simple swipe.
It also prevents you from having to carry the right amount of change or bills. Simply present your credit card to the cashier and relax.
Protection Against Online Fraud
Credit cards provide strong buyer protection. Every day, millions of new websites pop up, offering attractive deals and better products. However, most of them are illicit and designed to extort money from unsuspecting buyers. With a credit card, however, you can purchase without any fear, as the purchase is protected against fraud.
Once you make the purchase, you can raise a dispute against the transaction to the credit card company, in case you did not receive the order from the seller. This service is called ‘Chargeback’ and helps you against fraudulent sellers. It is especially useful for high-value purchases.
Amp Up Your Credit Score and History
Did you know that you can use your credit card to build your credit score?
While it is not an uncommon benefit, most users are not aware of it. Your credit score determines your creditworthiness as a borrower. So, having and using credit cards on a regular basis can help you improve your credit score easily.
You simply have to be punctual on your credit repayments and stay within your credit limits to increase your credit score. The higher the credit score, the better the loan opportunities for you.
Using a credit card responsibly is essential for building your credit history from scratch or repairing your poor credit score.
Utility Bills and Recurring Payments
Credit cards can be used for one-time purchases, but they're best for recurring payments. You can use your credit card to set up recurring payments for monthly bills such as electricity, phone, and gas. This way, you avoid the risk of neglecting to pay your bills on time, thereby preventing late fees.
Setting up monthly recurring payments through credit cards can help you parallelly improve your credit score as well.
Specials Rewards & Cashback Offers
Every credit card has a rewards program. This means that they offer rewards for every transaction you make with the card, such as points that can be redeemed for vouchers, trips, and other gifts.
In addition to rewards, users are also provided with additional credit card benefits such as cashback on all purchases, access to online shopping deals, and discounts when they use the card at certain retailers.
Premium Credit Card Benefits And Other Perks
If you are a premium credit card holder, you can expect to receive many perks such as priority check-in, and no more long queues, and you can also avail airport lounges for free. These benefits depend on the card.
There are some super-premium credit cards that allow users to play golf unlimited times a year, free of cost. While others offer a concierge service to the user. Several websites, usually Visa, offer compelling deals from time to time to these credit-card holders.
It’s undeniable that online shopping is highly convenient and cost-effective. From buying apparel from local stores to booking international flights, online purchases have become quite common. While shopping websites offer a range of payment services, using a credit card would be a wise choice. Making a purchase online using credit cards can help you earn rewards, cashback, and several other valuable benefits.
Moreover, if you are making a purchase on an international website, it is unlikely that you will be provided with a debit card or COD option. If you are making such a purchase, a credit card will make it easier for you to accomplish the task.
Other Miscellaneous Benefits
Credit cards offer a ton of benefits. Besides the above-mentioned perks, users can also avail of accidental death cover, fire insurance, and more, depending on the type of credit card they are using.
Credit Cards are a valuable financial tool. A vast majority of people avoid using credit cards because they fear they will become debt-ridden. Despite common misconceptions, credit cards are not to be feared. Apart from being safe, secure, and convenient, credit cards offer several benefits to users when utilized responsibly.
Now that you know the compelling advantages of a credit card and all the ways it can work for your benefit, it's time for you to get one and start enjoying the perks and rewards it offers.
Your credit limit is determined by your gross monthly income. Credit limits are typically set at twice your net monthly income.
There is no maximum number of credit cards that you can have. As long as you qualify and fulfill the required criteria, you can carry as many credit cards as you want. If you do not maintain the appropriate credit utilization rate, your credit score may suffer.
While a credit card is a savior, there are times when it should not be used, such as
Large purchases that exceed your credit limit
Paying taxes as this will incur a fee
A series of impulse purchases
Yes. It is known as cash advance. You can withdraw cash from your credit card and deposit the money in your bank account to use it. Cash advances on credit cards are subject to a fee called the Credit Card Cash Advance Fee.
If you happen to lose or misplace your card, you can easily contact your bank via a 24-hour helpline number. Inform your bank of the missing card, and they will cancel it immediately, restricting any unauthorized use.
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