Do you really know that credit cards are having many positive benefits? Many of my friends don’t even want to get a credit card as they think that their purchasing habit may ruin and they may end up falling in some debt trap. But they really don’t know a smart people should have good credit cards which has many benefits.
In this article I will share some awesome benefits of having a credit card and also share my experience about how a credit card saved me to handle a medical emergency situation few years back.
How a credit card has helped me on an emergency
Yes, when my father in law was hospitalized for a major operation and all of sudden I don’t have any clue how to manage the medical expenses, I have used my credit card to pay the initial hospital bills of 80,000. This incident has changed my perceptions towards credit cards for the first time and I have realized why one should keep credit cards with them always.
I will write a detailed article on this topic and share how I my credit card has helped to manage an emergency fund without going anywhere. Although that was not the best credit cards available in India, but it was my first credit card and I found it useful at the correct time only.
Top 5 benefits of using Credit Cards
Here are few benefits which I feel one can carry by having a good credit card.
Increase of purchasing power: There is no doubt that the main purpose or benefit of a credit card is it will increase your purchasing power. You can shop for anything big, even if you don’t have enough money in your bank or debit card. Off course I don’t follow this way and never encourage anyone to do so as this might create problem for you in future. But if you want to buy something expensive and you don’t have money, a credit card can give you that option. I think better than going for a personal loan with high interest.
No Need To Carry Cash: If you have a credit card with high credit balance then you are always carrying a good amount of money with you always. Think situations when you are traveling or shopping etc, where you don’t have to worry about your cash limit or run for ATM machines to withdraw cash in case of urgency or short of cash.
Get cashback & discounts: If you are a smart buyer and aware about various features of credit cards then I am sure you are using your credit card as much as you can to get attractive reward points, coupons, shopping vouchers, free movie tickets etc. There are various types of credit cards which you can choose to avail such benefits as per your need. Personally I am using Axis bank credit card to buy free movie tickets and also a Yatra SBI credit card to get benefits while travelling through Air using Yatra.com.
Easy to manage your expenses: The best part I found is the tracking of expenses or managing your monthly budget. Every month we are doing so many things like shopping, entertainment, going restaurants, game parlor, long drive, fueling the car, going for movie etc and I always prefer to use my credit card. This is helping me to get so many reward points & automatic alerts of the best deals available around. Also I am able to track my entire months expenditure in the credit card statement which is the best way to keep a note of every expense you make. Personally I use credit card as per my repayment capacity only and never missed a due date of payment.
Help to improve credit score: Now when you follow things in a proper way and use a credit card without failing a bill payment due dates, your credit score will improve and also you will get frequent calls to increase your credit limit. Now you can hike the credit limit as per your need only, as this may create problems in future in case you lost your credit card.
So, do you agree with my points to have a credit card? Don’t just apply for a credit card as I am saying this or I have been benefited from the same, just try to link with these points and find out whether you need a credit card or you can manage things better way even without a credit card as well? Write a comment below to share your feedback or any kind experience related to credit card usage here.