This article is going to discover different advantages of credit cards and some of the ways that you can use them while shopping. Hopefully, this post will answer questions that you’ve and give you some insight into the world of credit cards.
The benefits are as follows:-
1. Build credit history: Charging small amounts is a way to establish a credit history. Without the credit history, it can be difficult to get loans, secure insurance, or even land a job. If you’re able to secure a loan without any credit history, your loan rate may be superior as a result.
Having good credit history can help save you thousands of rupees on all of the significant loans. For example, when you apply for a mortgage loan, a difference in an applicant with a good credit history versus a bad history could be a massive amount of rupees. Holding a credit card and making payments is the easiest ways that you can build your credit history.
2. Rewards: Many credit cards offer rewards including cash back, airline miles, rebates, discounts, gift cards, and many others. Most rewards are designed to get people hooked into using cards or spending more than they would otherwise, but used correctly, rewards points can earn you a lot of rupees. Some credit cards offer a sign-up bonus of several hundred rupees – just for opening an account and meeting minimum spending.
3. Disputed charges: When you dispute the charge on credit card, credit card companies remove charge until the dispute is resolved. With a debit card, money will not be returned unless you can prove dispute in favor. With cash, money is usually gone.
4. Convenience: I do not like to carry large cash with me. If you lose it, it is gone. If it is stolen, it is gone. Credit cards are convenient, small and carry better consumer protections. They’re also convenient to use to buy things online or to buy large dollar items. Another convenience is travel. I will be going on a cruise next week and if I use my credit cards I won’t need to exchange as much currency. Some credit cards don’t even charge a foreign transaction fee.
5. Extended warranties: Most of the credit card companies provide warranties on items you purchase with card. In some cases, manufacturer’s warranties are doubled. That is a good feature!
Many credit card companies provide detailed transaction logs that are easily downloaded. This makes budgeting easier to track and plan. Yes, it can be done by cash, but it is much more labor intensive. And time, as they say, is money.