Credit Cards are a type of credit facility offered by banks. These cards have become a crucial part of people’s lives nowadays. It lets you make payments or buy this now and pay for them later. Credit Cards have a credit limit that varies across cards. This limit also depends on factors like your income profile, credit scores, and more. Credit Cards offer multiple advantages:

Lets you pay conveniently

When you have a Credit Card, you can conveniently use it like a Debit Card to pay for purchases online and offline. However, the difference between a Credit Card and a Debit Card is that the latter lets you purchase and pay using the funds you already have in your Savings Account. On the other hand, the former allows you to access credit.

The money is not deducted from your Savings Account. Instead, it is deducted from your Credit Card limit. You can use your Credit Card to pay for purchases even when you are short of funds.

Eliminates the need for cash

Credit Cards are accepted almost everywhere. Hence, such a card eliminates the need for you to always carry cash.

Builds a line of credit

Credit Cards allow you to build a line of credit. This is crucial since it lets banks view an active credit history depending on your card usage and repayments. Banks often consider Credit Card usage to gauge the creditworthiness of a potential Loan applicant. This makes this card important for future Loan applications.

Offers rewards

A Credit Card usually comes packed with offers for cardholders. Such benefits can range from reward points to cashbacks, travel benefits, discounts, and more. Such a card can also offer discounts, letting you save money on purchases.

Track your spends

Your monthly Credit Card statement includes each payment and purchase you make using a Credit Card. You can use this to track your purchases and spending, which could be useful for determining your budget.

Gives access to credit

Credit Cards have an interest-free period. This is the duration during which your outstanding credit is not subject to interest. This period could range between 45 to 60 days. During this time, you can avail yourself of free, short-term credit if you pay the total balance due by the last day of your Credit Card bill payment.

Boosts cash flow

Your Credit Card can boost your cash flow in various ways. For example, you can use your card to make purchases or pay bills when money is tight. You can pay off the balance when cash flow improves. You can also utilise the rewards from this card to offset some expenses.

Conclusion

Now that you know these, you can easily opt for a suitable Credit Card and enjoy its various perks.