Benefits of Credit Card

A credit card has multiple benefits. Let us have a look at them:

• No tension of carrying cash – If one has a credit card one need not carry cash. Thus it increases one’s flexibility and also the   purchasing power of individual.
• Online purchases- Credit card helps in making online purchases and also through telephone. They also allow an individual to pay a large sum of money through EMI’s. Even though the rate of interest is not high but there may be a processing fee.
•  Cash back and Reward points-   Many credit card companies’ offers cash back and reward points on the amount of purchases one makes through one’s credit card. One can redeem the reward points for things as approved by the bank.
• Record Keeping- A credit card record can help us to track record of one’s expenses. This allows a customer to analyse one’s usage and rebalance their spending pattern.
• Credit History-   Controlled credit card usage can help in building a good credit history. A good credit card history can help an individual get a high credit score from a credit agency such as Cibil, which would come in handy while one is looking for a loan.