10 Advantages of Credit Cards for Credit Card Holder

Filed in Articles by on October 26, 2022 0 Comments
Advantages of Credit Cards

Have you ever thought of the advantages of using a credit card? Or ever wish to know the benefits that attached to getting one?  

Yes! It’s true that the benefits of credit card can vary with the way people use it to pay for purchases or service. Actually one can tell that its advantages are way numerous especially when used efficiently.

In this post, we shall talk about the advantages of using a credit card, alongside other relevant information that you might want to know concerning this topic.

What is a Credit Card?

A credit card is a payment card given to users by a bank or financial services firm to enable the users (card holders) to buy goods or services on credit with sellers that accept cards for payment.  Also, the card provides the users with borrowing capacity that can be used to balance transfers and/or cash advances and requiring them to repay the credit amount over time.

What Are Requirements For Obtaining A Credit Card?

If you desire to have a credit card, you must meet certain eligibility requirements to make sure that your credit card application is approved. Although each bank or card may have diverse criteria, the following are some basic requirements you must consider.

1. Ensure that you meet the salary requirements: It is important to know that your annual income affects your eligibility for a specific credit card. This is why before you press the ‘Apply’ button; make sure that you’ve picked the ‘right card’ for your income bracket in order for your application to be accepted. Although, it’s best to check this basis with your bank as this requirement vary depending on the bank or financial institution you select.

2. You’ll need to have a good credit score: Applicant should either be self-employed or earn a salary because you’ll have to show that you’re good with paying back your debts. This can include anything from major accommodation or car loans to smaller personal debts. So to increase your chances of getting a credit card or as well enjoying the advantages of using a credit card, you should always learn to meet your financial responsibilities on time as it will result in you having a good and higher credit score.

3. Age requirement: Age is considered on one of the main prerequisites to getting a credit card. To ensure that your credit card gets approved, you must be in the right age group. For most credit cards, the minimum age for a principal card is 21 years, while for supplementary credit cards; applicant must have a minimum age of 18 years. Although there may be some banks or financial service companies that have other age requirements, it is important to check with them before applying to be on a safer side.

Now that you’ve known some of the basic requirements for getting a credit card, it is important that you go through the eligibility criteria before applying for a credit card. Ensure to pick off each criterion in the checklist to increase your chances of being accepted.

How Long Does It Take For A Credit Card Application To Be Approved?

Depending of on each financial organization or bank, the process of getting a new credit card differs. Nevertheless, most card givers will mail you the card within an average of 7-10 working days once you’ve been approved. If you choose to mail in your application, or something happens to your card in the process of applying, this will take additional time. This is why the fastest way to get a new card is by applying online, instead of using mail.

There’s no doubt that most consumers prefer credit cards since it is usually easy to use, suitable, and generally safer than cash. However, like several financial products, the advantages of using a credit card are best enjoyed when cards are used adequately. To have an idea on how to use a credit card responsible, check below.

How to Use a Credit Card Adequately

For anyone who determines to have a credit card, it is important to consider how to plan to make the payments and how to use new purchasing power responsibly. So, keep reading to discover some tip you need to know about using credit cards responsibly. They include the following:

  • Ensure to pay off your balance every month or within a reasonable time frame.
  • Do not skip a payment. If there is no plan to make payments, however, it will likely keep on accumulating interest, decrease purchasing power and possibly limit the advantage of having a credit card.
  • Use the card to purchase for needs, not wants. A good rule of thumb for making use of credit cards adequately is not to use them for impulse purchases or unaffordable products if you cannot pay it off within an appropriate time.
  • Create a budget. Use the credit card as a budgeting tool.
  • Lastly, stay under 30% of your total credit line and also use reward cards.

10 Advantages of Using Credit Card

The advantages of using credit card are numerous, however, some prime ones include:

1. The Ability to Purchasing On Credit:

One of the advantages of using a credit card is the credit limit allowed to the cardholder. With a credit card, you can purchase anything within that limit and make payment later. Most times, even if you buy items of high value on credit, your monthly budget will not affect. One among the most important benefits of credit card is you can exchange the total amount of your purchases into low-cost EMIs to allow you to repay it easily over a period of time. This process has helped changed and promote a better shopping experience making it suitable.

2. It Makes Travel Easy:

Using a credit card to pay for travel is more convenient and safer than using other methods, although there are several other options you can use to book your travel. However, the uses of credit cards in travel make them important. Furthermore, you can often open up access to complimentary lounge access at the airports by using a credit card. The card can also provide special offer which can help you save so much.

3. Most Accepted Method of Payment:

With this card, you can travel anywhere without carrying much cash. Being the most accepted method of payment, you can use a credit card to pay anything. In addition, one of the advantages of using a credit card is that a greater number of businesses let the make purchases with credit cards, which is one of most popular payment methods for purchasing goods and services recently.

4. Interest-Free Cash Withdrawals:

In the case of emergency, there are few credit cards that enable you to withdraw money up to a certain limit, without charging interest for up to 45 to 50 days. Credit card users can make use of it in times of financial emergency.

5. Credit Cards Are Generally Safer:

Compared to carrying money, credit cards are considered more convenient and generally safer.

6. Limitless Reward Points:

One most important advantages of using a credit card is that these cards come with reward points when you use them. You can collect these points as you spend on your credit card. You can redeem you points as gift such as vouchers, merchandise, air miles and lots more once you have accumulated enough points. Take for example, IDFC FIRST Bank credit cards provide unlimited and never-expiring reward points, which can be redeem at ease.

7. Insurance coverage:

With a credit card you can secure insurance coverage such as accident coverage, including a comprehensive travel insurance coverage which is one of relevant privilege of credit cards and this makes them appealing and attractive.

8. Keep track of your expenses:

Another benefit that comes with using a credit card is that it allows you to adequately keep track of all your expenses. Through the statement you get from the bank every month from netbanking will assist you to your expenses and plan the repayment without any delay.

9. Discounts and cashbacks:

Part of the advantages of using a credit card is its extension to discounts on some of your favorite entertainment and dining outlets, travel and shopping apps, and the likes. Also with a credit card, you can enjoy fuel surcharge waivers at petrol pumps anywhere across the country.

10. Improve your credit score:

Benefits of credit cards are not only limited to shopping on credit, it allows you to improve on your credit score. If you are conversant with how a credit card operates and how to utilize the credit period, repay the amount used on time, you can upgrade your CIBIL score. This will come handy in helping you in securing loans, without any form of difficulty or hindrance in the future.

Conclusion

Credit cards have a lot of benefit it provides to users. With the card can you can enjoy advantages of purchasing on credit, keep track of your expenses, Interest-Free Cash Withdrawals, and more. Get yourself one today, and enjoy the countless advantages that come with of using a credit card.

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