Benefits of Credit Cards

It’s amazing to note how fast things change. Credit cards, which used to be a ‘nice to have’ thing (or a privilege to have) just a few years ago, have become almost a necessity in today’s world.

So much so that a lot of people carry not just one but many cards. So what is so great about a credit card that makes them so irresistible?

Emergency help

In case you run into a financial problem or an emergency situation where you immediately need some money, your credit card can easily bail you out. You needn’t wait for the month end to receive your pay.

Safer than cash

It’s safer to carry a credit card as compared to cash. Cash shows itself not only while you are paying for a ticket at the ticket counter but also from the thickness of your wallet. Thus they act as an invitation to muggers/thieves etc.

On the other hand, no one can make out anything from a credit card. Moreover, credit card transactions can easily be traced, which is not the case with cash. If your credit card gets stolen, you can get it blocked by making a phone call thus making it unusable.

Convenience

Credit cards are much more convenient as compared to cash. They are acceptable almost everywhere now. So you don’t need to carry a lot of cash with you every time you go shopping.

Just slip this small piece of plastic in your pocket and you are all loaded with the power to shop. Credit cards also provide the convenience of online shopping.

So you can order stuff over the internet using your credit card as a payment mode and have it delivered at your doorstep.

Options and opportunities

A credit card opens up new opportunities and options for you. Online shopping is one such option. Not only is online shopping convenient but also offers discounted rates.

In fact some of the things are available online-only. So you might miss out on an opportunity, if you don’t hold a credit card. Also, you can pre-pone your purchases if you have a credit card.

So you could buy something now, pay by your credit card and pay-back the credit card company over a period of time i.e. no need to wait for next 5 salaries to buy something that you need now.

Membership rewards

Almost every credit card supplier also runs a membership rewards program. Such programs are actually aimed at promoting the use of credit card.

For every purchase made on the credit card, you receive certain rewards points which are calculated based on the amount spent. Thus you keep accumulating points. Once you have sufficient points you can barter them for goods.

Generally there is a wide range of goods to choose from e. g. watches, bags, music systems etc.

Discounts

A lot of shops, airlines, car rental agencies, hotels and many other merchants offer discounts when you use a particular credit card to pay for your purchases.

A lot of them offer their own credit cards too which are also known as co-branded cards. These entitle you to even more discounts.

Sometimes credit card suppliers even offer a payback option where-in you receive a certain percentage back if you shop for more than a certain amount using that credit card.

Collaboration of credit card suppliers with various merchants and institutions serves a lot of benefits to the credit card holders.

Free insurance
Free travel insurance is another feature that is provided by a lot of credit card companies. This includes lost baggage insurance too. This is a great feature for people who are always on the move.

This combined with the car rental and hotel discounts seem to make a credit card the best travel companion.

A credit card surely are more a necessity than ‘nice to have’ when you consider so many benefits in their bag.