Benefits of Credit Cards - Card Delta
A credit card offers several advantages such as: Freedom from carrying extra cash around. An interest-free credit period to make the payment for your purchases.
Most people apply for a credit card when they begin their career or when they take on financial responsibility for the family. They find these cards resourceful especially when they need cash for purchasing some essential for the family or for some medical emergency. It provides you the ease of convenience wherein a personal loan will take at least minimum of 2 to 3 days to get instant cash. Following are some of the most common benefits of using a credit card.
Ease of Convenience
With all lines of businesses becoming digitized, carrying cash is no more a necessary part in our everyday life. Moreover, carrying a credit card is much safer than carrying cash. As the card is password protected, there is less chance of being misused. You can just swipe your card to make all the purchases. A credit card allows you to make all kinds of transactions with ease and pay for them later without any interest subject to the terms and conditions.
Best Companion During Financial Emergencies
Emergencies are unavoidable and running short of cash at such instances is so common and one needs a helping hand to bail out. Credit card can be your savior in such circumstances. You can use your card to make payments and pay for them later. As all business places have point of sale machines, using a credit card won’t be any problem.
Welcome Gift
Most credit card companies, in a bid to attract more customers, provide a lot of welcome benefits to the credit card holders. It includes e-gift vouchers, huge reward points, gift vouchers, etc.
Money Saver; Reward Points, Cashback and Discounts
Using credit cards for all your transactions can indeed save some money for you. With the intention to bring a lot of customers under their fold, credit card companies have introduced reward points, cashback, discounts and offers on various purchases.
Reward points are provided for each transaction which can be accumulated and redeemed against various gift items. Some credit card issuers allow you to convert your credit card reward points to cash which can be used to cut down your monthly bill.
Cashback is the buzzword in the e-commerce industry. Credit card companies partnering with certain e-commerce companies provide cashback on various purchases. This can be obtained only if you have a credit card. This can save a lot of money as you pay less than the normal price.
Discounts on dining, shopping, hotels, movies, flights, etc., can help you save a significant amount. You need to identify the channels through which you can get these discounts.
Complimentary Airport Lounge Access
This is one of the perks of using a credit card. You can get complimentary access to airport lounges wherein you can relax and enjoy unlimited free food and beverages. However, this is not applicable to all the cards. You need to check if your credit card provider offers this facility for your card. There may be a certain limit on complimentary access to the lounges.
You can use all the facilities available at the lounge for free using your credit card. Certain credit card companies allow add-on cardholders to enjoy the same benefits.
To get the complimentary access, you need to get the Priority Pass Membership from the credit card issuer. You need to apply online for the Priority Pass Membership by giving your personal and card details.
Free Travel Insurance
Credit cards that are exclusively designed for travel purposes and other premium cards provide free travel insurance which can provide a cover against air accidents, baggage theft or loss at foreign countries, overseas emergency hospitalization, etc. These benefits are not available on all cards. Hence check with your credit card company if they provide such benefits on your card.
Concierge Services
When you travel abroad or stay at a hotel, you can customize your travel and entertainment activities. Making airline reservations, booking hotels, etc., can easily be done by using the concierge services provided by the credit card companies. However, this service or assistance may be charged along with a monthly bill as per the rates.
Credit Score Builder
Credit score is an important criterion when you apply for a loan. This helps you get better terms on a loan. Using a credit card helps build a good credit score on consistent repayment. A loan may have a predetermined tenure and you will have credit history only for that particular period. But when you use a credit card, you have a long credit history and your credit score soars high with a positive track record of repayment.
Golf Program
Most premium credit cards offer complimentary golf rounds at golf courses around the world. You can get a complimentary training session, entry fee, green fees, etc. Rest of the fees have to be borne by the cardholder.
No Cost EMI
People who wish to purchase accessories, gadgets, appliances and various other household items can buy them using a credit card and pay for them in EMIs without any interest rate. Many find this a lucrative option to purchase their most favorite and essential items online. No Cost EMI is provided to only credit cards that have tie-up with the e-commerce website.
Add-on Cards
The cardholder can get an add-on card for his/her immediate family member. Add-on card members can make use of the credit limit of the primary cardholder and make purchases.
Lifetime Free Credit Cards
Most of the credit card companies issue lifetime free credit cards which can be availed at free of cost, and there is no annual fee charged on the card. It allows the user to use the card without having to pay anything for it.
Fuel Surcharge Waiver
When you fill fuel for your vehicle using a credit card, you may enjoy discounts on fuel surcharge. There are also exclusive credit cards for fuel purchases which can save you a lot of money if you are in the transport business or use vehicles often. You can usually get up to 3% of fuel surcharge waiver on fuel credit cards.
Keep Track of Your Expenses
Once a month, your credit card bill gets generated which lists out all the transactions done by you. You can go through to keep a track on your monthly spends and plan your budget accordingly.
Apart from the above benefits, the cardholder can get the annual fee waived off on reaching the spend of a certain amount set by the credit card company. Some offer additional reward points on spending a certain amount per annum.
