Getting instant cash is one of the most popular reasons why people opt to have a credit card. But along with that there are many other benefits attached with the same.
Having a credit card makes it easier for you to go cashless. You do not need to carry around a lot of cash as all you need to do is swipe your credit card whenever you need to make a payment. It is not only a much safer option but it makes the payments rather secure as well.
- It is much more convenient
In most cases, it is much more convenient to swipe a credit card than to pay with cash or any other medium. At times it is normal to have a shortage of cash or bank balance. In such cases all you need to do is swipe the credit card and your payment is made. This makes the whole process more convenient.
- You have a system of record keeping
When you are making a payment through your credit card, it automatically gets recorded by your bank. At the end of the month, when you receive your bill, you will get the details of all the payments you have made. This helps you to keep a record of all your payments and the expenses that you are making each month.
- Loans against credit cards
If you have a credit card from a good banking institution, you should be able to get a loan against it. This is one of the best benefits of owning a credit card. There are many different types of corporate credit cards that help you to get loans for your company. As an entrepreneur if you are having trouble financing your company, you can use your company credit card to get a loan for such investments.
- Perks attached to credit cards
Having a credit card helps you to get many perks. The most common ones are the different discounts that you can avail if you are making payments with the credit card. These days most big brands and online shopping portals have tie ups with the different banks and these credit card holders become eligible for these customized discounts and offers.
- EMI facility option against credit cards
If you require purchasing something on an EMI, you can easily avail this facility with the help of a credit card. Most of the EMI companies will accept credit card as the platform for such payments making it easier for you to make the payments in installments.
Can a credit card get you into trouble?
Though there are many benefits attached to a credit card, if you are not careful, you might be faced with some disadvantages as well. Here are some of the common troubles you might face with a credit card.
Since you do not have to make any immediate payments, it can sometimes get easy for you to over use it. If at the end of the month you have the required finances to pay back the bill, you do not have any trouble. But if you are short of funds during the bill payment date, you might have to pay some interest.
Sometimes there are some unexpected fees attached to the credit card which makes you pay more than the actual cost of the goods and services that you purchase.
If you are unable to pay back your bills on time, you keep on accumulating debt. This has an adverse effect on your credit rating.
It is advised that you use your credit card only when necessary and within your means. Make sure to set a comfortable limit to your credit card and pay off your credit card bill before it becomes subject to any interest.