credit card is a card that helps you to borrow a high amount of money for a pre-approved credit limit which is provided by the bank at a fixed interest rate to repay it. It authorizes you to do the transaction without money on goods and services. The credit card limit depends on your income and credit score. The benefit of your credit card is that it doesn’t link with your bank account. When you use a swipe credit card, the amount is debited from your credit card limit, not your bank account. The information on the credit card includes the cardholder’s name, expiration date, card number, CVC code, etc.
Table of Contents
LET’S GET INTO THE TOPIC. REASONS TO USE CREDIT CARD
| Reasons To Use Credit Card | |
| Cashback Policy | Hassle-free shopping experience |
| No need to carry cash | Accepted Internationally |
| Helps to improve credit score | Emergency Requirement |
| Cash Withdrawal Possible | Safe Transaction |
| Helps in recording accounts | Automated billing process |
Cashback Policy
The benefit to have a credit card simplest way is cashback. It only provides you the real value back to you instead of vouchers, earning rewards, and later redeem them for cash, or other items, that you spend during the transaction through a credit card.
Hassle-free shopping experience
If you want to buy something of a high amount and you have the credit, you can purchase it from your home comfort zone only because it has made shopping convenient and easier. It also allows you not to take any extra burden on your monthly budget.
It enables you for a special offer of buy now, pay letter, which is mainly helpful for the people who are salaried monthly because they have to pay a fixed amount of their income; another option is also their buy now and pays back on low-cost EMIs.
No need to carry cash
The benefit of having a credit card is that you can go anywhere without cash, as it is an alternative to it. If you want to do some expenses and you are not carrying cash at that time, you can use it and pay the outstanding amount at the end of the month. To enable this process, just have to swipe the card at the PoS terminal or use the credit card number for online payment.
Accepted Internationally
The credit card is the best way of doing expenses now a day days because it is accepted widely and is the most common way of payment. It enables you to book tickets, and pay at airports, restaurants, hotels, etc., internationally, but for this process, you have to pay extra charges such as foreign transaction fees which may cost you a high amount.
Helps to improve credit score
In today’s life, credit score play a factor when taking a loan; where if you have a credit card and earlier you cleared all the payment on your credit card, the credit score has already been increased, and it has a positive impact so now while taking a loan of the big amount in future it will be approved easily.
Emergency Requirement
The benefit of having a credit card is that medical emergencies don’t come ringing the bell, so if you require a high amount of money for medical bills, you can easily pay through it. You don’t have to worry about arranging funds to save your family person. But always keep in mind that you have to pay back the money on time; otherwise, high APR% and hefty interest charges will be added.
Cash Withdrawal Possible
Using a credit card, you can withdraw cash from anywhere if your need arises. However, it charges some small fee against it, so be choosey before withdrawing cash using a credit card.
Safe Transaction
The benefit of using a credit card is that it avoids fraud losses because if a debit card is fraudulent, the money from your account will be missing immediately, the online transaction you have to preprocess will be failed the check may bounce. You will come under the law of fraud, and your credit score will also decrease. Still, nothing is your fault, whereas if you use a credit card, nothing will happen; only you have to report to the credit card company your fraud and don’t pay for the transaction you didn’t make while the company resolves the matter and notify you.
Helps in recording accounts
The benefit of a credit card is that it helps in the monthly budget; if we are paying using cash, we have to keep all those small receipt copies we have taken from different shops, whereas a credit card gives you a well-organized record of your transaction list from your bank through credit card account from where you can crosscheck that you are still on the budget and doesn’t do any an unauthorize spending.
Automated billing process
The benefit of having a credit card is that using it, you can automated billing process for every month, such as phone bills, electricity bills, gas bills, etc., to your credit card so that it is paid automatically from your credit card. You have no loads in your mind of paying timely, date missed, etc. And After forgetting all the dates, you only have to remember the due that of credit card repayment.
Other advantages of Credit Card
Grace Period
Using a credit card, if you purchase, you get a grace period on your account because if you make that same purchase with the debit card, the money will be debited from your account instantly.
First time Bonus
When you first apply for a credit card, a bonus is offered to you after buying a certain amount of product within several months of using the credit card.
Insurance policy
Using a credit card, if you buy something, you will already get an insurance policy with it because the company includes it for their facility; as there is a rule, the company has to pay back the money if you lose it within 90 days.
How to apply for a credit card
A credit card can be issued in your name by applying it to your registered bank account. The information needed is:
- Name: Your legal name is required.
- Social Security or Individual Taxpayer Identification Number (ITIN): This is the most important factor in determining whether you’ll be approved for the credit card or not.
- Address: your valid address is needed
- Income: your monthly income will get the approval of your credit card limit
Conclusion
The credit card gives a consumer convenience and an easier way of payment method, and flexible monthly installments. It gives a user a hassle-free experience, cash-free use of the credit card, you can pay any time with just a swipe. The all-over estimates show that about 40 percent of credit card users get a net financial benefit from their card, 30 percent pay a financial cost, while the remaining card user equalize. Cardholders with salaried income and liquid wealth use their credit card to pay debt and to get a grace period using a credit card because here, you can pay the same amount of debt in the monthly installment process. Whereas the higher income people use debit cards for tax benefits and insurance policies at the free cost of interest
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