Credit Cards and its benefits

Credit Card is very popular this days, which allows you to get finance interest free. Yes, I said interest free. Bank will never charge single rupee on money you borrowed for very short period of time. Instead they gives you reward points and cash back to use it. But its only depend on how you are going use it. So lets check what are the benefits you will get by having a Credit Card : 

1. Interest free borrowing : 

Credit Card allows you to pay any dues or shop any thing within the set limits through credit card. Credit allow you some credit period to repay it to Credit Card issuing banks. Bank allow that Credit period interst free. You do not need to pay Interest for that specific period. Banks only charge Interest with late payment charges if you do not pay credit card dues in time. 

2. Rewards and Cashbacks : 

Bank provides you reward points and cash back for using credit card. You can use this reward points for further purchases or paying your bills. 

3. Improves CIBIL Score : 

Timely payment of credit cards due strengthen you Credit Score. Credit Score is also depends on how you are using your credit card. 

4. Easy Shopping : 

Credit card makes your shopping experience easier. You do not need to keep cash. Just shop any where and pay bill through your card. 

 5. Accepted almost everywhere : 

Credit cards are accepted almost everywhere. Now a day almost every big shopping outlets allows you to buy things though credit cards. You can pay almost any bills through credit card. 

6. Useful in Emergency : 

Credit card is very useful during emergency when you have cash shortage. You can pay hospital bills, pay bill at car service station, etc through credit card. 

7. Increase in Purchasing Power : 

Credit card also allows you to but things that are out of your budget. In that case you can convert your credit card dues to emi and pay it in as per credit period allowed for emi system. 

8. Insurance Cover : 

Some bank also provide insurance facility to card holder at free of cost.  

These are few benefits of having credit cards. If you have knowledge how credit card works, maintain discipline in using it and paying dues in time, it is very beneficial to have it.