Benefits of Credit Cards

Credit card is a plastic money issued by the banks, and the offered credit needs to be repaid within a stipulated time.

Besides being convenient, there are other benefits of using credit cards too.

Cash back: Many banks offer cash back opportunities if you use your card to pay monthly bills (electricity) or for grocery purchases. Besides, online shopping portals too have cash back offers on various products.

Reward points: Credit card companies offer reward points for any purchases you make with your card. For example, HDFC Bank gives 2-5 reward points for every Rs 150 spent using your card. You can then use these points to purchase gifts (available on the company’s rewards page).

Monthly Installments:If you are making a big-ticket purchase (TV, refrigerator, laptop), you can easily convert it to affordable monthly installments. Banks usually charge interest for conversion to EMIs.

Grace period:One of the main advantages of using a credit card is you can defer your payments till your bill your due. Banks offer a maximum 50-day grace period for paying back your dues.

Safety:Credit cards are safer than debit cards as in case of fraud you are not out of money immediately. Payment gateways like Visa, MasterCard also offer additional password protection while using the cards online./vc_column_text]