Credit Card

Why Credit Cards are the Best Payment Mode

Credit Cards are one of the most convenient methods of payment today. They offer quick and efficient solutions to managing regular bill payments and other transactions. There are other benefits of having Credit Cards. We shall look at the benefits of using the Credit Cards over other methods of payment.

1. The flexibility of payments:

Compared to other payments, Credit Cards offer the maximum flexibility of payments. Paying offline as well as online using Credit Cards is easy. You can use your cards for making a range of payments including groceries, cinema tickets, travel booking, fuel, dining, and so on. There are specific cards for each purpose that offer unique reward points or cash back facilities. Make the right choice of credit cards from the Best Credit Card Offers online. You will find the Credit Cards as more flexible than the debit cards and other payment wallets.

2. Earn while you pay:

Credit Cards come with certain perks like reward points, cashback offers, discounts, and so on. You do not have such a wide range of rewards when you choose to pay using your debit cards or cash. The advantage of Credit Cards is that you get these benefits in addition to the facility of repaying the bills on the due date. Hence, a Credit Card has earning potential while a debit card does not.

3. Transparency:

It is easy to track your Credit Card payments as there is a clear trail. It is not possible to have this kind of clarity when you pay using cash. Banks issue the Credit Card bills every month detailing all the transactions done during the month. It helps the cardholder to recollect the payment details of each transaction. The particulars furnished in the bill include the amount of purchase, the name of the merchant or service provider, and the bank reference number along with the date. It becomes easy for the cardholder to raise disputes in case of inaccuracies.

4. Security of transaction

Credit Card transactions are secure in many ways. In case of fraudulent use, the cardholder can take up the matter with the concerned authorities for the reversal of the debit entries. The customer can report the theft or loss of the card to avail the insurance cover. Usually, fraudulent transactions done 48 hours before the reporting of loss of the card have insurance cover. Such facilities are not available with debit cards. Credit Cards maintain a higher level of security protocols that make them superior methods of payment as compared to debit cards. Losing your wallet containing cash and debit cards is a worrisome situation. You have insurance on your Credit Cards. Hence, you need not fear much about the loss of a card.

5. Reward points and cashback offers

You have Credit Cards for specific uses like travel card, fuel card, a dining card, and so on. Using these cards is beneficial because you can earn reward points. Redeem these points at a later date for beautiful gifts and offers. Similarly, some credit cards come with cashback offers. You find more of the proposals during festivals or at times of marketing campaigns of the merchant establishments. There are Credit Cards that offer air miles rewards points to frequent flyers. You can redeem these air miles points for free airline tickets as well.

Also Read: Citibank Credit Cards: All You Need To Know

6. Interest-free period

When you pay using a debit card, you do not have any grace period. It results in the immediate debit to your account. It is not the case with credit cards. The bank pays the merchant on your behalf and gives you an interest-free grace period to repay the amount. Depending on the billing cycle and your usage, this period can go up to even 50 days. It enables you to manage your finances efficiently. However, you have to make the payments on or before the due date of the bill to avail this benefit.

7. Improve your credit score

The Credit Card is an unsecured debt. Repaying an unsecured debt on time is a sign of good creditworthiness. It improves your credit score a great deal. Banks consider your credit score while dealing with other loan applications like home loans and personal loans. Regular usage of your Credit Cards and prompt payments of the bills can help build up your credit history.

8. EMI Options

Credit Cards give you the benefit of repaying the more significant purchases through EMIs. You have 0% EMI options when you use credit cards for particular transactions. Such facilities are not available on your debit cards. Credit cards are convenient because they give you access to exclusive services. Specific products and services do not have any option to pay using debit cards. The Credit Card comes handy under such circumstances.

We have seen 8 benefits of using Credit Cards instead of other modes of payment. It should explain why this is the best mode of payment.

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