5 Reasons Why Owning a Credit Card Makes Sense

Byshaheen shaikh

Credit cards or plastic money is one of the most useful financial tools today. They have not only made financial transactions simpler and more convenient, but also offer several benefits if used wisely.  Some important reasons to own a credit card are:

  • Easily Available: Credit cards are easily available if you have a stable income and a good credit score which refers to your ability and willingness to repay your dues on time. So if you are a financially disciplined person and have the means as well as the willingness to repay your dues, you can easily apply for a credit card and use it as per your convenience. Several banks offer free credit cards to users with good credit scores. This means there are no annual charges on such credit cards while other charges like interest rate and fine on late payments remain in force.
  • Multipurpose: Credit cards are widely used and accepted at various outlets across the globe. So, whether you need to book your air tickets, make hotel bookings, shop at the mall, buy groceries, pay your bills or shop in another country, you can use your credit cards. You do not need to carry around a lot of cash to carry out such transactions.
  • Easy Access to Credit: Credit cards offer easy and fast access to credit for a short period. These cards function on a deferred payment system wherein you can borrow a certain amount of funds to buy or spend on whatever you want. The borrowed amount attracts no interest if it is repaid before the due date as per the credit card cycle. However, if you fail to pay the due amount before or on the due date you will have to pay interest on the borrowed or used amount. So, users of a credit card get quick access to credit without having to apply for a loan every time. Credit card interest is the fees levied on users if they fail to repay the borrowed amount by the due date.
  • Build a Credit Position: Using a credit card and making its due payments on time allow you   to build a good credit score. This credit score is incredibly useful for becoming eligible for any type of loan or borrowings in the future.
  • Shop for Luxury Items: Credit cards allow you to buy expensive items, like AC, fridge, and kitchen appliances, without having cash in hand. You can begin using these gadgets even before paying for them. The amount due on your credit card can be converted into EMIs (equated monthly instalments), so that you don’t have to repay the full amount in one go.

In addition to the convenience offered by credit cards, there are various rewards and offers associated with their use. These reward points can be exchanged for cashbacks, attractive discounts, and special deals at specific outlets. So, get ready to apply for a credit card and make your financial dealings simple and convenient.