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All You Need to Know About Credit Card Benefits


A credit card is a rectangular metal or plastic card that provides many benefits, from discount offers on shopping to travel perks such as flight and hotel bookings. Understanding what are the advantages of credit cards is a crucial step before you choose your card. 


When selecting a credit card or maximising the features of one you already have, understanding the benefits allows you to align them with your financial goals. Here are some key features of a credit card:


  • Enables you to make purchases for which you can pay later

  • Helps you to book tickets, plan vacations, pay bills, and manage day-to-day expenses

  • Allows cash withdrawals; this acts as an emergency fund

  • Helps you to handle all your payment-related tasks efficiently


Credit Card Benefits

Apart from the convenience of going cashless, these are the widely popular benefits that can help you save money while making safe transactions. These include: 



Credit Card Benefits
Credit Card Benefits


Making Contactless Purchases: After the pandemic, you may want to reduce physical interactions while making a transaction. Using a credit card allows you to make purchases without the need to enter your PIN or a signature by using the tap/wave technology, which ensures safety and no contact. 


Getting Covered by Zero Liability Policies: Credit cards have different rules and regulations when compared to debit cards. The purchase you make comes under zero liability policies. It ensures you’re not held responsible for any transactions made if you’ve reported that your card has been stolen or misplaced.


Going Cashless: You can avoid carrying large amounts of cash, as there’s a chance of it getting stolen or misplaced. Credit cards are accepted by most merchants these days. You won’t face any difficulty in making transactions.


However, if your credit card gets stolen or misplaced, you can cancel your credit card by calling your issuer’s emergency helpline number.


Using As an Emergency Fund: Using a credit card, you can withdraw funds up to your credit limit and repay later at your convenience. Many issuers offer an interest-free period during which you can pay your bills without any interest charges. These funds can help you pay for: 

  • Medical Expenses

  • Legal Expenses

  • Car or Home Repairs

  • Any Unforeseen Expenses


Converting to EMI: In case of an emergency or when making a large purchase, you can opt for an EMI conversion option. Your credit card bill or purchase amount is divided into instalments across a duration of your choice. This way, you can pay small amounts at a steady pace. Such a facilities can come with or without interest, so check the policies before proceeding. 


Improving Your Credit Score: Different credit bureaus determine your score based on several key factors, such as:

  • Repayment History

  • Frequency of Credit Inquiries

  • Credit Utilisation Ratio


Credit card issuers inform the bureaus about your spending behaviour and the pattern of bill payments. Hence, maintaining a low credit utilisation ratio and paying bills in full before the due date can improve your credit score.


Paying Your Recurring Bills: To use your time more efficiently, you can leverage your credit card for your regular bill payments, such as:

  • Rent Payment

  • Electricity Bills

  • Phone Bills

  • Other Expenses


Instead of using it only for one-time payment, you can set standing instructions on your credit card. You can also set reminders for your credit card bills to avoid missing deadlines.


Saving with Reward Programs: Most credit cards come with lucrative reward programs and perks such as:

  • Percentage of cashback on the purchase amount

  • Reward points for every rupee spent

  • Discounts on groceries, hotel bookings, eating out and more

  • Welcome vouchers and spending milestone rewards 


The reward programs vary from credit card to credit card. After understanding your needs and spending habits, you can apply for one that gives you the most benefits, helping you save more.  


Purchasing on International Websites: Most websites accept debit cards for online shopping.

However, in case of shopping on an international website or while purchasing a large ticket item, there are limited payment options available. In such a scenario, using a credit card can be a convenient option as most retailers allow this payment method.


With a better understanding of how to utilize this indispensable tool, you can have clarity and confidence during times of need. Knowing the credit card interest rate and studying the fine print is essential while applying for a credit card. 



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