Top Ten Reasons to Use a Credit Card

The idea of getting a Credit Card can be daunting for most people, especially if it is your first time. There are stories of credit dues piling up and spiraling out of control that you hear of every day. However, when used wisely, a Credit Card can indeed help you save money and enjoy several benefits.

Choosing some of the top credit card providers can help you earn reward points and get great value for each transaction that you make on your card.

Here are the top 10 reasons why it is a good idea to use a credit card:

1. Credit Card Help You Build a Good Credit History

Credit cards make up for a major portion of your credit history. Several Credit Cards are available to low-income groups. You also have different SBI Credit Cards that can be availed without any income proof. This makes it a lot easier to build your credit history. If you make regular repayments, your credit score improves considerably. This makes it easier for you to avail other credit facilities or loans in the future.

2. Enjoy the Benefits of Disputed Charges

When you make big purchases using cash, it can become hard to retrieve your money in case of any issues with the product or service. You can dispute such charges on your Credit Card. Thereafter the payment to the vendor will be put on hold until the dispute is resolved. This is one of the best ways to keep yourself protected from any issues with non-returnable items, should they have any issues after purchase.

3. Great Cashback Offers

With Top Credit Cards, you can enjoy several cashback offers. These offers are not only valid on all purchases made on grocery stores, online, apparel stores, fuel stations and even on utility bill payments. This can help you get more savings on each transaction that you make as you get a portion of the amount spent as a cash back.

4. Earn Reward Points

There are various reward programs that Credit Cards offer to give you more value for the transactions that you make on your card. From welcome reward points to reward points on purchases of a certain value, you have the option of accumulating these points. You can redeem these points on several vouchers and products that are available in the rewards catalogue provided. With some cards, these reward points expire after a period of time, and with other cards, these points do not expire and can be collected for as long as you wish.

5. Credit Cards Safeguard better Against Thefts 

It is always a good idea to carry lesser cash in your wallet and have a card instead. This helps you stay protected from theft. Cash once stolen cannot be retrieved. However, with Credit Cards, you have the option of blocking the card before the damage is done. You also have credit card theft insurance that reduces the liabilities in case your card is used to make transactions.

6. You Can Track All Expenses

It is extremely easy to keep track of your expenses when you use a Credit Card. Each month, you get a detailed monthly statement that breaks down every transaction made with the card. This helps you understand where you are spending unnecessarily and where you can save more money. Using a Credit Card helps you plan your budget a lot better on the basis of the monthly statement. You also get instant SMS notifications on all transactions.

7. Enjoy Insurance Benefits

Some Credit Cards also provide insurance options for the primary cardholder. This includes accidental death insurance with prime airline companies, travel insurance and a lot more. This is a great way to keep yourself secure without the added expense of paying a premium towards additional insurance options. As mentioned above, you also have the advantage of insurance against theft or loss of Credit Card.

8. They Make Travelling Simpler

One of the best things with a Credit Card is that travelling becomes very easy. Most cards are accepted globally. This reduces the risk of carrying currency with you when you are travelling. You can also withdraw cash with most cards globally in case of an emergency.

One of the biggest benefits of using a Credit Card is Airline Miles. You can earn miles on booking Air Tickets and Hotel accommodation. Once you have accumulated these miles, they can be redeemed against Air Tickets as per the guidelines of the bank.

You have several added benefits with different SBI Card Types and other banks like complimentary hotel stay, access to Airport Lounges across the globe, concierge services for bookings and other requirements and a lot more. With a Credit Card, you can upgrade your travel experience thanks to all these additional benefits.

9. Get Relationship Benefits

Credit Cards provide several benefits and rewards to customers who have had a long relationship with the provider. For instance, most cards waive off the annual fees when you make transactions worth a certain amount each year. You also get reward points and gifts on renewing your card. With some Credit Card providers, customers are given several vouchers and reward points for maintaining a relationship with them. These rewards and gifts also increase as the purchases and the transactions made on the Credit Card increase each year.

10. You Can Get Add On Cards

Give your family the advantage of financial independence with Add-On cards. These cards save you from the hassle of withdrawing cash each time there is a requirement. An add-on card can be provided to the spouse, parents or even children who are above the age of 18. With most cards, the statement for the primary card and the add-on card are consolidated. This also helps you keep track of the amount spent on the add-on card to prevent any over usage. Add on cards are usually free and do not require the primary cardholder to pay any joining fees or annual fees.

Also Read: 6 Tips to Use Your Credit Card Wisely