Features and Benefits of Credit Cards

2. Quick and Instant Approval

In the case of emergencies, accessing money through loans or borrowing it from a friend can be very time-consuming and also a hassle. Hence, a credit card can help you make instant payments without actually losing available funds.

3. Online Application and Management

Everything is now available online, right from applying for a credit card online to credit card eligibility criteria. You can also use mobile and net banking alternatives to manage bill payments, purchases, and more.

4. Customised Credit Limit

The credit card limit varies across issuers and card types. A specific credit limit is set by the issuer based on your credit score and debt-to-income ratio. By displaying good repayment behaviour over time, you can get a credit card with a higher credit limit. 

5. Emergency Loans

When you need immediate funds, you can take a personal loan against your credit card. However, do check the interest rate on such loans before you proceed.

6. Cash Withdrawal

You can use your credit card as an ATM/debit card and withdraw cash. This facility can be used at most ATMs. However, it is important to note the cash advance fees and charges associated with your credit card.

7. Discounts/Offers/Rewards

While you can manage all your essential transactions with a credit card, you can also save as you swipe. Apart from cashback and welcome gifts, you can get special offers from select brands and partners. You can use your credit card reward points to purchase specific products and services. Simply redeem these points whenever you prefer.

8. Secured Transactions

Most credit cards have advanced authentication and security features to ensure safe transactions. Some also allow you to enjoy contactless payments, while others offer chip and PIN security. You can also get fraud protection coverage from select cards.

• Pay Later

One of the biggest benefits of a credit card is that you can purchase all your favourite products right away and pay for them later. The payback timeline depends on the type of credit card you own and the date of the transaction. You can pay for your purchases anywhere from 20 to 50 days after you have made the purchase, depending on the card you have. 

• Builds Credit History and Score

With every successful and on-time repayment of your bill, you build your credit history, which is a major factor that influences your credit score. A credit score is a three-digit number that represents your creditworthiness. The higher this score, higher is the likelihood of getting loans and other credit facilities at attractive rates. 

• Offers Exciting Rewards 

Almost all credit cards offer rewards when you use them to make payments. The rewards can be in the form of cashback or points that can be redeemed for discounts or gift vouchers. The type of rewards applicable can vary depending on the kind of credit card you own.