What are advantages of credit card?
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- Updated On:17-Oct-2022
- Replies:1
Short Answer
Credit cards have many advantages, including the fact that they are more secure than debit cards. They come with benefits like no-cost EMIs, insurance coverage, and lounge access at airports
Detailed Answer
A credit card is a type of payment method that is distributed by both banks and non-banking financial institutions. It is like a debit card, with the exception that cards have a pre-set credit limit, and when that limit is exceeded, you must pay that amount to the issuing authority before the card can be renewed.
Many people prefer to have a credit card because of the many benefits associated with it. Let's look at these advantages of credit cards:
What are advantages of credit card?
Here are some advantages or pros of using a credit card:
1. Safety and Security
A credit card has multiple layers of security to prevent fraud losses. Even if you lose your credit card, nobody else can use it without your intervention. In addition to this, if a credit card payment dispute arises, the dispute is resolved by a chargeback from the issuing authority.
2. Universal acceptance
Credit cards are accepted even if you are traveling to other countries. You don't need to worry about currency conversion or accepting payments. The user can travel internationally with ease by holding a card.
3. Credit Score
Credit card is one of the best ways to increase your credit score by using it to make timely bill payments. A good credit score demonstrates your creditworthiness, which enables you to get loans approved more quickly and have longer repayment terms.
4. Record of expenses
All of your expenses are tracked by credit cards, and a detailed expense report is sent each month with your monthly credit statement. This makes it easier to keep track of your spending and budget for future expenses.
5. No cost EMI offers
Credit cards allow you to purchase goods and services in manageable monthly installments or through an EMI with no interest over the selected tenure.
6. Lounge access at Airports
Credit cards give you free complimentary membership to hundreds of airport lounges through priority pass. They frequently provide free snacks, other food options, and drinks, including alcoholic ones, without charging you extra.
7. Cashback and Rewards
You can benefit from cashback offers and numerous rewards when you shop online or make payments to online merchants using your credit card
Pros of Using A Credit card
Credit cards have many benefits and advantages, but there are also many drawbacks if you don't use them wisely. Therefore, it is crucial to read all the terms and conditions before applying for a credit card.
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Debit card vs. credit card - Which one to use? There are a lot of differences such as the repayment options, interest, EMI facilities, purpose, charges and benefits.
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