5 major advantages of using a credit card

traditionally, credit cards go by the name of customized loans. simply put, this card offers cardholders the freedom to "borrow" funds under a set limit. you can use these funds for a wide array of purposes: from paying restaurant bills and shopping bills to clearing fuel and electricity invoices, and more.
the lending institution pays the merchant on the cardholder's behalf at the time of the purchase. at the end of a set time (usually month end), the institution bills the cardholder of their expenses. failure to do so attracts penalties, diminishes credit score and the holder's credit profile. 
uses of credit cards and in this article, we have outlined that concept.
think about this, if it's just about convenience, how are debit cards any different? moreover, convenience can't be the sole reason for 48.9 million Indians to hold a card now, isn't it? 
this points to our next question: what are the major advantages of using a credit card? 
there's a combination of benefits that make credit cards so appealing to us, which we'll explore today. even though we've been using a credit card (either our parents' or ours) for years, there are a few good pointers that will steal the present-day spotlight.

1. credit cards 'credit' you with rewards

while it is easy to swipe a card to make a purchase, this deferred stress takes control when the monthly statement hits your mail. it's no denying that our psychology favours multiple payments in smaller denominations than adopting the lumpsum approach.
financial institutions understand this pain point very well. to overcome this obstacle, they collaborate with brands to incentivize cardholders with various rewards (cashback, discounts, reward points, complementary goods). 
for example, each time a user makes their credit card payment through CRED, they receive CRED coins and gems to redeem offers from brands that suit their taste. we know you're wondering if rewards are eligible with big payments like rent. and the simple answer is - yes. with CRED rent pay, the cardholder qualifies for 45 days of free credit and extra reward points. isn't this 'barter trade' a win-win for all?

2. layered security protecting your hard-earned money

in an unlikely incidence of a theft or accident, it's natural for the brain's panic mode to get activated. this is certainly the case with debit cards, where instant withdraws are likely to occur. however, this is not the case with the credit card alternative. 
the card is backed with chip cards that encrypt the holder's personal information and obstructs a theft execution. additionally, the 3-number CVV at the back of the card always requires double verification - which is carried out by sending an OTP to the registered phone number and email address.
since these processes require the cardholder's intervention, the possibility of frauds swims down. further, the cardholder should call the concerned institution and get the card blocked to avoid any kinds of transactions in the first place. 
there you go. the institution lends you the money and protects you from fraud, too.

3. no interest on expensive purchases

interest rates are a dreadful prospect for many cardholders. you could compare it to the extra cream in cakes that nobody wants or likes. however, we've been told to accept that if you want the cake, you regrettably have to deal with the cream. 
but what if we were to say that you have an option to leave the cream out? how do you dodge those pesky interest rates on your purchases? the answer is applying for 0% Introductory Annual Percentage Rate (APR) card.
if you're buying a TV or washing machine, you could easily look for offers provide you with a longer 0% APR period and best align with your expectations. after making the first transaction, avoid using the card for other expenses until you ultimately clear this due. 
calculate the remaining months to maturity and divide the amount equally (like in an EMI) in the timeline.

4. universal acceptance

it's not safe to carry cash everywhere. plus, it's troublesome to get the currency exchanged for international visits at unpleasing exchange rates. and that's what a credit card is for! with a credit card, it is simpler and efficient to make visits for business or recreation purposes. 
in many countries, hotels and car rentals usually hold reserves on credit cards for confirmation. holding a card helps the user enjoy an international experience with ease.

5. gain leverage in future

we work hard today to live a better tomorrow. while education trains individuals with the knowledge and skills for building a good life, the list isn't exhaustive in itself. one can attribute a better future with the use of a credit card as well. 
credit cards help make easy transactions. but what drives this purchasing limit is the 3-digit credit score ranging between 300-900. the closer a profile reaches 900, the better their credibility in the credit space. 
but the question is, how does this score have any impact on anyone's future?
good credit history and score sends a positive signal about an overall profile that helps: 

• smoothen the process to secure home loans, car loans, education loans, or any other personal loan
• leverage the power for better negotiation for lower interest rates and higher credit limits in the future
• secure instant loans on account of accidents or other emergencies

winding up the discussion

with the advent rise of digital and technology innovations in every nook and corner of the 21st century, it's safe to say that this era belongs to the credit card industry. 
don't let the intimidation of a 'loan' get to your mind. as long as you've been keeping your expenses under your credit limit and are consistent with the repayments, you're far away from the penalty radar. 
credit cards help you develop good financing health and habit. evaluate the benefits outlined in this blog and apply for your card today.