This post is written as per the suggestion from the students that we must also develop a section on financial management. We hope that you will like it.
This post will have all the positives of getting a credit card. Soon we will write another post with the negatives associated with it.
Why should I get a credit card?
I’m sure all of us have been hit by this question more than once.
Very few among us research the credit cards before they get one. It is essential that we get the right type of credit card. Only a few among us research about the credit cards before getting one. I’m sure that all of us have had their doubts on what is a credit card and how can it help us. Here we bring you a list of benefits that will tell you why you should get one.
10. Having some sort of protection is always good. Isn’t it?
When you pay via your cards, it is not you who has paid the money. It is your bank that has paid the amount. You owe your bank the amount that it paid on your behalf. This being the case, the bank is always cautious and you are insured against the fraudulent transactions on your card.
9. Emergency availability
Let us assume you need to buy something important, but your salary has not arrived yet. In this case, the credit card shall offer you a backup, giving you a choice that you can buy things now but pay for them later.
8. Free money
This may sound stupid but it is actually true. Whenever you buy something using your credit card, you virtually enjoy it for free for a couple of days (till the time you pay your credit card bill). That gives you more options to mobilise your money better.
7. International transactions
These days we make many digital transactions, most of them on a global platform. While doing these transactions, safety is always a challenge. With credit cards, you can be safer as there is a timeline of 48 hours to report the transaction where the risk entirely lies with the bank. Even while travelling abroad, you may want to carry some money; but honestly tell me one thing. Would you like to travel with cash that anyone may snatch (trips abroad can be unpredictable), or would you like to travel with safe insured plastic money. What do you think is better?
6. Time to build your credit report
Credit cards are the easiest ways to build your credit. You may want to buy a house, a car, or anything else through a loan. Banks decide whether to give you a loan or not based on your credit report. Using your credit card wisely and building your credit report better will always come handy. Credit cards will even help you rehabilitate your credit. (TIP: Do not overuse your credit card as even that will lead to a dip in your credit score.)
5. Lots of freebies
Most of the credit cards now come with comprehensive offers. Some will offer you free movie tickets, others free flight tickets. There are many credit cards that offer you a free insurance. I have accidental insurance of 50 lakhs free of cost simply because of my credit cards. You can always count on your credit card provider for getting many offers.
4. Dissatisfied with a service? File a Chargeback.
We work hard to earn every single penny. However, sometimes we are cheated by some people. Some of the brands have a tendency to miss-sell us their products. Since we have already paid for their service, we can’t do much about it. However, with credit cards, that is not the case. If we think that we are cheated and the seller refuses to resolve our issue, we can approach our credit card provider seeking a refund of the amount that we have paid.
3. Lost your wallet? Nothing to worry
If you ever lose your wallet full of cash, the chances of you getting that money back are negligible. With credit card, that changes. You can simply call your credit card company and ask them to block your credit card. The card issuer will quickly do that for you. Even if someone has fraudulently used your card, there is an insurance to keep you covered.
2. Accepted everywhere
While some companies are now a days shifting completely towards credit card, these have become important instruments of payment in the modern era. Most of the companies save money when you pay using your card, because the cost for them reduces drastically. In turn, they reward you for using your card. Who knows your card issuer may surprise you with some handsome cashback.
1. Keep an eye on your expenses
If you are habitual of paying by cash, I’m sure you can not recall your expenses from the last year. If you prefer using your credit card, you can always look at your statement for the relevant time period. This is automatic and effortlessly done for you. Credit card is just like a cake. You do not eat the entire cake if it is in front of you. You just keep enjoying it for a longer time. If you can master the art of using your credit, you will end up saving at least 8000 rupees an year.
Bonus point: Only go for the credit cards that are lifetime free and have a cashback on any transaction you make on the card. The market has too many players offering credit cards and you should definitely compare and pick the best one for yourself.