Features and Benefits of Credit Cards
The benefits of using credit cards are aplenty. A credit card allows easy access to credit so that you do not have to wait for next month’s salary to purchase essentials. Credit cards are also a lifesaver in emergencies wherein you need immediate access to funds. Thus, you stand to reap endless benefits if you use your credit card wisely and responsibly. Let us have a look at common credit card benefits and features:
Credit Card Features
Some of the key credit card features that are common for most cards are listed below:
EMI Payments
A credit card can be used for buying high-end items at affordable EMIs. These can be repaid over a flexible duration of 3-36 months, depending on the bank.
Easy Approval
You can apply for a credit card both online and offline. Furthermore, the credit card eligibility criteria are easy to fulfil, and basic documentation is required to get a card approved.
Customised Card Limit
The credit card limit varies from card to card and lender to lender. It is largely based on your credit score and debt-to-income ratio. Remember, the higher your credit score, the higher could be your credit limit.
Loans During Emergencies
If applicable, a personal loan against a credit card may be applied for in case of emergencies.
Cash Withdrawal
Another benefit of a credit card is that you can withdraw advance cash from ATMs in case of emergencies.
Discounts/Offers/Rewards
The most popular credit card benefits are the discounts and offers which you can enjoy across a range of products. In addition, you get credit card reward points on select transactions with your card. These points can be redeemed for more discounts, cashbacks, or other rewards later.
Secured Transactions
Most credit cards have multi-factor authentication and advanced security features to ensure safe transactions.
Benefits of Using a Credit Card
There are several benefits of using a credit card. You get a host of advantages that are similar across a range of cards. Here are some common credit card benefits you need to know about:
Benefits of Using a Credit Card
Big-Ticket Products On Credit
You can purchase high-end products with your credit card. Not only do you get an interest-free period, but you can also convert the purchase into affordable EMI. Consequently, your budget does not take a hit.
Freedom From Cash
A credit card eliminates the need to carry cash around with you for shopping. It also facilitates online shopping for your convenience.
Access to Rewards, Cashback, and Offers
Credit card uses and benefits mainly lie in the specific discounts, reward points, and cashback offers that can be obtained when making payments. Special credit cards may be linked to exclusive retailers, web portals for shopping, travel sites, etc. Therefore, rewards vary accordingly from one card to another. With some travel credit cards, you can earn airmiles while travelling. Similarly, you can also get credit cards offering airport lounge access both in India and internationally.
- Credit Card
- Credit Card Balance Transfer
- Fuel Credit Card
- Business Credit Card
- Corporate Credit Card
- Credit Card against FD
- Credit Card Settlement
- Credit Card Documents
- Credit Card Eligibility
- Credit Card EMI
- Credit Card Interest Rate
- International Credit Card
- Credit Card Limit
- Credit Card Loan
- Credit Card Lounge Access
- Credit Card Login
- Credit Card Bill Payment
- Credit Card Pin Generation
- Credit Card Reward Points
- Shopping Credit Card
- Credit Card Statement
- Credit Card Types
- Credit Card Billing Cycle
- What is a Credit Card
- Best Credit Card In India
- Amex Bank Credit Card
- Axis Credit Card
- Bank of Baroda Credit Card
- Canara Credit Card
- Citi Credit Card
- HDFC Credit Card
- HSBC Credit Card
- ICICI Credit Card
- IDFC Credit Card
- Indian Bank Credit Card
- Indusind Credit Card
- Kotak Bank Credit Card
- LIC Credit Card
- PNB Credit Card
- RBL Credit Card
- SBI Credit Card
- South Indian Bank Credit Card
- Standard Chartered Credit Card
- Union Credit Card
- Yes Bank Credit Card
FAQs on Credit Card Features and Benefits
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✔️ What are the advantages of a credit card?
Credit card advantages include:
Freedom from carrying cash
An interest-free credit period to pay for your purchases
Reward points, discounts, and offers on transactions
Emergency cash-withdrawal/loan facility against the credit card
Easy EMI conversion option
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✔️How can you get the most out of your credit card?
Discover Rewards: Choose a card that offers you maximum rewards, especially if you are a shopper and spend a lot on lifestyle purchases.
Select a Card With Reduced Interest Rates: When you purchase goods on EMI, interest is applicable. Interest charges on EMIs should be low as you shouldn’t end up spending more while trying to make the purchase more affordable.
Research About Charges: Make a note of interest charges, late payment fees (for delayed settlement of statements/bills, or part-payment), and transaction costs for ATM withdrawals.
Learn About Extra Benefits: Several credit cards come with extra advantages in the form of free lounge access at airports, offers at partner retailers, and more.
Evaluate Limits for Credit Card Loans: Certain banks offer loans against credit card limits. These can be used in the case of financial emergencies.
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✔️Do credit cards offer a credit-free period?
Generally, credit cards offer an interest-free period of 30-55 days. During this period, you do not incur any interest on your credit card payments. In case the dues aren't cleared within the stipulated time, interest rates are charged as per your credit card issuer’s policy.
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✔️Do credit cards impact credit scores?
Yes. Using a credit card affects your credit score as it helps build your credit history. Hence, it is important that you clear your credit card dues on time to protect your credit score.
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✔️Will I be able to withdraw cash from my credit card?
Yes, you can withdraw cash using your credit card. However, certain credit card cash withdrawal charges may be applied in most cases depending on the issuer’s policies.
