Credit Cards: Features and Benefits

Credit cards have become increasingly popular as they can be used conveniently for online and offline transactions. When you use these to pay for your purchases, you can not only save money but also boost your credit score. With umpteen credit card options available, right from lifetime-free cards to cashback and shopping cards, choosing the right one can be quite overwhelming. It is best to understand the benefits each one has to offer.

Here are 10 key features of credit cards:

• Credit Limit

Indian credit cards come with a pre-set spending limit determined by the issuer based on your creditworthiness. This allows you to make purchases without carrying cash.

• Interest-free Period

Most credit cards offer a grace period, typically ranging from 45-60 days, where you can repay your balance in full to avoid interest charges.

• Rewards and Cashback

Many Indian credit cards offer rewards programs that earn you points, cashback, or miles on your spending. These can be redeemed for travel, merchandise, or statement credits.

• EMI Facility

Some credit cards allow you to convert large purchases into EMIs for easier repayment, often with interest charges.

• Online Application and Management

You can conveniently apply for and manage your credit card account online, including bill payments, tracking expenses, and redeeming rewards.

• Discounts and Offers

Credit card issuers often partner with merchants to offer exclusive discounts, cashback, or reward points on specific purchases.

• Insurance Benefits

Certain credit cards provide complimentary insurance coverage, such as purchase protection, travel insurance, or accidental death insurance.

• Airport Lounge Access

Premium credit cards may offer complimentary access to airport lounges, providing a comfortable space to relax during travel.

• 24/7 Customer Support

Credit card issuers typically offer 24/7 customer support to address your queries and resolve any issues related to your card.

• Mobile Wallets

Many credit cards integrate with mobile wallets, allowing contactless payments at stores and online transactions with increased security.

Here are the benefits you can enjoy after applying for a credit card:

• Convenience and Cash Flow Management

Credit cards offer a cashless way to pay, simplifying transactions and budgeting. You can make purchases now and pay later, helping manage cash flow for unexpected expenses or large purchases. 

• Building Credit History

Responsible credit card usage helps establish a positive credit history, crucial for securing loans or better credit card deals in the future. Timely payments demonstrate your creditworthiness.

• Enhanced Security

Credit cards often come with fraud protection features, offering greater security compared to carrying cash. Unauthorised transactions can be disputed, minimizing your financial risk.

• Contactless Payments

Many cards offer contactless payment options using NFC technology, allowing quick and secure transactions at participating stores by simply tapping the card reader. 

• Bill Payments and Subscriptions

You can conveniently pay utility bills, phone recharges, and subscriptions through your credit card, streamlining your financial management and potentially earning rewards points.

• Travel Benefits

Travel-specific credit cards offer perks like airport lounge access, travel insurance, priority boarding, and discounts on flights and hotels, making your journeys more comfortable and rewarding. 

• Additional Perks

Credit cards may offer extended warranties on spends, purchase protection against damage or theft, and complimentary memberships or discounts with partner brands.