Since credit card transactions are similar to availing loans, all such transactions are reported to the credit bureaus that use them for calculating, as well as building your credit profile.

Credit scores become crucial if you plan to avail loans towards business expansion, vehicle purchases, personal needs, or simply buying a new home.

A healthy credit score empowers borrowers to negotiate the best deal with the lending institution, thereby helping them fulfil their financial goals.

These include benefits like discounts, cash backs, reward points, loyalty credits, complimentary club memberships, free access to the airport lounges, among many others.

You must select the card that offers the most and matches your lifestyle requirements.

You can time your big-ticket purchases in a way that can help you gain a longer credit period.

• Making purchases through credit cards in the initial days of the billing cycle can maximize the grace period.
• Some card issuing companies provide a graphical view of your spending pattern that are divided into period buckets basis expense categories.

This can help you analyze your expenses and make necessary adjustments to your cash flow plan.

Banks and financial institutions offer Cardholders the option of paying for certain purchases through Equated Monthly Instalments (EMI).

In fact, several card issuers even walk that extra mile, to offer interest-free EMIs with tenures ranging from 3 to 36 months.

This is a useful option for those who do not wish to pay for large purchases in one go. Instead, they are comfortable spreading out the re-payments over a few months.

Credit card issuers offer pre-approved loans to card users with a healthy re-payment record and credit profile.

Some credit card issuers offer loan amounts (with tenures ranging from 6 to 36 months) that are over and above the approved credit limit.

This comes in handy in case of financial exigencies.