Explained: The benefits of using credit cards - Deepstash
Explained: The benefits of using credit cards

Explained: The benefits of using credit cards

livemint.com

6

Keep reading for FREE

Credit Card : Benefits

Credit cards become a valuable financial tool once you learn to use them sensibly and responsibly.

It offers rewards, protection, convenience and helps build an effective credit score. So, what kind of benefits can one reap using a credit card?

To begin with, let us examine some of the top advantages of using a credit card:

9

76 reads

Credit grace period (Spend Now Pay Later):

Arguably, the most attractive feature of a credit card is the interest-free grace period that can be availed by users provided, the amount to be repaid, is cleared by the due date.

IndusInd Bank allows up to 50 days of credit to its customers without having to pay interest.

9

59 reads

Credit score:

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.

9

57 reads

Rewards and Benefits:

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.

9

72 reads

Cash flow planning:

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.

9

39 reads

Credit card EMIs:

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.

9

34 reads

Instant pre-approved loan:

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.

9

47 reads

CURATED BY

kokhul_736

Kokhulash.com

CURATOR'S NOTE

The benefits of Credit cards are discussed in this article.

Ready for the next level?

Read Like a Pro

stash-superman-illustration

Explore the World’s

Best Ideas

200,000+ ideas on pretty much any topic. Created by the smartest people around & well-organized so you can explore at will.

An Idea for Everything

Explore the biggest library of insights. And we've infused it with powerful filtering tools so you can easily find what you need.

Knowledge Library

Powerful Saving & Organizational Tools

Save ideas for later reading, for personalized stashes, or for remembering it later.

# Personal Growth

Take Your Ideas

Anywhere

Organize your ideas & listen on the go. And with Pro, there are no limits.

Listen on the go

Just press play and we take care of the words.

Never worry about spotty connections

No Internet access? No problem. Within the mobile app, all your ideas are available, even when offline.

Get Organized with Stashes

Ideas for your next work project? Quotes that inspire you? Put them in the right place so you never lose them.

Join

2 Million Stashers

4.8

5,740 Reviews

App Store

4.7

72,690 Reviews

Google Play

Ashley Anthony

This app is LOADED with RELEVANT, HELPFUL, AND EDUCATIONAL material. It is creatively intellectual, yet minimal enough to not overstimulate and create a learning block. I am exceptionally impressed with this app!

samz905

Don’t look further if you love learning new things. A refreshing concept that provides quick ideas for busy thought leaders.

Sean Green

Great interesting short snippets of informative articles. Highly recommended to anyone who loves information and lacks patience.

Shankul Varada

Best app ever! You heard it right. This app has helped me get back on my quest to get things done while equipping myself with knowledge everyday.

Laetitia Berton

I have only been using it for a few days now, but I have found answers to questions I had never consciously formulated, or to problems I face everyday at work or at home. I wish I had found this earlier, highly recommended!

Giovanna Scalzone

Brilliant. It feels fresh and encouraging. So many interesting pieces of information that are just enough to absorb and apply. So happy I found this.

Ghazala Begum

Even five minutes a day will improve your thinking. I've come across new ideas and learnt to improve existing ways to become more motivated, confident and happier.

Jamyson Haug

Great for quick bits of information and interesting ideas around whatever topics you are interested in. Visually, it looks great as well.

Read & Learn

20x Faster

without
deepstash

with
deepstash

with

deepstash

Access to 200,000+ ideas

Access to the mobile app

Unlimited idea saving & library

Unlimited history

Unlimited listening to ideas

Downloading & offline access

Personalized recommendations

FAQ

Claim Your Limited Offer

Get Deepstash Pro

Supercharge your mind with one idea per day

Enter your email and spend 1 minute every day to learn something new.

Email

I agree to receive email updates