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:

Credit Card : Benefits

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.

Credit grace period (Spend Now Pay Later):

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.

Credit score: 

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.

Rewards and Benefits: 

You can time your big-ticket purchases in a way that can help you gain a longer credit period. <ul><li>Making purchases through credit cards in the initial days of the billing cycle can maximize the grace period. </li><li>Some card issuing companies provide a graphical view of your spending pattern that are divided into period buckets basis expense categories. </li></ul>This can help you analyze your expenses and make necessary adjustments to your cash flow plan.

Cash flow planning:

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 EMIs:

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.

Instant pre-approved loan: 

The benefits of Credit cards are discussed in this article. 

Benefits of using credit cards: It offers rewards, protection, convenience and helps build an effective credit score

Explained: The benefits of using credit cards

I try to avoid anything that would lead to debt, most people would too yet even though credit cards fall in this category; it remains one of the most popular means of payment. Why?

Why do people get credit cards?

If you don’t have a credit history, you won’t have a good credit score. A credit score is a number that rates your credit risk. Creditors use it to determine whether to give you credit and what terms to offer you. Having a high score can make it easier for you to get a loan, rent an apartment, or lower your insurance rate. Having a properly managed credit card increases your credit score.

1. Building Credit

If you need to buy something and you don’t have the cash on hand. A credit card can be a very expensive type of loan but circumstances can make it difficult to ignore.

2. Emergencies

With a credit card you can get cash back on your purchases, airline points, discounts, coupons and more. These rewards are not available for Debit card users

3. Rewards

Most credit cards can be used internationally and online, whereas cash and bank cards often cannot, you’d have to use some form of currency exchange or maybe PayPal (if it’s an option).

4.Convenience

For some transactions providing a credit card is compulsory. For instance, hotel reservations or car rentals may require that you submit a credit card as this would ensure that whatever extra costs you run up can be easily recovered.

5. Inevitable

These ideas help to understand why credit cards remain a popular means of payment despite being a form of debt.

There are not many things more familiar than credit and debit cards yet while their popularity remains undeniable, some parts of their workings remain obscure especially with credit cards. Understanding credit card payments, rewards, debts and interest can provide a major boost and security to your financial well-being and in the sections listed below, I’ll…

Rewards, Debts and Interest: A Complete Guide to Credit Card Management

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You must first determine your budget before taking any meaningful measures. Do you realize how much debt you have in total? How much do you charge?You may begin by making a list of all of your existing debts.Consider the following scenario:credit card debt $6500.54student loan $11,074.44car loan $8,284.10second credit card debt $2,366.15other expenses $2,545.63Be as precise as possible. No numbers should be cut off. Be as precise as possible

3. Make a financial plan

Putting more money toward your debt is the key to paying it off quickly. This is why the first step is to closely examine your budget. Are there any expenditures that you could eliminate? Are you able to reduce your overall spending?

2. Reduce Your Expenses

Now that we’ve established what constitutes good and bad debt, we can go on to discuss revenue. You should have a clear view of your finances and the revenue you can earn each month before you can think about paying off your debt.So, if you made the same amount of money as you do today, how long would it take you to pay off all of your debt? Is it better to wait three months or twenty years? It’s overwhelming when you think about it in those words. How are you going to pay off all of that debt?

1. Earnings First

Work hard, stay positive, and get up early. It's the best part of the day.

What’s up, it’s @hackedongrowth here, The majority of individuals nowadays are in debt. Maybe you owe money on your school loans? Or a home loan? Perhaps you owe a lot of money to your business? Whether you’ve maxed out your credit card or are drowning in a sea of business loans, figuring out how to get out of debt might be difficult.

4 Methods for Paying Off Debt

Your credit score is calculated using a mix of data, including your payment history, how much credit you have and length of credit history.Here's the golden rule: Only charge what you can afford to pay every month in full.Keeping your balances low will help boost your credit score. Aim to keep your debt utilization — which is amount of available credit you actually use — as low as possible.There's no need to have a wallet full of credit cards, but having one or two that you use responsibly will help your score.

Key Points For Building Credit

You can check your credit report for free once a year from each of the three main credit reporting agencies, TransUnion, Equifax and Experian. But your score won't be included on these free reports — you'll usually have to pay to see it.If you do purchase your score, it usually comes with a list of risk factors, explained Rod Griffin, director of public education for Experian. This will give you a good starting point on what areas you need to improve."There are as many as 300 different risk factors in a credit score," he said.

1. Know your credit risks

Your payment history is the biggest factor in determining your credit score. Lenders don't want to give money to someone who has a history of missed payments.Paying a bill more than 30 days late can drag down your score. "One single missed payment can drop your score anywhere from 100 to 300 points," said McClary.If you went through a period of time where money was tight and you were late with some payments, it's time to right the ship. Curb your spending and start a track record of paying your bills on time.Here's the golden rule: Only charge what you can afford to pay every month in full.

2. Pay your bills on time, all the time

Keeping your balances low will help boost your credit score. Aim to keep your debt utilization — which is amount of available credit you actually use — as low as possible."You never want the balance to be more than 30% of the credit limit — that is, any one card or in total," said Griffin.If you are carrying a balance on any of your credit cards, create a plan to get them paid off as soon as possible.

3. Manage the debt you have

There's no need to have a wallet full of credit cards, but having one or two that you use responsibly will help your score."You should apply for credit when you need it and know how you are going to repay it," said Griffin.But if you don't have a credit card, he recommended opening an account and making a small purchase each month and paying it off. "Credit cards have a little more weight than installment loans because you decide how much to charge and pay," he explained.

4. Open a credit card if you don‘t have one

Good credit scores don't just happen overnight.For instance, the positive effects of opening and making on-time payments on a credit card could take a few months to show in on your score, according to Griffin.Correction: An earlier version of this story stated that paying a bill a few days late could hurt your credit score. A payment would usually need to be more than 30 days late before being reported to the credit bureaus.

5. Be patient

If your credit score is low, don't panic. Take these steps to improve it. 

Money

5 easy steps to improve your credit score

<ul>
<li>Spend less money than you earn</li>
<li>Always plan for the future: you should always look forward beyond the current month</li>
<li>Make your money make more money: invest, start a business or invest in your education.</li>
</ul>

The Golden Rules of Personal Finance

How you manage, spend, and invest your money can have a profound impact on your life, yet very few schools teach these important skills. Learning financial savvy can take a while, but the basics are fairly simple and never change. Here's where to get started.

Explained: The benefits of using credit cards

Rewards, Debts and Interest: A Complete Guide to Credit Card Management

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5 easy steps to improve your credit score

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