7 Best Reasons To Use Credit Card..!

7 Best Reasons To Use Credit Card..!

A credit card is a payment card which allows you to buy goods and services on credit and pay for them later on. With the rise in the volume of trade done online, the use of credit card is on the rise. 

There are many banks offering a variety of credit cards catering to various customer needs. There are two types of credit card: Secured and Unsecured. 

Unsecured credit cards are one which requires no security. With stable income and good credit score, you can easily avail an unsecured credit card. 

In contrast to it, a secured credit card is the best option for anyone with a low credit score. 

A secured credit card can be availed against a bank account or any other financial asset such as fixed deposits etc. as security. 

The interest rate on a secured credit card is higher in comparison to the traditional unsecured credit cards. 

There are several benefits of using a ICICI Credit Card. 

Seven of the main benefits are given below:

Reasons to Use a Credit Card

1. Opening Bonus

Unlike debit cards, different credit cards offer various kind of joining bonuses to customers. To get a great deal of bonus, it is important that your credit score is good and you fulfill all the eligibility criteria laid down by credit card issuer. 

The joining bonus comes in different forms like a welcome gift, shopping vouchers from select brands and additional reward points etc.

2. Reward Points

With every purchase made using a credit card you earn reward points, this is one of the best features of using a credit card. These reward points can be redeemed at any partner stores. 

Before selecting a credit card it is advised that you analyze your spending pattern and choose a card which fits well with your spending pattern. 

Selecting a credit card which does not match your spending pattern will be of no use to you. 

This is because you won't be able to redeem reward points due to an opposite spending pattern.

3. Cashback

Cashbacks are an amazing way to reduce the cost of your purchase. From time to time like on special occasions or on spending a particular amount of credit card offers cashback to customers. So, using a credit card helps in cutting on the shopping bills.

4. Provides Line of Credit in Emergency

A financial emergency may occur anytime due to several reasons like a medical emergency, examination fee etc. 

You may not have enough cash to deal with the financial emergency and availing a loan is a lengthy process. 

In such a situation credit card comes to your rescue, you can use a credit card for paying for your medical bills or examination fee etc.

5. Credit Rating

A credit card can be used for building and improving credit score. If your score is low, use a credit card and pay all your bills on time before the due date. 

This will surely help in improving your score. On the contrary, If you don't pay your credit card bills on time, even if it is a small amount it will have a bigger negative effect on your credit score.

6. Interest-Free Period

A credit card billing cycle is followed by a grace period which is referred to an interest-free period. 

This is a period of 18-20 days during which if you pay your credit card bill neither any interest is charged nor it affects your credit score. 

Hence, credit card comes with a line of credit which you can access without any interest charges for 48-50 days.

7. Alternative to Cash

With credit cards in your wallet, you don't need to carry cash everywhere. Credit cards have universal acceptance, i.e. across the globe. 

Whether you travel within India or outside India, you can purchase goods and services at a single swipe without cash.

Keeping the above-listed benefits in mind apply for a credit card and enjoy the benefits attached to it.

You can apply it online as well as offline. For quick and easy approval apply online either by visiting bank's website or through different online aggregators.

.Nov 23, 2018

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