Keeping a credit card into your wallet comes to be a prestige issue in the current scenario.
Not only that it really worth it!
Proper handling of the card gives you tons of benefits, You will learn most of the benefits really made you
financially independent.
Cutting introduction short, I come straight to the point.
6 Privileges of using a credit card
If you find closely (even with the magnifying glass) you are unable to find any miscalculations towards benefits to using, the deal is don't take advantage of it.
Simple to carry - Single plastic card even if you desire to carry a huge amount of money, you don't have to worry. Even if you lost your card, your money is safe, you can quickly cancel or block your credit card for any forgery.rnBuild your credit rating - Building your credit score, a credit card is the best score all you have to do is making payments on time, because you are getting kind of loan from the issuing authority, and they want their installment or bill payment on time. That will raise trust as well as credit rating.rnInterest-free days - Credit Card itself reveal the fact that you are getting credit on your spending for a few days (depending upon the nature of card). Indirectly payment of your bill within interest-free days or within the deadline.rnEarn Cashback or reward points - In the current market scenario getting any kind of reward points or cashback become a part of the economy transaction for the common man. These reward points can be redeemed for booking tickets, bill payments, movies, dining, etc.rnEmergency Cash - Almost every credit card depending upon the limits arrange emergency cash from ATM. Remember that you have to repay everything you owe.rnCredit cards work in any currency - Credit card also works in any currency in case you are traveling abroad, meanwhile, markup fee is applicable. You also get full or additional benefits like reward points and cashback on spending from your credit card.
For every advantage there would be some disadvantages too, credit card holders complaining about a lot of discomforts, which is very important for the new applicant. There is some downside of using a credit card.
Few Disadvantages of using a credit cardrn Paying High Intrest Rate - Timely payment up to due date (No problem), in case, If you carry a balance from month-to-month, you’ll pay interest charges and interest rate is huge.rnEffect on credit score - Credit rate depends upon timely payment that the key if you miss whatever the reason is it will directly affect your credit score. (Discloser - I personally issued standing instruction to my bank to make credit card bill payment from my account on due date) now it's not my problem.rnCredit card fraud - Today Credit card forgery attempt heard a lot, people due to their own mistakes or stuck in some technical forgery lost all their credit limit available with your credit (
virtual credit cards are the good example to save your original card). So always be aware.rnCash advance fees and charges - Withdrawal of cash advances from your credit card through ATM or any other way balance your situation in an emergency but on the other hand, you have to pay a huge percentage of fee and interest charges.rnHow to find the right credit card?
There are tons of credit card with the verity of benefits issued by different banks to their customers, some cards are profitable for fuel, some are for grocery, some are for travel or movie and many more.
The first step towards finding your best credit card is to understand your major pattern of expenditure. There is verity of people:
Housewives use to buy stuff for their house.rnYoung people use to shop online.rnEmployee use to enjoy weekends, moviesrnSome got to travel a lotrn...and so on
For every major requirement, there is a card available in the market. There are, however, a few features that you should take into account before you compare credit cards and decide which one is the best for you.
Cashback: Most of the credit card gives you cash back on your transaction, on the other hand, If you calculate you will double benefit 1) The percentage of cash back, 2) Credit time limit. Always check which card have a cash back option is beneficial in the long run.rnReward Schemes: Reward points is another way to get benefited to the customer, So choose your reward scheme and card which suits your expenditure pattern.rnCard Fees and Charges: Every credit card annual fee and renewal fee is different and they also provide a waiver scheme to their customer subject to expenditure limit. If you are using the card abroad the charges vary to different cards.rnPayments: Another aspect to keep in mind is to take a look at the minimum repayment amount required by the card issuing authority, as well as the interest-free time period.
There is a lot of voice which have a negative view on credit cards, I myself don't completely deny this fact, but the problem is the user tendency towards the benefit of the card. A lot my user misuse the benefit and stuck in the middle of the scenario.
But Still, My personal experience and recommendation are you can go for it.