4 Ways how using a Credit Card is Beneficial for Financial Health
You may have been advised against using your credit card for making payments.
But, did you know that making the best use of the credit card strategically can also make the plastic money a boon?
Yes, using a credit card can help you earn several other benefits which may not at all be possible while using a debit card.
On one side, you may be free from keeping the cash with you while using the credit card. But, even not using it correctly and in a balanced way may also lead you to fall into a debt trap.
No matter what types of credit card you use, it is vital to use it moderately. Sometimes, you may be lured by what a credit card offers and may apply for it without analyzing its benefits. As a result, being tactical is the key.
In the same context, here are some pointers that will let you know how using a credit card is beneficial for your financial health. Read on!
Here’s how using a credit card could be a boon
- Improve your Credit Score
When you use your credit card responsibly, it may help you in improving the financial health on multiple parameters.
Keeping a disciplined usage which means keeping the credit limit usage within 40% may help you enhance your CIBIL Score.
Another thing is paying the credit card bills by the due date and in full may take the Credit Score up.
As you may be aware, keeping a higher CIBIL Score is a must for availing future loans at a lower rate of interest.
As a result, you may be able to fulfil many of your wishes like availing a home loan to buy a dream home at a lower rate.
When that happens, you will get to pay a lower EMI towards future loans leading to savings.
Thus, you need to take the first step towards creating a healthy financial profile. And it starts with the credit card bill payment on time, every time.
- Enjoy travel perks
Some leading credit card companies let you access the airport lounge for free for a number of times in a quarter.
Hence, the next time you are waiting at an airport or if your flight is delayed, you can simply use your credit card and relax at a lounge.
The airport lounges offer better seating and restroom facilities along with refreshments and Wi-Fi.
What’s more, it is not the only benefit that you get via the credit card offers. You can experience a range of discounts, deals and air miles which may reduce the ticket costs.
Some credit card lenders also let you enjoy the priority check-in, extra baggage allowance, early bag-out on departure and beyond.
- Various types of credit cards
In the market, there are multiple types of credit cards available which may fulfil each of your preferred spending patterns.
Someone who may be using a credit card more for fuel purposes may get a credit card complimenting the needs.
As a result, you may also get deals and discounts on fuel at gas stations with surcharge waived off topping the list.
Similarly, if you are a movie buff and watch movies every weekend, you can get a credit card that may offer 1 + 1 free movie tickets during week offs.
Such credit card offers may come at an annual charge, but even that could be waived off if you spend up to a limit every year.
Many lenders offer a credit card that comes with the numerous benefits clubbed into one so that you don’t need to apply for multiple cards.
- The convenience of the EMI option
One of the prime advantages of availing the credit card offers is the using of the EMI option.
This way, you may spread the cost of your bigger spending over a tenor and pay only a fixed EMI amount.
It will help you manage other expenses in life without issues as well as there will be no issues for you to pay off a small value bill.
Nowadays, you can find many lenders offering you the facility of No Cost EMI. The facility helps you in paying only the exact EMI amount per month and nothing extra.
Hence, when you don’t pay anything above and over the EMI figure, you end up saving huge.
Having a credit card is surely a great move to manage and improve your financial health without hurting your finances.
All you can do is share some basic personal information such as name and mobile number to check out your pre-approved loan offers now.
Author Bio:
Gaurav khanna is an experienced financial advisor, digital marketer and writer who is well known for his ability to predict market trends. You can find Gaurav on Linkedin.
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Category: Credit Cards
