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User’s experience with Credit Cards
Some people say that using a credit card is a very good option. But the left ones were totally against using a credit card. But whenever we use a credit card, we get more than 5 advantages of using it.
There are 2 types of people.
- The ones who use credit cards every day.
- The people who think cards are just a debt trap. And who gets annoyed by credit card companies calling them up to get credit cards.
Some people also gets annoyed from the Credit card Spams.(Just like Babu Rao????????????)
But, there is a sweet spot, where you can both enjoy the benefits of credit cards. Without falling into problems!
So, let’s quickly go through the basics of debit and credit cards. Simply assume, a debit card is like a prepaid service, instantly deducts money from our bank account after purchase. In credit cards, the banks pay that money to the person we want. And whenever they generate our credit card bill, we have to pay that amount. To the bank within a specific period. So, it’s like taking a small loan from the bank. Now that, It’s out of the way we can talk about its benefits!
45-50 Days Interest-Free Loan with Credit Cards
Most credit card companies provide a 45-50 day interest-free loan. For Example, We have a credit card with a billing cycle of 1st to 30th of the month. The bank generates bills on the 1st of the next month of our present month purchases. So we can utilize the credit we have in our CC at this time. And when we get our bill, we have at least 45 days of time to pay it. This includes 15 days of the month we get the bill. In these 45 days, we can use our money to invest in stocks or deposit them in a savings account. So that we can earn too much interest in these 45 days.
It is an independent authority, which keeps a record of our personal information and credit history provided by our bank. In this, they usually analyze our transactions, that if we are paying the CC bill on time, etc. After analyzing on data, they generate a CIBIL score from that data. And they link the CIBIL score with our PAN card. This sore determines our timely CC repayments, utilization of CC, and other factors.
A high CIBIL score has many benefits like lower interest rates on loans, better benefits, and rewards. Also quicker approval on credit applications, and much more!
Credit Card No Cost EMI
Most of us were already aware of no-cost EMI, which means EMIs with no extra charges like interest. They provide this on select stores like Amazon, Flipkart, Vijay Sales, etc. Where we can pay the price of a product in parts instead of as a whole. By which we can use that money in stocks, or deposit them in the savings account. To earn money without doing anything. Useful for large and expensive purchases.
Who doesn’t like cash back!? Nowadays, most credit card companies offer some sort of cashback when we use their credit cards. Debit cards also offer discounts, but less. This means if we’re getting 10% off up to Rs.1,000 on a particular item. Then in most of the cases, you’ll get 10% off in CC, but up to Rs.1,500. They were able to provide that cashback as they do a tie-up with these brands.
Nobody can expect, that how much they’ve spent till the end of a month! But, credit cards can save us in these situations. Credit card bills have clear indications of where and how much we transact the credit card. This makes our way to easily track expenditures of a month.
Credit Card Rewards
One of the main benefits of using a credit card is getting reward points. Which can use to redeem rewards like gift vouchers, products, discounts, cashback, and much more.
Saving Tax on expenses
While using a credit card, we’ll get the report of transactions, on the payments on expenditures we spent. And we can use this report while paying income tax, to get a huge discount on our income tax.
So, here are some benefits of using a credit card. A smart person can use a credit card to get a complete advantage! Getting a credit card is very easy. And makes working with money a lot easier and safer. Also, gives some extra funds in case of an emergency.
If you want to know some disadvantages of using CC click here
So, guys, that’s it for today’s blog. Hope you found this blog informative. If you have any queries then please comment down below. Also please Subscribe to the Sarcastic Sindhi YouTube channel to keep yourself informative always.
Until then Stay Sarcastic, Stay Safe.