Credit Card Benefits: We all use credit cards in case of financial emergencies. It not only provides financial assistance to the user but also helps in improving the credit score by paying the utilized amount on time, but do you know that the work of credit card is only to provide financial assistance. Not available, but many other benefits can be derived from it.
helps in increasing credit score
The biggest advantage of using a credit card is that the money is released without interest. When we borrow money from any other source, we have to pay back the principal as well as interest in return. At the same time, you do not need to pay interest within 50 days for using money from any credit card.
Hence, this interest-free amount can be used to invest in Fixed Deposits (FDs) and earn interest at this savings rate. Later, when your credit card due date approaches, pay from another bank account.
get insurance compensation
Another advantage of credit cards is insurance payments. Many credit cards offer various insurance benefits. They offer a host of benefits such as accident insurance, travel insurance, purchase protection. So before buying a credit card also check whether it offers you insurance coverage or not.
Reward Benefits
Using a credit card may entitle you to points, cashback, air miles and other benefits depending on the features of the card. Therefore, before choosing the card, choose it according to your need. For example, if you prefer cashback, choose a cashback credit card. On the other hand, if you prefer gift certificates, choose a credit card with reward points.
