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 Earn credits through your credit card
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Earn credits through your credit card

The word cash is so passé, so is the use of it. Times are changing, and so should we. Electronic money transfer has certainly made our lives easier, and even more in the case of credit cards. People always prefer to use credit cards over cash simply because it allows them to buy more than what they can afford – at that point of time. Of course, a healthy habit to follow while owning credit cards is that, the bills need to be paid regularly.

But, here’s another advantage though, you can choose to pay back at times you feel convenient, for instance either the end of every month or every three months (provided you pay 5% of the bill within the due date and understand that there is high interest charged for payments past due date). The point is to pay them then and there, without further delay. There are several advantages associated with credit cards, provided you ensure that you pay your credit card bills on time.

Having said that, let us take a more detailed look into the various positives to owning credit cards. Apart from the apparent reason, you can also earn credits or points by using your credit cards as often as possible. The more you make purchases via credit cards, the more number of points you will accumulate against your account. These points can be redeemed later and used to buy an exciting gift! Depending on the number of points collected, you can avail the corresponding gifts.

Also, these gifts vary from one bank to another. But, yes these are indeed useful things you might otherwise think twice before buying. For example, it could be the latest version of a smartphone, or a grand wrist watch, or even some precious jewellery.  Do remember: there is no point in using your credit cards often, when you are unable to pay the bills on time.

Another great advantage would be – having a positive credit history. This is in fact a very vital aspect that every bank looks at especially when you happen to apply for loans. Irrespective of the type of loan you apply for, having a good credit history will help you maintain a great credit or CIBIL score which is one of the deciding factors for granting loans.

The best thing about credit cards is while they help you spend a little too much, a little too fast, they also help you avail loans easily in the future. As a matter of fact, if one does not have any credit history whatsoever, chances are very high for their loan application to be rejected. So, go ahead and learn to use your credit card wisely.

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