While countless finance experts have tried to convince the public to avoid using credit card, it is
now time to do our own research and find out what is best suitable for us, as a millennial user. Since
our generation is the quickest to grow up due to the increasing exposure, shying away from a
perfectly beneficial option without knowing the benefits of credit card doesn’t seem prudent on our part. The experts against the use of credit
card have their own good reason, users end up in debt when card is used irresponsibly.
However, they don’t realise the numerous benefits of using the plastic responsibly.
Benefits of Credit Card-
1. Credit card is like your personal small term loans sanctioned, with an average payment
due date of about 21-25 days sans interest.
2. While improving our credit score and building a strong profile for the investors is the most
commonly declared benefit, we can not dispute the fact that everybody likes a good
discount, and a rebate even more.
Although the cash back idea started with as low as 1% of the total amount of a purchase,
with time it has soared high up to 10%. Some cards even offer cash back as Loyalty Reward or
Fidelity Reward of around 2%!
3. Any type of plastic is arguably safer than cash. But in case of a fraud credit card are safer
then debit card. The amount is not deducted directly from your hard-earned savings and
the standing payments are also not affected.
Your credit rating and CIBIL score remains unharmed and that allows you to show your
credibility to potential lenders and investors.
4. Other significant perks include frequent flyer miles, rewards and gift cards upon reaching
certain milestones.
5. They offer warranty and insurance facilities too. Many cards also have tie ups with various
restaurants, hotel-chains and e-shopping sites, which score you additional discounts.
6. We all know how we are tempted by the latest technology and can’t risk blowing all our
savings in an electronic device. Guess what? You don’t have to!
Credit Card offer easy, convenient and low cost EMIs (Equated Monthly Instalments) which
is less pricey than taking out a loan to pay for a laptop, television or smart-phone.
7. Credit card is accepted quicker than debit cards, especially if you love to travel to
international destinations. Travelling is not considered to be a luxury anymore and most
credit card are universally accepted.
While property owners hesitate charging hotel and car rents from a debit card, they sure
enough don’t shy away from credit card.
8. If you are worried about not being able to keep track of your expenses, you get a monthly
statement recording your expenses without fail. This statement can also help you to draw a
budget for your near and far future.
And in case you need a little more push towards the idea, as a new user you are entitled to get an
Initial One-time Bonus of $150 or more with many credit cards. For more such tips check out this article. With a little bit of prudence and insightful way of expenditures, you stand to save hundreds of dollars annually.
