Credit Cards are like double edged swords. They may lead to significant savings to judicious users and may lead to significant losses to ignorant users.
Many people prefer to stay away from credit cards and rely on other payments instruments but they are missing a great opportunity.
There are many reasons to use credit cards over other payment methods. Some of the compelling reasons are:
1. Interest Free Period: Most of the credit cards offer upto 45-52 days interest free period. Users may earn interest by keeping the money in their bank accounts by using credit cards.
2. Exciting Rewards Points: Reward points offered by some of the premium cards are simply mind blowing. It’s very tough to believe that any credit card can offer reward points worth 33% of the shopping value on Amazon but it’s true.
3. No Cost EMI: Leading online retailers frequently come up with no cost emi offers on many products. Customers no longer need to first save money to buy the product of their choice or pay hefty bank interest.
4. Lifestyle Benefits: Credit cards also come with many lifestyle benefits like Lounge Access, Golf green fee waiver and movie tickets.
There are many more benefits of using credit card. So, it’s a boon to judicious customers.
At the same time, if someone spends beyond his repayment capacity, it can lead to significant financial stress. If the total payment due is not paid on time, it could lead to significant penalties and interest charges for the customer.