Nowadays, almost everyone carries a credit card. The majority of people used to be afraid of it and believed that it was a debt spiral that only went down; however, over time, things changed as more people gained access to the internet, learned about credit cards, challenged common misconceptions, and came to their own conclusions about whether or not it was a wise investment.

One should use a Credit Card for:

Helps in building credit history:

Users have the option to increase their credit line with credit cards. And that is crucial because it enables lenders to see your actual current credit record depending on how you use and return your credit. Using a credit card is crucial for any long-term loan or rent application since banks and other lenders frequently use credit card activity to assess a potential applicant's credibility.

Welcome bonuses:

To attract more customers almost every credit card offers welcome benefits to its new users, it may be in the form of reward points, gift vouchers, complimentary subscriptions, etc. The type of benefit varies from card to card. Naturally high-end premium credit cards offer more attractive welcome benefits than basic credit cards. Whenever searching for a fresh credit card, users should undoubtedly take joining perks into consideration because they end up making a credit card more alluring.

Interest-free period:

Almost every credit card offers an introductory 40-55 days of interest-free grace period after the time of issue. It suggests that users are free to use their credit card at that time and won't be assessed charges (interest) throughout that whole period. If you’ve been eyeing a particularly expensive item it is advised to make that purchase during the grace period so that you won’t have to pay any extra interest on that particular transaction. But always remember to pay your monthly bills in full or else you’ll be charged interest on the remaining balance.


Credit cards are the most convenient method of transacting, you do not need to carry tons of cash in your purse or pocket which in today’s world is very dangerous to carry. You can purchase anything and everything from any corner of the world, with this little piece of plastic, called a credit card. Not only this but credit cards allow the biggest advantage to their users which is the option to buy now and pay later.

Rewards and cashback:

Apart from readily available credit, almost every credit card comes with its own unique reward system and benefits. Rewards may be in the form of reward points, cashback, or miles. Credit cards let users earn reward points through every transaction they make and then let them redeem the collected points on products available in their catalogue. Cashback is the easiest method to earn something back when making a purchase, in simple terms, it means earning a percentage back on your transactions. Miles or air miles are most helpful for frequent travellers.


Users have the option to make a significant purchase on their credit card as a way to delay repayment if they don't want to use all of their savings on it immediately or disrupt their financial plan. Additionally, they have the option of settling their purchase in equalized monthly installments to avoid paying something off in one go and emptying their bank account. Almost every card in the market offers its users the EMI facility


There are many insurance coverages that can be offered by credit cards, based on their kind and provider. Credit cards provide extra security by way of insurance against missing, destroyed, or fraudulent card transactions. Credit cards provide many types of insurance coverage like accidental death, air accident cover, misplaced or lost baggage insurance, health insurance, purchases insurance, stolen card, or even unpaid debt in the case of unfortunate death of the cardholder. 

Accepted globally:

It's dangerous to travel with cash. Additionally, it's difficult to convert money for trips abroad at unfavorable exchange rates. When users possess a credit card, they can go worldwide without bringing extra cash. They can utilize a credit card to purchase almost anything since it is one of the most widely used means of exchange. Not only is a credit card accepted worldwide it also provides benefits to its users with international offers and world-class airlines.

Keeps a record of your spending:

The benefits of a credit card not only include the above-mentioned perks but it also helps a user keep track of their expenditure. Nowadays, almost all major credit card issuers have their own smartphone application. Users can either install their card issuer's application on their phones to keep track of their spending or they may check their transactions by logging into their online credit card accounts. Many credit card issuers provide thorough expenditure summaries that categorize your transactions and highlight how and where you've been spending the most money.

Travel benefits:

Apart from rewards and cashback, there are some particular credit cards specially curated for specific needs, like if you are a regular traveller, then a travel credit may benefit you the most. Travel credit card not only provides rewards, cashback, and EMI facility but they offer special benefits related solely to travel, like air miles, complimentary airline memberships, and even insurance. With some airlines that offer air miles, you get points or miles for every purchase. These can then be applied to earn a free flight or a discount on your next trip's ticket price. In general, credit cards with airline partners provide flight miles as a benefit.

Bottom Line: 

There are countless benefits to owning a credit card from earning rewards and cashback to building a strong credit score, but you have to stay disciplined throughout your journey, pay your bills on time, don’t exceed your credit limit, use the credit card responsibly and you are good to go. Credit card users can take advantage of several wonderful advantages. Choose the ideal credit card for yourself by doing thorough homework. Regardless of the mode of transaction, you select, just be sure you can manage your money well.