The benefits of owning a credit card

Most people prefer debit cards over credit cards. The difference between both is that when you swipe your debit card at a restaurant or any other place, the amount is deducted from your earnings which is already saved in the debit card. When it comes to credit cards, you have the flexibility of paying the whole amount at a later date in future. The only reason why people opt for debit cards is that they don’t want to end up having a huge debt to pay in the future. However, credit card benefits are too many to ignore and if you are considering buying one, then you should have a look at them. Also, you won’t have any debts if you pay off the balance of your credit card each month.

  • Convenience of using it anywhere

No need of carrying around a cheque book when you have a credit card with you. Moreover, you won’t have to undergo the hassle of travellers cheque or carry foreign currency with VISA or Mastercard holograms on it. With banks like HSBC and Citibank, your money is safe and they have 18 million and 30 million establishments worldwide, respectively. You can also swipe your card at a departmental store, airlines, restaurants, hospitals, petrol pump, etc.

  • Cash advancement facility

If you ever need to pay in cash or transfer funds to your savings or current account with the same bank, your credit card comes to your rescue. This is one feature that makes your credit card all the more a better option. However, it is better to keep the usage of this facility to a minimum as it can attract fee and finance charges.

  • Free credit period

There is a reason why you should pay all your outstanding debts within the period mentioned by each bank. For all the banks the free credit period usually varies from 42 to 52 days. If you are unable to pay off the debt in this period, then interest on the credit builds after the final day making it all the more difficult to pay off your debt. And the whole point of the free credit period goes to waste.

  • Extended credit facility

This one is a flexible option provided to you by many banks. If you are not in the position to pay off the whole debt at once, then you can avail the facility of extended credit. You have to pay 5% of the due amount and you can settle for a finance charge of around 3.1% at a later date.

  • Internet and phone banking

This one is important and a necessity. You need to keep track of your spending and with the facility of internet banking, you can check all your transactions, redeem reward points and even download statement securely. You can even contact the bank through secure online messaging. If not the internet, you can do all this through the phone when you are on the move.


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