A credit card is a card that is issued by a financial company and which gives the holder the option to borrow funds, primarily at the point of purchase. They are usually used for short-term financing, and institutions which provide credit cards generally charge interest. A credit card can be used to make purchases, reduce the cost of expensive debts or to earn cash back and rewards. It is a type of loan that you avail from a bank or any other financial institution. Interest is added to the amount a person spends if he or she does not clear the balance at the end of the month. Furthermore, banks provide awesome credit card offers that more often than not lure users into spending more with their cards. This result in a person actually spending more than what they are actually capable of. A person should be careful enough not to fall into such a trap if he or she uses a credit card.
Some of the benefits of using credit cards are:
• Cash back: Banks provide credit card offers if you use your card to pay your bills or even if you make purchases of a certain amount of money. The most common of such offers is the cash back facility. You get a certain percentage of your spending debited to your online account which you can use later to buy something or avail any other service.
• Reward points: Banks also provide reward points for every purchase that you do with your credit card. The card company earns a fee from the merchant outlet every time you use your credit card. They share a part of these earnings with you in the form of reward points to encourage you to use the card more frequently. You can redeem these reward points at any partner merchant outlet or website. Generally, people use the reward points to buy air tickets or convert them into air miles.
• A credit card enables you to avail the EMI option when you are making any big ticket purchase like television, laptop or a car. It allows you to make the purchase even if you do not have the entire amount required to buy the thing at that time.
• Grace period – One of the primary advantages of using a credit card is that banks offer a grace period of about 50-60 days before you need to start paying back. This helps you to plan your expenses accordingly.
• Credit cards are safer than debit cards.
There are credit card offers to meet the needs of everybody. From flier miles to discounts on purchase of automobiles to various perks when you shop, credit card companies are putting in all the efforts to keep their customers happy. The credit card offers often come with an expiry date. The most convenient way to redeem these offers is by making some purchase online as you do not have to contact the bank to help you out with this.
Some of the benefits of using credit cards are:
• Cash back: Banks provide credit card offers if you use your card to pay your bills or even if you make purchases of a certain amount of money. The most common of such offers is the cash back facility. You get a certain percentage of your spending debited to your online account which you can use later to buy something or avail any other service.
• Reward points: Banks also provide reward points for every purchase that you do with your credit card. The card company earns a fee from the merchant outlet every time you use your credit card. They share a part of these earnings with you in the form of reward points to encourage you to use the card more frequently. You can redeem these reward points at any partner merchant outlet or website. Generally, people use the reward points to buy air tickets or convert them into air miles.
• A credit card enables you to avail the EMI option when you are making any big ticket purchase like television, laptop or a car. It allows you to make the purchase even if you do not have the entire amount required to buy the thing at that time.
• Grace period – One of the primary advantages of using a credit card is that banks offer a grace period of about 50-60 days before you need to start paying back. This helps you to plan your expenses accordingly.
• Credit cards are safer than debit cards.
There are credit card offers to meet the needs of everybody. From flier miles to discounts on purchase of automobiles to various perks when you shop, credit card companies are putting in all the efforts to keep their customers happy. The credit card offers often come with an expiry date. The most convenient way to redeem these offers is by making some purchase online as you do not have to contact the bank to help you out with this.
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