Credit cards are slowly but surely becoming a popular choice in our country for making purchases. Some people are even holding multiple credit cards, while some may even suggest you to stick to debit cards or cash so that you avoid debt. If used carefully, credit card can give you a lot of benefits.
There are multiple benefits of a credit card which you cannot ignore. And with multiple banks offering it, the process of getting one has become simple. There is a vast variety of options to suit every lifestyle and spending tendency.
But before you buy a credit card you must consider the below points:
Do you meet the basic requirements?
In order to get a credit card, you must be above 18 years of age. Apart from that, your income will also decide whether you are eligible for a particular type of card. The minimum income requirement will differ from bank to bank.
Make sure you’re prepared for the responsibility
You must be ready to take the responsibilities that comes with a credit card. It is essential to strike a balance with the minimum account balance and to make payments on time. It is your responsibility to pay your bill and on time to avoid interest charges.
Also Read: Top Credit cards for Online Shopping
Why you must buy a credit card?
Helps in building your credit score
In order to gain access to loans, you need to have a good credit score. If you have not taken any loan before then through the credit card, you can build up your credit score.
A simple way of building your credit score through a credit card is by using it for payment of monthly utility bills for electricity, gas, water, etc. and paying back the amount to the card issuer in full by the end of the month. This way, you can build your credit score, which will help you in getting loans at a lower interest rate.
No need for carrying cash
It is safer and convenient than carrying cash in your wallet while travelling and shopping. A credit card is one of the simplest and safest ways to pay for anything without worrying about change. Just swipe or scan it, the payment is made.
Also Read: Perfect Reasons to Use Your Credit Cards For
Earn cashback and travel rewards
Perhaps the best benefit of having a credit card is the ability to earn rewards while using it. The cardholder can earn cashback or reward points that can be used for everything from shopping to free air miles.
Keeps track your expenses
Credit Card statements are a great way to track your expenses every month since it provides you with a detailed account of your expenditure.