Finance Blog

What Are The Advantages Of Owning A Personal Credit Card?

Having a credit card can be incredibly useful in today’s time. Owning a credit card builds your credit score if you use the credit available to you responsibly. Credit cards are a very affordable, and convenient mode of payment when you need to utilize them. It is a convenient way of buying now and paying later.

Following are a few advantages of owning your credit card that you may want to consider if you are sceptical about the same:

  1. Convenient: Using a credit card to make purchases makes it easier to make purchases without worrying about your bank balance. You can buy now pay later when you receive the monthly bill. A credit card even allows you to make purchases when you are travelling. Instead of searching for an ATM, you can conveniently use your credit card every day to pay for your hotel or book your travelling tickets.

  1. Boosts your credit score: A credit score is a score that you can calculate. This score determines your loan paying ability and depends on various factors. It qualifies you for a loan on any personal loan app, and this credit score greatly influences your interest rate. Owning a credit card is advantageous for your credit score. As long as you pay your credit bills on time, your credit score will increase. This credit score will also help you attain a new card in the future at a lower rate of interest.

  1. No need to link your bank account: Unlike a debit card, credit cards permit you to make purchases even if you do not have a bank account. A debit card gets a link to your bank account, and every time you make a purchase, it deducts from your bank account. Debit cards do not link to your bank account. Therefore, every time you make a purchase, you do not have to worry about your bank balance reducing. However, you will receive a credit card bill at the end of every month.

  1. Improved purchasing power: A debit card is only limited to the balance in your account. On the other hand, a credit card does not depend on the same. Therefore, you can make as many purchases according to your credit card limit. Although it recommends that you do not exceed the limit, you can still make purchases beyond that if you need to.

  1. Additional benefits: On using a credit card, you get reward points as well as cashback on your purchases. On returning a purchase, you do not have to worry about the amount returning to your bank account since it never gets deducted from there in the first place. In addition, there is no fear of your bank details being misused with a credit card as they are not connected at all. Do many credit card companies offer benefits on travel purchases that you can take advantage of?

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