A disciplined swiping of a credit card can help you earn several benefits which may not be possible while transacting through a debit card. You can use a card for almost everything – from groceries to paying for traveling expenses. Plus, you need not worry about keeping too much cash when you carry a credit card. However, if a credit card is not used judiciously, it can land you in a severe debt trap. We have listed 5 reasons which prove credit cards are good.

5 reasons which prove credit cards are good

Credit score:

Disciplined usage of credit cards which includes keeping your credit card spends within 35% of your overall credit limit and paying your bills on time and in full, helps you build your credit score. A high credit score makes you eligible for future loans that you may need to fulfill life goals such as buying a house or to meet any financial emergency. Banks prefer a credit score of 700 and above to lend you credit.

Reward points:

Credit cards come with a lot of attractive offers and reward points. However, to make the best use of a card, you should choose a card whose reward point or benefits are in accordance with your lifestyle and spending pattern. Please note that some reward points come with an expiration date. Therefore, you should make the best use of it before it gets expired.

Interest-free period:

A credit card gives you 50 days credit period. You can purchase products using the credit card throughout the month. You are not required to pay the amount immediately or the next day. After that, the bill is generated and you get another 20 days to repay the credit card bill to the interest-free bank. If you are purchasing big-ticket items such as an air conditioner, a television, etc., you can save by paying through credit card.

Travel perks:

Many credit cards offer you complimentary access to airport lounges, domestic as well as internationally. Some cards provide unlimited access to lounges worldwide. Apart from access to lounges, you may also get several other benefits, deals and discounts that would slash your travel costs if you plan things right. Some credit card issuers may waive off the base fare on domestic ticket prices. You may even get priority check-in and extra baggage allowance with some airlines.

EMI option:

You can make big-ticket purchases on EMIs using a credit card to ensure your finances are not stretched beyond control. Nowadays, credit cards are being used by many to finance their vacation abroad on EMIs. Also, most banks work with various merchants to offer the option of no cost EMI, which means that consumers need not pay any interest for a certain period.

Apart from the reasons mentioned above, a credit card can also help you get discounts on hotel bookings or a free movie ticket as well. Many cards now provide access to golf courses as well, along with lessons. Not just that, premium credit cards help you earn gift vouchers to shop for luxury brands. However, make sure to use your credit card wisely so that you do not end up in any financial trouble.