Benefits of using a credit card

The world has experienced dramatic progressions. When it comes to economics and money, we have faced unprecedented developments. The concept of money has evolved over time and the world have come up with a facility named credit card.

Credit cards can be referred as plastic money offered generally by financial institutions like banks. These institutions offer money also called credit which has to be repaid within the specified period of time.

Personal finances expert often prevent people from using credit cards due to some reasons. Abusive usage of credit cards can result into excessive debts. This can be harmful to your personal finance. But this only happens when you use it with zero responsibility. A cautious use of credit card can pay you much more than expected, especially credit cards offering lower interest rates. Here are some of the major benefits that credit cards offer:

1. Speed

Credit cards are an ideal medium to purchase something that you cannot afford, however you have to be sensible about it. If you cannot afford to buy something in one go then credit card is the right deal. Credit cards will allow you to purchase the item in full and then repay it in installments. This can lower the financial burden on you. However make sure you do not miss the deadline to avoid interest.

2. Protection

Payments with credit card are much safer than paying with cash or debit card. It is easier to avoid losses from fraud. If something is bought within a certain limit, you will receive all your money back if something goes wrong. If the purchase proves to be faulty, you can claim the money back if the purchase is conducted through credit card.

3. Borrow for free

Credit cards offering 0% period will allow you to benefit from interest free loans. However you will have to make minimum monthly payments. If the credit card bill is paid in full each month, you can access to borrow for free feature. Now even if you do not have money at the money, borrowing will become easier and the most important part it is free.

4. Grace period

After making debit card purchases, your money will be gone instantly. When it comes to credit card, your money remains in the checking account until weeks later till you pay your credit card bill. This can prove to be helpful. Whenever you pay with your credit card, you do not have to watch your bank account balance all the time.

5. Universal acceptance

Credit cards are universally accepted. There are certain purchases which cannot be made by debit card. Whether you want to rent a car or stay somewhere else in a hotel, you will face no difficulties to pay with credit cards. Many companies want you to pay with credit card because it is easier to recover if any sort of damage is made.


Given the importance and advantages of credit in this current day and age, one must consider the possibility of possessi