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5 Benefits That A Credit Card Offers

Adhil Shetty

Credit cards are a handy spending as well short-term borrowing tool. Offered by banks and lending institutions, a Credit Card has many benefits that you may not be aware of. The benefits vary depending on the issuer and the type or the category of card you are using. In a diverse credit card market, there are a variety of cards ranging from free cards to premium cards, with plethora of benefits.

Let’s check out five benefits it offers.

Shopping Rewards

In this era of online shopping, many credit card come with attractive offers and discounts to lure customers. While availing these offers, decide your purchase that is within your budget and within a limit you can easily repay. You can also enjoy cashback offers while using a credit card for paying utility bills, fuel purchase, buying grocery, purchasing movie tickets etc. However, do not get tempted by the plethora of offers and assess your repaying capacity before spending.

 Airport Lounge Facility

Airport lounges are the saviours of weary travellers during flight delays and rescheduling. However, not everyone has access to all the lounges. Certain lounges restrict the access to members while others charge you for entry. You can get access to these lounges by having credit cards that offer complimentary lounge access. A limited number of free entries is allowed by the issuer every quarter on qualified credit cards. Before availing these offers, do understand the charges associated as a small amount may be charged to verify the card, which is usually reversed later to the customer’s account. You can check the availability of free lounge access on your card from your credit card company.

Helps In Building A Credit Score

This is one of the most important benefits of using your credit card. Being an unsecured debt instrument, if you use the credit card carefully and repay your dues on time, it can help you to build a healthy credit score. However, if you miss timely repayments of your dues, it can dent your Credit Score. Therefore, if you are looking to build your credit history, a credit card is one of the best options to start with, provided you use it carefully.

 Purchase Protection

A credit card makes your online shopping safer. If you use a credit card to do an online payment, you can invoke purchase protection clause in case of damage to the product or loss of the product. You may need to lodge an FIR and provide the copy with proof of goods purchased to claim the amount. Check the list of exclusions and terms and condition before you select a card based on purchase protection feature.

Price Protection Cover

You would have noticed many times that after shopping online, the price of the product is lowered by the seller. If you have bought the product using a credit card that allows price protection cover, you can report it to the card company within 7 days (or as prescribed by your credit card company) along with the printed advertisement of the same shopping portal to claim the price protection benefit and get the refund.

Apart from above mentioned benefits, credit card also allows the facility like concierge service, EMI facility for big ticket purchases, etc. Many credit cards also offer insurance benefits, so do check about the advantages before buying one for yourself.

The writer is CEO, BankBazaar.com.

BankBazaar.com is a leading online marketplace in India that helps consumers compare and apply for credit cardpersonal loanhome loancar loan, and insurance.