Benefits of a credit card – 10 reasons why to use a credit card

Posted on Wednesday, January 31st, 2024 | By IndusInd Bank

What is a credit card for you? Is it your go-to option for all payments, online and offline? A way to earn exciting rewards and travel benefits? The epitome of financial flexibility? For some individuals, a credit card plays an essential role in managing their day-to-day expenses, while for some, it is of great help when unplanned expenses crop up. While the way people use this financial tool may differ, the importance of credit cards remains unchanged. 

Having said that, let’s look into the non-negotiable benefits of using credit cards and understand how this tool is a necessity in modern life

So, what are the advantages of a credit card in day-to-day spending?

From financial flexibility and security to convenience, credit card uses and benefits are many. Let’s explore them in detail:

1. Widely accepted: Credit cards are accepted almost everywhere, both domestically and internationally. This universal acceptance is convenient for online shopping, dining out, and even travel. No more worry about currency exchange or searching for ATMs. Just swipe or use your credit card online and that’s it.
2. Build your credit history: Each time you use your card and pay the bill on time, it improves your credit score. A good credit score is paramount for future financial needs. For example, if you apply for a personal loan, lenders look at your credit history to decide your loan eligibility and interest rates. Regular use of your credit card and punctual repayment can help you avail loans with better terms.  
3. Access to travel benefits: For travellers, IndusInd Bank credit cards come packed with countless useful benefits. These include travel insurance, airport lounge access, concierge services, reward points, and discounts on hotels and flights. These perks make your journeys more enjoyable and budget friendly.
4. EMI options: Instead of paying a large amount at once for, say, a new mobile phone or AC, you can pay in small monthly instalments with your credit card. This way, you can buy what you need without instantly affecting your savings. 
5. Discounts and cashback: Credit cards offer various rewards for every rupee spent. These come in forms like cashback, points, etc. Rewards earned on each transaction can be redeemed for gifts, vouchers, or even air tickets.  
6. Use during emergencies: In situations where savings are not enough, a credit card is a lifesaver. Be it a medical emergency, urgent home renovation, or non-negotiable vehicle repair, your credit card gives immediate financial support. This way, you make sure that life’s unpredictable moments don’t turn into financial crises.
7. Interest-free period: One of the most significant benefits of having a credit card is its interest-free (grace) period. This is the time between making a purchase and the due date of your bill. If you pay the full amount before this date, you logically borrow money for free. 
8. Bill payments: Credit card uses in daily life are plentiful. You can use your card to pay for groceries, utility bills, rent, and even gas. This consolidates your expenses into one statement and makes it easier to track. The best part? You keep earning rewards and exclusive cashback with every transaction.
9. Purchase protection: One of the biggest advantages of using a credit card is purchase protection. IndusInd Bank offers this benefit, which covers you against fraud, like unauthorised transactions if your card is lost or stolen. Just report the issue on time and enjoy an easy claim process at no extra cost.
10. Insurance: Some credit cards may come with insurance coverage. Some of these include:

• Personal accident insurance
• Lost baggage insurance
• Air accident insurance
• Purchase protection insurance
• Loss of passport insurance
• Missed flight connection
• Lost card liability cover, etc

Credit card: More than just a spending tool

Now if someone asks you what are the benefits of a credit card or its importance, you surely have ten reasons to share. So, they are not just pieces of plastic, they are tools that help you with your daily finances. To explore the above-mentioned advantages, you can consider IndusInd Bank credit cards. Enjoy 100% digital process and extra value-added perks like lifetime-free credit cards, impeccable rewards, offers on brands, and fuel surcharge waivers.

Apply online today and enjoy unbeatable IndusInd Bank credit card benefits!

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.