The festive season is at its peak all across the country. Lenders are also optimistic about the pickup in business, and to attract customers, many leading banks offer all sorts of discounts on credit cards, like HDFC Credit Card. In 2013, there were 19.5 million credit card users in India, which will increase to 62 million by 2021. 

A credit card is a thin plastic or metal card issued by a financial institution that enables users to make a cashless transaction for purchasing goods and services by borrowing funds. This fund can be paid back as an EMI. 

Although the credit card business is dominated by giants like HDFC credit card or ICICI bank credit card, there still are many other fintech companies that are providing its customer with credit card app facilities. You can also avail discount on a broad category from shopping to travel. Furthermore, credit card has enumerable benefit in day-to-day life, which is listed below.

Why do You need a credit card?     

Having a credit card can be quite handy when you need urgent cash and do not want to apply for a loan. It can prove a handy tool when used properly and paid timely. With its help in managing car rentals or hotel booking, rent has become far easier. Here are some other benefits of using credit cards:

  1. Save some money with Discounts on purchases: There is stiff competition between lenders to attract customers to their side; they allure them by providing hordes of discounts on some of their favourite purchasing habits like dining, booking tickets, etc. Likewise, on this Diwali, HDFC credit card and SBI credit cards offer various offers for customers on shopping both on e-commerce sites and shopping malls.
  1. Credit Card comes with insurance: Proving an additional benefit, credit card empowers their customers in their difficult time of accident, suffering from health issue, and protection from fire and burglary on an item of purchase.
  2. Make Your Life easy: You do not need to worry about having enough cash in your pocket; if you want to purchase something, you can just swipe your card and pay for it later. It generates instant credit in your urgent need for money.
  3. Travels in comfort: Credit cards play a significant role in providing comfort during your travelling; look at the HDFC credit card, which offers facilities like access to some exclusive lounge, service where a customer gets priority in checking and security counter, and perks like extra baggage allowance.
  4. Credit score: By using your credit card effectively, you can improve your credit score, which is much needed before applying for any type of loan. To maintain your credit rating above average, you must pay all your due on time. If you need help tracking your CIBIL score, you can take the help of any credit card app.
  5. Safe to use: Carrying a ward of cash can be quite risky in today’s time; go cashless with a credit card, and you need not have to worry again about having your pocket pick and forgetting your money at home.
  6. Card means convenience: Forget about keeping large amounts of money for your shopping; you can easily take only one credit card for all your shopping and payment of bills because credit cards are accepted universally by all merchants.
  7. Track your Expenses: With a credit card, you can print your monthly statement and keep a record of all changes that occur in your expenses.

Conclusion

Today, a large number of fintech companies are providing customers with their credit card app facilities through which they can manage their cards, where customers get the added benefit of tracking their CIBI score and assessing their financial situation by tracking their payment history by date. 

Although we have discussed all the benefits of having a credit card, let’s not forget credit card comes with responsibility. If you are not able to pay your debt with its interest, then it is going to affect your credit score negatively. In addition, credit cards come with associated fees like annual fees, late payment fees, and cash withdrawal charges; for example, HDFC bank charges 2.5 % of all cash withdrawals on HDFC credit cards. So, before applying for one, you must thoroughly understand its requirement and term and conditions.

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