When you step into your favourite coffee shop, the smell of freshly made coffee surrounds you. You ask for a creamy latte and a pastry. You pay swiftly with your credit card, so there is no need to carry cash or check your balance beforehand. It’s a seamless experience that lets you enjoy your treat without a second thought.
However, the value of your credit card extends beyond paying bills. It comes with perks and advantages that can change the narrative of your financial journey. Your daily expenses can unlock the following 7 credit card benefits, from earning cashback on every purchase to exclusive rewards.
Applying for a credit card can improve your credit score in several ways. First, it adds to your credit mix, showing lenders you can handle credit responsibly. Utilising the card wisely through timely payments indicates responsible credit behaviour, significantly influencing your payment history—a key factor in your credit score.
Additionally, keeping your credit card balance low relative to your credit limit helps improve your credit utilisation ratio, another important aspect of your score. Over time, these responsible credit habits help build and strengthen your credit profile, leading to a higher credit score.
Credit cards can offer several valuable insurance coverage alternatives depending on the type of credit card and card issuers in India. These include personal accident coverage, which provides financial protection in case of accidents, and travel insurance coverage, which safeguards against trip cancellations, delays, and medical emergencies while travelling.
Credit cards usually come with purchase protection, which covers card purchases against damages, misplacement, or theft, and extended warranties, which extend the warranty period on items purchased using the credit card.
The benefits of using credit card options include ‘buy now, pay later’ and ‘buy now, earn rewards’ as well. Every time you use your credit card for any purpose, you earn points that can be accumulated and redeemed for impressive rewards like discounts, cashback, vouchers, gift cards, and more.
For instance, the points you earn today help you offset future expenses like buying a new gadget or help you save on household items. This loyalty reward system ensures that the more you use your credit card, the more you gain. However, don’t fall into the trap of overspending just to earn reward points.
One of the benefits of having a credit card is its widespread acceptance as a payment option by merchants, including retail stores, restaurants, hotels, and e-commerce platforms. This broad acceptance allows you to easily make purchases, whether shopping online, dining at a restaurant, or booking travel online.
Credit cards are offline and online payment methods that integrate with mobile wallets and payment apps. They offer the convenience of going cash-free and support the shift towards a digital, cashless economy.
Credit card issuers in India often partner with popular retailers and other platforms to provide cardholders with special deals that aren’t available to non-cardholders. These deals could include a significant discount on products or services during a festive sale, cashback, bonus reward points, or more to help you save over time.
In addition, you can get early access to sales, complimentary airport lounge access, or any other priority pass membership services. Some cards even come with lifestyle benefits like shopping, dining discounts, complimentary movie tickets, or special rates on hotel and travel bookings. To ensure you get all these benefits, apply for a credit card from leading financial institutions at Quid.
As a credit card user, most banks have an expense tracker that lists all transactions made during the billing cycle across categories. This comprehensive record-keeping helps you monitor your spending habits and gain insights into your financial behaviour.
You can proactively manage your finances to set and achieve financial goals, such as saving for a hefty purchase or paying off debt. One of the significant advantages of using a credit card is the ability to buy today and pay later to avoid unnecessary cash expenses.
One of the lesser-known yet highly valuable benefits of credit cards in India is the ability to secure a loan on your credit card. This allows you to access money quickly without needing a lengthy application process or additional documentation. Generally, the loan amount depends on your card’s unused credit limit, making it an easy and convenient option.
Moreover, availing a loan on your credit card is seamless, as many banks offer pre-approved loan amounts that they can disburse instantly. The best part is that the loan is unsecured, meaning you do not have to keep any of your assets as collateral.
Regardless of which credit card offers the above advantages, you need to use it responsibly by making timely payments, monitoring your expenses, and avoiding overspending. By doing so, you can avoid falling into debt and improve your credit score.
To enjoy credit card benefits, you can apply for one from RBI-approved banks on Quid. We streamline the process to assist you in finding the best card for your needs.
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