For those who are accustomed to swiping their credit cards at every turn, the thought of living without “plastic money” can be quite daunting even scary. Others are of the opinion that possessing a credit card can bring one a lot of temptation and result in poor expense choices. However, there are certain things which you cannot do without a credit card. If you are planning a vacation and have decided to make a hotel reservation before getting there, in all likelihood you will need a credit card to get the bookings done. Further, if you make a big-ticket purchase online and plan to convert it to EMIs, you will be required to pay through a credit card.Can you imagine coming across a beautiful dress on Jabong.com and not being able to buy it simply because you do not have a credit card and cannot afford to pay the full price at one go?
Benefits associated with credit cards
Most business travelers cannot imagine air travel without credit cards. When you are a frequent flyer, you can stock up amazing benefits on your credit card just by using it for purchasing air tickets. Some credit cards are solely focused on travel and offer add-ons such as free air miles and lounge access. Additionally, credit cards are often used for purchase of fuel. A number of credit card issuers have tie-ups with oil companies thereby paving the way for awesome discounts. Several benefits are offered to the customers. Using credit cards for fuel purchase helps save on the fuel bill. Office goers who spend heavily on fuel and commute long distances everyday are specially benefited when using a credit card.
Using credit cards to pay bills
Cash has traditionally been the preferred mode of payment for the average Indian. However, if you pay using cash, there is no possibility of getting any money back in the long term. Using a credit card gives you access to rewards programs and even cash back, where you can get a portion of your expenses back. If credit cards ceased to exist, no such rewards would come your way.
The free credit period
Free credit period is one of the best features of a credit card. If you are financially savvy, a credit card will give you up to 50 days to pay off an expense that you make today. This feature allows you to shop without worrying about the money in your account in the short term. The only thing which you have to be particular about is to ensure that you clear off all your dues on or before the due date.You no longer have to worry about carrying around a wad of cash to immediately pay for purchases.
Helping Hand in emergencies
Credit cards can prove very handy in cases of an emergency. Whether you have a broken-down car or a busted water heater, a credit card can help you take care of such a hefty expense with ease. Without a credit card, you could face the trouble of coming up with cash immediately. If a family member falls ill suddenly, you may have to pay unexpected medical bills.In cases of such emergencies, when most of us do not have immediately available cash in hand, a credit card can act as a great buffer.
Conclusion
A credit card has become indispensable today. When you pay your bills and use a credit card for other expenses, it improves your credit score as long as you pay your bills on time. At the same time, you get rewarded for such expenditures. Additionally, using a credit card, you can easily keep track of your expenses so that you can achieve greater savings in the long term..In fact a world without credit cards is almost unthinkable when you consider the fact that they have crossed the line from being a luxury to emerge as one of life’s financial necessities?