Reasons Credit Cards Are Must For Financial Wellbeing

Until recent times owing a credit card was not a favored option for the citizens of India due to the myth about impulse purchase and security issues of the credit card usage but, the effects of demonetization projected a bigger picture about credit cards and why they are must for the financial well being of the person. The current article is to throw a lime light important benefits of the credit card that contributes to your financial well being.

Safety

Transactions using the credit card are safer when compared to a debit card. Though banks offer the transactions conducted through both debit and credit cards, in the instances of a fraudulent transaction, you will be losing the money from your account instantly and it takes time for the banks to refund the same. Any checks issued during the meantime will find no balance in the account, thus impacts your credit score. On the contrary, fraudulent transaction through credit card will not take any money from your account, the attempt can be stopped immediately by blocking the card. The banks even offer insurance plans to protect you against fraudulent transactions.

The emergency line of credit

When you have a credit card handy, it will keep you away from the hassle of maintaining money in your account all the while. Whether it is hospitalization or any other emergency monetary assistance, credit cards come in handy when unexpected costs arise in the life.

Make instant purchases

When you want to buy expensive products and do n’t have money in the account, credit cards play an effective role in speeding up the transaction. If the price of the product is within your credit limits, you can instantly make the purchase. If you have 0% purchase credit card, the cost of the item can be spread to a number of months and clear the payments easily.

Debt consolidation

Though we make credit card purchases with the good intentions, there are times when you will not be able to pay the credit card bills on time. The balance transfer option in the credit card works great at this juncture. You can move the debt from one credit card to other to get that extra grace period that allows you to arrange money. This balance transfer could be an option if you want to move the debt from high-interest credit card to low-interest card. This act will save you a good deal of money as well.

Track your spending

Most of the Indians stay away from the credit cards due to built-in myths of impulsive purchase, but using the credit card for your purchases will help you have an eye on your spending by keeping a track of it. You can easily track the information about when, where for what the credit card is used for. The spending records are maintained by banks for years. This crucial information will be quite helpful to you while filing tax assessment.

Universal acceptance

If you are a travel freak, a credit card is a must have financial tool for you. The card can be effectively used for addressing a wide number of needs in different countries like renting a car, book a hotel room and much more. These cards have wider acceptance compared to debit cards. Low exchange rate credit cards will help you manage your expenses effectively on a foreign trip.