Why do we need credit cards?
Credit card. Sounds fishy, I don’t need it. Don’t get it. These are the common answers we get when we ask someone about the credit card. Actually, we all need a credit card, especially the middle class. The process for getting a credit card is not simple. If you need a credit card like tool immediately for making an online domestic payment then read my previous post on How to get a credit card on the same day. (This is applicable only in India)
Do I need a credit card?
You just question yourself first. Why do we need credit cards or do I need a credit card immediately? Actually, it depends on your lifestyle. There are a lot of positive things to be noted while deciding whether to buy credit card or not.
Advantages of credit cards are:
- Spend now and pay later
- Sufficient breathing time of 20-50 days (Most credit card company allow) to repay the amount spent
- Make huge purchases and split it as EMI
- Cash back/ Reward points.
- Special offers on online shopping sites especially for your credit card.
According to me, there is no such thing called as negative with respect to credit card unless you forget to pay your bill on time or if you have a bad memory just forget it.
Spend now and pay later:
The main advantages of credit cards is spent now and pay later. Shortage of funds to checkout at shopping? Sometimes your best friend can’t help you, but the credit card will. The Credit card helps the middle class and the upper middle-class people to live with dignity. It helps us to hide our inability to buy something at a hard time. Even you can withdraw cash at atm.
Sufficient breathing time:
No one in this world, other than your family would render monetary support to you without expecting any interest for lending. But credit card gives the freedom of getting an instant loan and also gives us sufficient breathing time to repay the amount we spent. If we repay on time then there is no interest hence we get soft loans from the credit card.
Make huge purchases and split it as EMI:
There may be a situation you need a laptop urgently. People working in corporate companies require a laptop of decent configuration which could cost them anywhere between INR 40-50K. It is really a tough situation for an average person to afford in a single month. If he has a credit card then he can buy it and convert it into EMI by calling the customer card of credit card provider. Now think, do I need a credit card? Maybe..yes. Right?
Cash back or reward points:
I’m using a credit card from SBI which provides reward points. Most credit card providers offer reward points and the value of 1 reward point is INR 0.25. In general, if we spent INR 100 we gain 1 Reward point. So think, If you spent 20K per month then you get an opportunity to save INR 50. Who is going to give that 50 Rupees for spending. Credit card will. Some card issuers will allow users to pay their credit card bill using the point earned. My credit card gives 10 reward points for each INR 100 spent on certain categories thereby I could save 2.5% of my entire spendings.
Special Offers on online shopping sites:
Each credit card issuer is keen to have tied up with many online retailers to promote the usage of the credit card on their website. As a part of their promotion, they offer discount code which we can use it during checkout to get extra savings. Most of the offers are still for credit cards so it’s better to get a credit card immediately.
I just shared my experience of using the credit card. In a nutshell, if a credit card gives attractive benefits, then its application or registration fee will be higher. Some cheap credit cards may not render good benefits like reward points. So think carefully, read the complete features before applying for credit card. I hope you enjoyed reading it. Have any questions? or do you have better reasons to let the world know “Why do we need credit cards” then please comment below.