6 benefits of using a Credit Card

5 MinsMay 17, 2023

The number of people using credit cards in India has increased of late. But how many of you know to use the card to its optimal benefit? A credit card is a beneficial financial tool that lets you buy now and pay later. 

6 benefits of using a Credit Card

It can boost your financial standing immensely if used responsibly. Here are some credit card benefits that make it a must-have.

You should use a credit card because you get:

  • Funds instantly to pay for your needs
  • Option to repay in easy EMIs
  • Reward points and other benefits such as deals and discounts
  • Chance to build your credit score by repaying on time
  • An interest-free period to repay your dues
  • An easy way to keep track of your expenses

1. Easy access to funds 

Everyone knows that a credit card allows you to buy products and services and pay for them later. But do you know it can help you get funds during an emergency? 

You can instantly get a loan against your card's credit limit and also allows withdrawal from ATMs in case of an urgent requirement. A good credit score is crucial to get your loan approved. Always ensure to pay your credit card bills on time and avoid interest charges on late payments.

2. Credit Card rewards 

You earn rewards on every purchase you make as credit cards offer additional bonuses, such as discounts, points, cashback and miles, depending on their type. Further, you can select a credit card according to your needs and get a welcome perk on activation.

Axis Bank offers a variety of credit cards that can be customised per your needs. For instance, IndianOil Axis Bank Credit Card is perfect for road trip lovers as it offers a 4% value-back benefit on every fuel transaction at Indian Oil fuel outlets. Similarly, Axis Bank Privilege Credit Card is for travelling and shopping enthusiasts as it offers a range of travel and shopping benefits.

3. EMI facilities 

A credit card allows you to make big purchases by offering an EMI facility. It lets you convert your bill amount into manageable monthly installments or EMIs and help you pay large amounts over a period of time. Axis Bank Credit Card allows you to avail balance on an EMI facility at a reduced interest rate. You can select the amount to pay every month as per your capacity.

[Also Read: Started a new job? Get an Axis Bank credit card!]

4. Helps you improve your credit score 

Paying your credit card bills on time helps you build a good credit score. Credit rating agencies monitor all your payments and purchases to give you a credit score based on your credit history.

Lenders evaluate credit scores to assess the repayment capacity of a borrower. A good credit score lets you negotiate terms and interest rates while applying for a loan.

5. Interest-free period 

An interest-free period is a time between the transaction and the payment due date. During this period, no interest is charged on the credit card transaction. If you pay your credit card bill within this time, there will be no additional charges. Axis Bank provides an interest-free grace period ranging from 20 to 50 days, depending on the transaction date.

6. Records your expenses

A credit card is a great tool to record and monitor all your expenses as it documents all the transactions made. Keeping a watch on your regular and unexpected expenses helps you plan your finances and budget more effectively.

After understanding the various credit card advantages, you can select and customise any Axis Bank credit card that best suits your needs. Axis Bank offers Edge Reward Points on all its credit cards that can be utilised to get discounts or be redeemed later. 

Always plan your payments within this period to maintain a good credit score and avoid interest charges on payments.

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.