Advantages of having a credit card

You do not have to carry large amount of cash for making major purchases typically, consumer durables that costs many thousands of rupees.

You are fear-free of getting caught in a situation where you do not know what would be the expected expenditure. You can always use the “Convenience Card” i.e the Credit Card.

Most Importantly, if you possess a Credit Card, it is like the “Petrol Tank Reserve”. How?. It is simple. There are times when you find you are suddenly cashless or short of cash. This is where the Credit Card comes to ones rescue.

There are many who have made it a habit of making most of their day-to-day purchases only through credit cards. The reason being, it gives them a better understanding of their spending pattern. These are the types who maintain strict financial discipline. The reason is, they make all the payments as soon as they receive the monthly statement.

Most of the Credit Cards come with a 45 days to 50 Days credit period for any purchases made by using it. This is a major incentive for a large section of people. They wisely use the Credit Period, by deploying their liquidity on very short term savings, thereby earning a couple of hundreds in the bargain. That is having your egg & eating it too. Isnt this a great benefit?. Provided you are a person with strict financial discipline.

Where all it could be used

About two decades ago in the 80’s, there was just one company issuing the card. It was called Diners. But this was offered only to the affluent section, and hence it was more of a status symbol than a Convenience. With the markets having opened up, with the economy liberalized the middle class population grew by leaps and bounds. That is when bankers started looking at Credit Card as a Product or Service.

Credit Cards can be virtually used for anything. Whether you are making purchases in a super market, a medical shop, a cinema theatre or just filling petrol in your vehicle. It can be used even for paying hospital bills. There are cases where people have purchased their Car with Credit Card. So, the list of places where you can use the Credit Card is literally endless.

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