The increasing usage of financing facilities in India is characterized by the rising number of credit instruments such as credit cards that stood at 52 million in 2019. Also, premium credit cards grew by 43% while their usage by women grew to 33% in the same year.

The diverse range of advantages of credit cards can be suitably sighted as a reason for their growing use. Here’s a look at some of the common benefits that users can get when using a credit card.

1. Means to regular expenditure

Credit cards provide funds readily for regular, day-to-day purchases that individuals make. The available credit limit increases a user’s spending capacity.

2. Emergency funding through personal loans

Cardholders can also fulfill their funding needs during a financial exigency by availing personal loans against the unutilized credit limit.

3. Helps in credit score improvement

Credit cards are typical credit instruments that can assist in credit score improvement of the user over time. One thus needs to practice prudent utilization of the card and make timely bill payments towards this objective.

4. Perks and reward programs

Credit card issuers also bring various perks and reward programs for customer benefit. Users can thus take advantage of reward points, cashbacks, and discounts as per their spending habits. These benefits can extend to travel bookings, fuel purchase, online shopping and many more.

5. Benefits from the interest-free duration

The benefits of an interest-free period can be utilized on credit cards by timing regular purchases towards the beginning of the billing cycle. It provides a window of up to 50 days before bill payment.

The facility of an interest-free period is also applicable for cash withdrawals through ATMs on some cards like the Bajaj Finserv RBL Bank SuperCard.

Before availing a credit card, one must compare different issuers and look for additional benefits to make the maximum of these advantages.