What is Credit Card and its Benefits

What is Credit Card

A credit card is a type of card, that is used when we are purchasing something. When we go shopping we can use credit cards, these are different from debit cards. Credit cards have limited, in which we can pay from it, beyond the limit we can’t pay from it. Like our credit card limit is only 50,000 but we spent 1,00,000, then the credit card does not help us.

Credit cards are offered by banks, for this we have to fill a form for a credit card, and they will generate our credit cards. There are a lot of benefits of using a credit card, these are described as follows:

Benefits of using Credit Cards:

  1. Helpful at the time of Emergency:

Suppose you are shopping for something, and when you are paying the bill you discovered that you have not enough money to pay the bill, then in these types of situations, credit cards help us. We can use it and easily pay from it.

2. Convenient:

Credit cards are convenient, which means it is accepted most of the sellers and retailers. It is a part of net banking. Credit cards are now used by many peoples, and their use is increasing day by day.

3. Safety:

There is safety using credit cards. Your information is safe, and if you lost your credit card, then it can be found. No other person can use your credit card, as there is a security password for using it.

4. Protection from Fraud:

Credit card keep your money safe and secure, no one can use it as a fraud. Many securities are verified while using a credit card. The payment is totally free from fraud.

5. No need to take paper cash in hand:

There is no need to take a lot of cash with you while going shopping, is these types of situations there are more chances of theft. Without cash in hand, we can easily make payments.

Read – What is Debit Card and Its Advantages

6. Interes- Free:

A rate of interest is charged on credit cards. But sometimes, the banks give offers like no interest on credit cards. You can take advantage of these schemes in the banking sector.

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