Credit cards will be useful if you need money in an emergency cashback and EMI will also be available if you shop online.
Using a credit card improves credit score
Credit cardholders can easily get a pre-approved loan
Nowadays people are facing financial problems due to Corona virus. A credit card can meet your need if you need money in an emergency. In addition, there are other benefits to using a credit card. This not only improves the credit score but also offers premium offers for online shopping.
Helpful in an emergency
Credit cards are very helpful if you suddenly need money. A credit card is the easiest way to get money compared to not having much money in a bank account or the time it takes to process a loan. However, you may also have to pay an over-limit fee on a credit card if you have overcharged. But it's not too much. That is, a credit card can get your work done in an emergency. In addition, credit cardholders can easily get a pre-approved loan in an emergency.
Get cashback on online shopping
You also get a variety of amazing offers, including attractive cashback when paying with a credit card. You can also get up to 10% cashback on purchases from many online shopping websites. Therefore, shopping with a credit card can be even more rewarding.
EMI facility is available
Often when we want to buy a laptop or smartphone it is out of our budget. In such a situation you can easily buy these goods on EMI with the help of credit card. Instead of spending a large amount, you have to pay a small installment through EMI. However, you have to pay interest on this facility. Which is usually very low.
The bank remains liable when the card is stolen or lost
When a credit card is stolen or lost and a report is filed with the bank, you are not responsible for any card transactions. Zero liability can be availed after filing the report.
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Pre-approved loans are available in emergencies
Credit cardholders can easily get a pre-approved loan in an emergency. However, for that you need to have a good record. Pre-approved loans do not have any documentation. Which makes it process faster. Sometimes a loan can be obtained within a few hours.
The chances of fraud remain low
If you are a victim of fraud when making online payments with a debit card, all the money deposited in your bank account can go. It may take a long time to bring it back. Credit cards have time to correct this error. In addition, the credit card will carry as much money as your credit card limit.
Improves credit card score
You can build a good credit score if you spend money with a credit card and pay it on time. A credit score helps you get a loan easily and at low interest rates.
Start with a basic or no-frills card
If you are using a credit card for the first time, start with a basic, no-fee card. This is called a no frills card. This is a low cost limit card. Don't aim to get a limited premium or super premium card initially. For this your income level should be high and its fees are also high. Build a good credit history with your first card. Then qualify to get a premium card.
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