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How are Credit Cards Beneficial in Today’s Times?

The Indian middle-class segment can relate to times when most had to strive to save some of their monthly earnings to make a big-ticket purchase such as a refrigerator, washing machine, or even a TV set. However, as times have changed, most people don’t have to wait to buy expensive gadgets as affordability has risen along with easy access to credit facilities like credit cards. A credit card allows one to make purchases now while paying for it later as per individual convenience.

With a recent rise in online shopping, credit card usage has also seen a sharp rise in India. As per the latest reports, India has more than 62 million credit card users. This figure stood at 52 million just two years ago. These statistics tell us that millions of people are joining the credit card bandwagon for easy payments every year. With the Covid-19 pandemic making social distancing the new normal, people are starting to prefer online shopping and digital payment modes over traditional forms of shopping or cash usage. Considering this, there are definitely many benefits to be availed from credit card usage. 

Here are some of the reasons why a credit card makes for a smart choice in today’s times.

  • Can be used anywhere anytime

Credit cards come with a universal acceptance and can be used on various online platforms as well as for offline purchases. These offer some unique benefits including easy EMIs, reward points, indemnity cover, airport lounge access, insurance, etc. Irrespective of one’s location, today it is easy to make a transaction using a credit card. Additionally, as online shopping is on a rise, credit cards prove to be very useful since most online shopping portals accept credit cards and provide special discount deals to credit card users.

  • Savings through an interest-free period

Credit cards are attractive in today’s times since these offer an interest-free period of up to 50 days on various spending made through the card. If used effectively, a credit card user can fetch interest savings on the amount spent and the interest earned on the unpaid amount that lies in one’s savings account. 

  • Discounts, cashback and offers

Credit card users can avail various cashback offers, discounts, and also reward points for most payments made through the card. For instance, regular online shoppers can opt for a credit card that offers different cashbacks on purchases made on popular e-commerce platforms like Amazon, Flipkart, Big Basket, etc. One can also go for a card that offers reward points on dining at select restaurants or upon ordering food deliveries. Many credit cards also offer discounts on fuel expenses, hotel bookings, etc. 

  • Helps to build a credit history 

Credit cards provide an opportunity for users to build their credit history and a good credit score over time. During loan or credit card applications, banks and lenders often check the applicant’s credit score. A good credit score is an indicator for lenders that the applicant has good creditworthiness. Thus, lenders can determine the surety of loan repayment by looking at one’s credit score. For instance, an applicant with a credit score of 750 or above has higher chances of getting a loan approved as compared to one who has no or poor credit score. With the help of a credit card and by ensuring timely payments of credit card dues, one can build and strengthen credit score over time. 

  • Hassle-free spending

With a credit card, one can enjoy the flexibility of travelling without cash and still having the ability to make purchases or payments. Even during a medical emergency, a credit card can help one meet any urgent requirement of funds for settling various bills through the credit card. With regards to safety, a credit card is among the most secure payment modes that include two-factor authentication in each transaction, especially during high-value transactions. In case of financial fraud, a credit card user’s savings in a bank account remains unaffected, thereby offering maximum safety to users.


Many people carry the false belief that credit cards are unsafe and therefore they prefer to stay away from using credit cards. Getting into a debt trap by overusing credit cards is common. However, when these are used responsibly, it can increase the convenience factor and also offer a range of other benefits as discussed above.

With the multiple impressive benefits of a credit card, it makes sense to apply for one in today’s times. By applying for credit cards, one can start enjoying the various rewards and benefits that come with these.





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