When you think of the many credit card uses available today, you may primarily recall that it can be used to buy things now and pay for them later. But while this may be the main use of a credit card, it is far from the only benefit it offers. Today, credit cards have evolved beyond mere payment solutions. They offer various perks and benefits for card holders.
And you need to know how to use your credit card well, to truly make the most of it. So today, we’re going to take a deep dive into the different credit card uses that you should be aware of to maximise the benefits.
This is perhaps one of the most common uses of a credit card. You can use it to pay any of your bills online or offline. This facility allows you to make purchases now, and defer the payment to a later date. During the interest-free credit period, you will not incur any additional finance charges on the amount spent. This interest-free credit period can range from around 20 days to even 55 days, depending on the terms and conditions of your credit card.
However, the amount remains interest-free only if you have no outstanding dues and if you don’t use your credit card to withdraw cash. Remember to pay the dues for your credit card bill payment by the due date to avoid incurring interest charges, which can be quite exorbitant. In fact, interest rates on credit card dues can go up to as much as 42% per annum!
If you are a frequent shopper, credit cards have many benefits and perks that you can take advantage of. Some of the common features that you can benefit from include cashbacks, discounts, bonus reward points and even no-cost EMIs. Here’s a closer look at how these benefits work.
Here, a portion of the amount spent is returned to the spender as a cashback. Usually, it is a percentage of the amount spent on select, eligible purchases. If you shop frequently using your credit card, this is a feature that you can take advantage of.
Most shopping credit cards offer discounts on various lifestyle products or services. Shoppers can use these discounts to spend less on their preferred products or services. Before you apply for a card, check the benefits it offers and look for any seasonal or additional discounts offered.
In many shopping credit cards, you may also be entitled to receive additional bonus reward points if you shop beyond a particular threshold limit. Keep an eye on these benefits to accumulate more reward points on your card, which you can then redeem for various products and services.
Lastly, some credit cards also allow you to convert some of your shopping costs into no-cost EMIs, so you can repay the purchase cost conveniently over a tenure of your choice, without any added interest.
If you travel frequently for work or for pleasure, there are many credit card uses that you can benefit from. Most notably, many travel-friendly credit cards come with the following perks for frequent travellers.
Air miles are essential reward points that you can redeem for free flight tickets or hotel bookings. Choose credit cards that offer these rewards if you travel a lot.
Many travel-friendly credit cards also give you a set number of complimentary access to domestic and/or international airport lounges.
Travel insurance is another benefit that these credit cards offer. The comprehensive cover usually includes trip delays, cancellations, loss of luggage and death or disability.
You may also use your credit card to make payments abroad. Here, cards with low foreign markups can be ideal, since you will not incur high conversion costs.
Your credit card can also help you build a good credit history and improve your credit score. Want to know about how to use a credit card to give your credit history a boost? Well, to do this, it is crucial to repay your credit card bills on time. When you do this, your credit card issuer passes on this information to credit information companies like CIBIL and Equifax.
These companies then take your repayment history into account and adjust your credit score accordingly. A solid track record of prompt payments will boost your score. In turn, this makes it easier for you to access other credit facilities later in life, if you need to.
Credit cards can also be handy in case you need emergency cash for urgent bills. You can use your card to withdraw cash from an ATM. Alternatively, you can even add your credit card as a payment method in your UPI app and take care of emergency financial needs. Here’s an overview of how to use a credit card in UPI apps.
Knowing how to use your credit card optimally can help you tap into its full potential. And you now know how to make the most of the many credit card uses and maximise the benefits these cards offer. Keep these pointers in mind if you already have a few credit cards of your own, or if you are planning to apply for a new credit card.
Yes, one of the lesser known uses of a credit card is that it can be used in an ATM to withdraw cash. You can use it just like a debit card to get some cash in hand for emergency purposes. However, keep in mind that cash withdrawal charges will apply, and that you will have to repay the amount withdrawn within the due date. So, it's therefore not advisable to use your credit card to withdraw cash, except under dire emergencies.
If you’re wondering how to use a credit card in UPI channels, you’ll be glad to learn that this is fairly easy. Here’s what you need to do. Log into your UPI app and add the credit card as a payment method. You will have to enter the details required, such as the card holder’s name, the credit card number, the expiry date and the CVV.
Your credit card will then be added as a payment method, and you can use it to make payments via UPI.
Credit cards have multiple features that make them attractive to users - these can be rewards, high credit limits, flexible payouts, EMIs on credit cards and more,
Some advantages of credit cards are -
a. Earning rewards on your purchases
b. Safety against credit card fraud which the bank offers
c. Increasing your CIBIL score
d. No foreign transaction fees on most cards
e. More in-hand capital for larger purchases
