Swiping the credit card can not only offer you the convenience of making transactions hassle free, it also helps you gain more advantages more than what you buy with the money. There are many reasons why credit cards are chosen to most favoured way to transact. When you want to get more for the money you spend through credit card, you should take the advantage of the perks offered by the card by paying dues on time.
How Can You Benefit From Credit Card Transactions?
Possible tax savings
How can a credit card help you save taxes? The move of offering the tax benefit for using the credit card is yet to be implemented. By providing this offer, the government will be able to control black money circulation in the market. This can be an effective move to reduce cash transactions in the market and promote the country to digitalization. As the government of India is working seriously to offer tax benefits on the credit card usage, be ready to avail them.
Cash back rewards
Many credit card offers cash back rewards on the purchases made through the card. These cash back rewards range between 5% to 10% depending on the place and product you purchase with the card. You can use these cash back points either to redeem the outstanding credit card bills or make some other purchases or get a freebie.
Exclusive privileges offered by the credit card companies are another major benefit that attracts the users to use the credit card to carry their transactions. concierge services, frequent flier rewards, complimentary entries to world class lounges, clubs, special offers at malls, retail outlets, spas, restaurants etc are few exclusive privileges offered to the credit card users based on the credit card used by them. You will be rewarded by the air ticket company and also earn reward points to redeem against your airline tickets in the next trip.
The credit card comes with pre- approved loans to big some big purchases even when you don’t have an amount in your account. When you are unable to repay the credit card dues by next billing cycle, the credit card company gives you an advantage of converting the total due amount into EMI where you can repay the loan in easy instalments. However, the choice should be made very carefully because choosing this option would charge some interest rates. You should choose this option when the credit card company gives an option to convert into interest-free EMI.
When you make the use of the credit card to make purchases, you can easily keep the track of all the expenses and monitor where your money is going every month and take action to cut down unnecessary expenses.