Credit cards: the miracle of plastic money!

Have you ever had to ignore an irresistible offer for an LED TV just because it was the month-end and you were still waiting for your salary? Or find yourself without enough cash to handle an accident or illness in family? While you can postpone buying a luxury product if there’s a cash crunch, you can’t avoid spending in a family emergency. And the best option for impulse or emergency is that miracle of modern finance – the credit card .
Credit cards have become hugely popular, mainly due to the 24-hour convenience and access to instant cash that they provide. So much so that many people may have just one or two bank accounts, but three, four or even more! What explains the craze for plastic? Here are some of the reasons:
• With most shops accepting credit cards, you needn’t carry large sums of cash in your wallet when you go shopping.
• They can be used securely for shopping online.
• Almost all major banks offer additional benefits on their credit cards . With every purchase, you get reward points which can be used to avail offers like cash back, discounts on holidays, etc. Many providers also offer free life, disability insurance etc along with the credit cards.
• There are many types of credit card, which you can choose depending on your credit or spending capacity. These include Silver, Gold, Platinum, Low Interest, Cash Back, Premium etc.
• It’s the best option for availing short-term credit, since you have to pay only when you get the bill. If you are prompt with your payments and avoid paying interest, a credit card is a huge convenience.
• Many cards are co-branded and provide great benefits and offers through partner brands
Make the best of your credit card
• A credit card definitely gives the freedom of instant cash.

But spend wisely, or you may end up paying huge sums in interest payments, especially if you begin availing of revolving credit.
• Maintain a timely bill payment schedule, as this may save you from paying late charges or interest.
• Keep your credit card safe. If lost/ stolen report it immediately to the bank and block it to prevent misuse.
• Study your credit card statement transactions closely. This will prevent you from paying for any transactions that you may not have made.
• Always read the terms and conditions carefully before you apply for a credit card. Feel free to ask about anything mentioned or not mentioned in the clause.
How to apply for credit cards
To own a credit card, you can either walk down to the respective bank and apply personally by filling the required form, or log in to the bank’s website and submit an online application. A few days after submitting the required documents and verification, the bank will mail you the card to your postal address.
Whether or not you get a card depends upon your eligibility criteria like annual income, credit score and other requirements. Individuals between ages of 21 and 65 years are eligible.
A credit card makes your life so much easier; and is today a valuable, and necessary, addition to everyone’s wallet. But use it judiciously.

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