Handy during an emergency

If you are posted far away from your home city and there is some emergency at your home, you have to reach home immediately with your family then urgent air tickets which you have to buy for your family(assume 4 members including you) will cost you approx. Rs 50,000 for return air tickets. You can buy air tickets with credit cards if you don’t have cash and repay later.

 Purchasing Power

Credits cards can help you make large purchases that you might not immediately have enough cash for since you can stretch the cost over time to make it more manageable

 Reward points

Many credit cards offer reward programs that will accrue points, discounts, or other benefits like frequent flyer miles.

Convenience

Credit cards reduce the need to carry cash.Most retailers accept credit cards and they are pretty much required for online purchases. Sometimes attractive offers and discounts are available online if you buy using credit cards.

Helps to improve Credit Score

Responsible use of credit card over time builds your good credit score, qualifying you for better interest rates and other financial benefits like taking home loans, car loan etc.

Cash Back

The cash back credit card was first popularized in the United States. Use the card and get 1% of your balance refunded regardless of what you bought or where you bought it. Today, the concept has grown and matured. Now, some cards now offer 2%, 3% or even as much as 6% back on selected purchases.

Universal Acceptance

Certain purchases are difficult to make with a debit card. When you want to rent a car or stay in a hotel room, you’ll almost certainly have an easier time if you have a credit card. Rental car companies and hotels want customers to pay with credit cards because it makes it easier to charge customers for any damage they cause to a room or a car.

 Insurance

Most credit cards automatically come with a plethora of consumer protections that people don’t even realize they have, such as rental car insurance, travel insurance, and product warranties that may exceed the manufacturer’s warranty.

 Grace Period

When you make a debit card purchase, your money is gone right away. When you make a credit card purchase, your money remains in your savings account until you pay your credit card bill.

Hanging on to your funds for this extra time can be helpful in two ways. First, the time value of money, will add to wealth. Postponing payment makes your purchase that much cheaper. Beyond that, your cash will spend more time in your bank account, and if you pay your credit card from a high-interest checking account and earn on your money during the grace period, the extra will eventually add up to a meaningful amount.

Second, when you always pay with a credit card, you don’t have to watch your bank account balance as closely.