Having a credit card is a great way to manage your finances during a cash crisis. It
allows you to access funds, make purchases, and repay the amount at a later
stage. The best part is that credit cards are widely accepted and offer great
financial freedom if used judiciously.
If you are new to credit cards, keep on reading to know more about them and
Credit card meaning
A credit card is a type of credit facility, provided by banks that allow customers to
borrow funds within a pre-approved credit limit. It enables customers to make
purchase transactions on goods and services. The credit card limit is determined
by the credit card issuer based on factors such as income and credit score, which
also decides the credit limit.
The credit card information includes credit card number, cardholder’s name,
expiration date, signature, CVC code, etc. The best part about a credit card is that
it is not linked to a bank account. So, whenever you swipe your credit card, the
amount is deducted from your credit card limit, not your bank account. You can
use it to pay for food, clothes, take care of medical expenses, travel expenses, and
other lifestyle products and emergency services.
Advantages of having the best credit card
After knowing what a credit card is, let us find out the benefits that come with it.
Depending on your needs, a credit card comes with a host of features and
benefits to save money while making transactions. Here are the top benefits to
help you to know more about credit cards:
Hassle-free shopping experience
The benefit of having the best credit card is that it has made shopping easier and
convenient. You no longer need to visit malls or stores to make purchases. With
your credit card, you can make big purchases from the comfort of your home. It
can help you avoid putting any burden on your monthly budget with a credit
A credit card allows you to buy products and services on low-cost EMIs. Another
option that has become popular is the Buy Now, Pay Later, which is ideal for
salaried borrowers with fixed monthly incomes.
No need to carry cash
Credit cards are the best alternative to cash, as it eliminates the need for carrying
cash. Credit cards are accepted almost anywhere you go. If you do not have cash,
you can simply use your Kotak Mahindra credit card to cover your expenses and
repay the outstanding amount at the end of the month. The process of making a
transaction is simple. All you have to do is swipe your card at the PoS terminal or
enter your card details to make online payments.
Rewards, cashback, and offers
The best credit card comes with rewards and cashback that fits your needs and
requirements. Depending on your credit card issuer, your credit card comes with
a host of special discounts, cashback, or rewards points for purchases made
through it. Before getting a credit card, it is imperative to assess your needs. For
instance, if you are a frequent traveller, it would be wise to choose a credit card
that offers free airport lounge access or have travel insurance. Also, there are
credit cards that offer special discounts on shopping, travel tickets, and
Easy cash withdrawal
Another benefit of having the best credit card is that it allows you to withdraw
cash whenever the need arises. However, it is worth noting that using your credit
card to withdraw cash follows a small fee that you will have to bear while
repaying your outstanding amount.
The best thing about a credit card is that it is accepted worldwide, as it is the most
common mode of payment across the world. You can use your Kotak Mahindra
credit card to make international bookings and payments at airlines, restaurants,
hotels, stores, and petrol pumps with ease. It makes your travels around the
world convenient. However, using your credit card abroad can cost you high
foreign transaction fees and high foreign exchange rates.
If you are wondering what is a credit card, it is a type of loan that offers to cover
the cost of emergencies for you and your family. For instance, you can use your
credit card to pay your medical bills. It eliminates the worrying of arranging funds
for your medical bills. Keep in mind that you will have to make on-time payments
to avoid hefty interest charges and higher APR%.
Improves credit score
Some people also use credit cards to improve their credit scores. Your credit score
is a three-digit number that indicates whether or not you are a creditworthy
borrower. It is considered as one of the crucial parameters to determine a
borrower’s eligibility. When you repay your credit card bills on time, it leaves a
positive impact on your credit score, allowing you to secure loans in the future.
So, apply for a credit card to make your life convenient and manage your finances