Is Credit Card Good or Bad?

Having a credit card has always raised questions among people and has been a constant source of debate over the years. Is Credit Card Good or Bad?

Rishabh faced one such dilemma. He was always hesitant to use a credit card despite the amazing offers that his bank was ready to offer him. He had countless reservations, and he had a fear of overspending when he was struggling with his student loans.

However, the day he decided to get one, he was quite pleasantly surprised by the numerous benefits that came along with possessing a credit card.

So, what exactly made him change his mind? Let’s find out!

Debit Card Vs. Credit Card

Debit cards and credit cards actually look like identical twins with 16 digits printed on the card, expiry date, and a pin code. However, they could not be farther apart in terms of their usefulness.

To begin with, credit cards offer their users a provision to borrow money and rewards them for excessive use. These rewards come in the form of travel points, cashback, high security on your cards and much more.

On the contrary, customers using debit cards can only use the money that is already deposited in their bank accounts.

Although concerns of overspending might seem real, here is why you should become a credit card user today!

  • Special Travel-Related Offers for Credit Card Users

  • When you own a credit card, you can avail offers from specific travel websites like Yatra, MakeMyTrip, ClearTrip, etc. With a credit card, you can sign up with them to enroll yourself for their reward system and get some points every time you make a booking using your credit card.
  • If you are an extensive traveler, you can actually end up making enough to sponsor one of your trips. What more can you ask for!
  • Maintain A Good Credit Score

  • Using a credit card with good practices can also go a long way in getting a good credit score.
  • You just need to ensure that your outstanding balance is low and you are always paying your credit card bills on time.
  • There are several benefits to having a good credit score. It puts you in a better position to negotiate for lower interest rates when you apply for loans. Moreover, it also gives you an opportunity to apply for loans with higher amounts.
  • This increases the likelihood of being granted a loan as opposed to the event where you do not have a good credit score.
  • On top of that, you can also prove to be an authentic user and can avoid scrutiny after you file your ITR at the end of every fiscal year.
  • Extra Points for Every Penny Spent

  • The biggest advantage that makes credit cards a much-desired entity is that you can earn points on every single transaction.
  • With every transaction, you can get a few points that you can later use and redeem for shopping on other sites or booking event or travel tickets.
  • This proves to be quite rewarding; given that you can now use those reward points to buy things instead of using your credit card all over again.

  • Avail Airline Reward Programs

  • You can sign up with an airline for their reward programs with your credit card. For example, the JP Miles program gives you extra miles and reward points whenever you book flights with Jet Airways.
  • So, you can opt for a credit card with travel benefits where your bank has a collaboration with an airline. Therefore, if you are a frequent traveler, you can get rewarded with these credit card programs and gain extra miles on every booking.
  • Banks like Amex, HDFC and others have such collaborative programs and options where they offer you a provision to double your miles or avail other benefits when you buy a ticket from the website of their partner airlines.
  • Depending on the privileges and the credit card you choose, you can use it to your advantage.

A Simple Way to Eliminate the Concerns of Overspending On Your Credit Card

If you are still hesitant in going that extra mile and buying a credit card for yourself, let us take this opportunity to tell you that there is a simple way to avoid overspending on your credit card if that is what is holding you back.

One ideal way is to have a credit card limit which is less than your monthly salary so that you can control your credit card transactions and not end up spending more than what you are earning.

Another approach can be to lock your credit card in a safe when you see the month-end approaching or you have already exhausted your monthly limit.

Bottom Line

Therefore, it will not be wrong to say that owning a credit card can do you more good than harm in the long run.

When you use a credit card, you are guaranteed to get ample returns on every transaction, quite contrary to using a debit card.

If you are worried about spending more than you earn, you can always set your credit card limit according to your income to avoid over expenditure.

You can also earn frequent travel miles and potentially buy yourself a complimentary airline to your favorite destination.

If you are still not convinced, consider the possibility of getting a loan anytime and anywhere in times of need with a credit card!

So, when are you applying for one? 

Get your Jet Airways American Express Platinum Credit Card, you will get 10,000 Bonus JPMiles + one-way complimentary Jet Airways Base Fare Waived Domestic Ticket + 2,000 Referral Bonus JPMiles

©2018 ThExTravel

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