Be it online shopping, buying a large expense, collecting reward points, splitting your bill into Equated Monthly Installments (EMIs) and more, an online credit card offers multiple benefits if you use it smartly.

Yes, in today’s time, online credit cards have emerged as one of the most important yet basic financial instruments easily available these days to cover money requirements. In the context of the same, let’s provide you five benefits of using your best credit cards not only for online shopping but everything else as well!

You can collect handy rewards

Most of the credit cards issued in India offer multiple layers of reward points when you use them. Thus, opting for an online credit card that gives you best rewards should be a good thing to do. Do you do online shopping or are you a movie enthusiast? You can apply for cards that offer maximum rewards for your needs. Also, redeeming the points later can help you save more!

Enjoy lower interest rates

If you have a credit card from a good company, you can easily avoid paying a higher rate of interest. How? You can make the most of the EMI facility at zero extra cost by spreading your large purchase, pay EMI and save paying in one go! Some credit card companies also offer No Cost EMI facility that also helps you enjoy not paying an extra 12-18% on your purchase. Thus, apply for a credit card that offers you No Cost EMI facility to enjoy using it while still letting you save on interest rates.

Cash withdrawals and part-prepayments

You can also easily withdraw a pre-determined amount from an ATM in case you are short of cash, or there are no amount in your savings account based debit card. While some credit cards let you withdraw some money from an ATM, they also charge you interest from the day of the withdrawal; you need to know the terms of using it. Some NBFCs also let you withdraw some amount from an ATM without any interest charges for a fixed period. Also, you can make pre-payments on an outstanding even before the due date as per your wish which may reduce the overall bill. However, you should also ask your service provider if there are any charges for using the facility or not.

Added benefits

Some best credit card companies also let you lap up some extra added benefits. These benefits may be provided in the form of exclusive discounts at partner stores, free movie tickets, airport lounge access and more. Some portions of using availing these added benefits are completely free while some portions are paid. Example – You may be allowed an airport lounge access 2-3 times free in a calendar year. If you wish to use the service for more than 2-3 times, you may be charged.

Credit limit to a loan

Some of the leading online credit card companies may allow you to avail a loan against your credit limit. Thus, look for such offers while applying for the best credit card. Like this, you can easily get quick monetary support and save money as well.

The Bottom Line

Once you are aware of your needs and wants while using a credit card, you can easily avoid falling into a debt trap and use it only during an urgency. Now that you are aware of the credit card benefits that you can make, apply for one as per your needs and affordability.

Author's Bio: 

Aman is working in the domain of Investment management in one of the top universities.