What Are The 5 Advantages Of Credit Cards?

The facility of credit cards has drastically changed the way people shop. You just need to visit an offline or online store, pick what you want to buy, and pay using a credit card. You can shop up to your credit limit as far as the credit card company trusts you for repayment.

These days, almost all financial institutions offer various types of credit cards with unique features and advantages. Apart from shopping, you can also borrow a Personal Loan on credit card to handle emergencies or fulfill desires.

While a credit card seems advantageous, let's look at its top five benefits.

Rewards are one of the greatest advantages of using a credit card. However, since there are so many credit cards with various types of offers and rewards, you must find one that best suits your requirements and spending habits. When you decide to

apply credit card, here are a few types of rewards you may gain with credit cards.

Cashback is the most common credit card benefit. You can earn rewards for daily purchases like fuel, groceries, etc. Whenever you purchase for a minimum amount, you earn a cashback worth a percentage of the expenditure.

Another common credit card reward is miles. With a travel credit card, avid travelers earn points or miles on each qualifying purchase and redeem rewards like airline upgrades, hotel discounts, vacation rentals, cruises, rental cars, lounge access, etc. With some cards, you can redeem your accumulated points for other things, too, other than travel.

Points are another type of credit card reward. The method of earning, calculating, and redeeming the points differ between card companies.

Whichever type of rewards your credit card provides, check whether they are rotating or expire before a specific date. Redeem them before they expire to make the most of your credit card and save money.

A decent credit score helps get better deals from lending institutions with lower interest rates, ample loan amounts, comfortable repayment terms, and favorable terms and conditions. Responsible usage of a credit card helps build or improve your credit score. The best practices for using a credit card responsibly include keeping the credit utilization rate low and always paying the credit card bills on time before the due date.

Opt for a secured card if your primary purpose in using a credit card is to build your credit score. Its operation is similar to that of a regular credit card, but you must secure it against a security deposit. Since you have a low credit score, the card provider uses this security to let you borrow money. As you use the card and pay its bills on time, you improve your credit score gradually.

Credit cards must be equipped with the latest technology and ample digital access. Most credit card issuers have an app, like the iMobile Pay app from ICICI, that you can use to manage your account anytime, anywhere. The app allows you to track your credit card status and receive reminders, so you never forget a payment due.

Using the app, you can keep an eye on your credit card status and receive alerts whenever you are about to cross your credit limit. Bill payment reminders also let you pay bills on time and improve your credit score.

Unfortunately, credit cards are exposed to unauthorized usage and fraud. The good news is that ICICI Bank offers 3D secure services through VBV, MasterCard SecureCode, and American Express SafeKey. VBV (Verified by Visa) is a new VISA service that allows secure online shopping with a Visa card only on sites verified by Visa. MasterCard SecureCode is a secured, user-friendly online payment service from ICICI Bank. The service confirms your identity before making a payment. The American SafeKey lets you shop online by entering your correct billing address and card information.

Some other security features with a credit card include the following:

Such security features maintain your peace of mind, as you know your money is safe even in case of a loss or theft.

Many financial institutions offering credit cards, such as ICICI Bank, provide Personal Loans on credit cards based on a customer’s transaction history, payment habits, and expenditures. It is a pre-approved Personal Loan facility that does not require any documentation and paperwork. Since these are unsecured loans, you don't need to pledge any security or collateral against the loan you borrow. Finance companies offer these loans to select customers with high repayment capacity.

The most important advantage of borrowing a Personal Loan on credit card is that it provides easy access to emergency funding without any end-use restrictions. The approval and disbursal are instant, with ample loan amounts and attractive interest rates. Moreover, you can repay the loan in a tenure of up to 60 months with easily affordable EMIs.

If you are a credit card holder and need immediate cash for personal use, apply for a Personal Loan on credit card from ICICI Bank. A robust repayment history, consistent transaction pattern, and good track record of credit card usage make you eligible for these loans. You receive the loan amount directly to your ICICI savings account or another bank account through demand draft or NEFT. You can apply for Instant Loan through net banking or the iMobile Pay app.

Credit cards are now an integral part of the urban lifestyle, providing a wide range of benefits, convenience, and security. When it comes to the best credit card services in India, ICICI stands at the forefront providing numerous benefits to empower your financial journey. From enjoying rewards and building credit scores to monitoring account usage and getting a Personal Loan on credit card, embrace these five advantages of credit cards to unlock immense financial flexibility in India.