While Indians believe that debit cards limit spending, thereby keeping expenditure in check, credit cards offer benefits that debit cards don’t. A debit card lets you spend money that exists in your bank account. The only convenience it offers is the fact that you don’t have to carry cash with you.
The main difference between a credit card and a debit card is that credit cards let you spend without touching your savings. If you use a credit card judicially, the advantages outweigh the benefits that debit cards extend.
A credit card gives you the chance to manage expenses in a better way, primarily in the long run. Credit cardholders in India are growing in number. The rise may be gradual, but as more Indians see credit card benefits, the more they want to use them.
5 Reasons Why Individuals are Choosing Credit Cards Over Debit Cards
Debit cards don’t offer you as many advantages as credit cards do. Here are five good reasons why credit cards should be the first payment option.
- Payments are managed better – When you swipe your credit card, you aren’t spending any actual money — at least not your money. Your savings are not being touched. Instead, you are spending amounts that are loaned to you for a period of time (credit period) by the card issuer. At the end of the credit period (typically lasting up to 50 days), you will have to settle a bill or statement.
- So you get time to make payments, and if you have a regular source of income, payments can be made on time. In cases of emergency, when you do not have a large sum in your bank account, a debit card is useless, but a credit card comes to the rescue.
- Credit history is built – If you spend judicially on your credit card and pay bills in a timely manner, you are in the process of building a strong credit history. This is also known as a credit score in quantitative terms. In case you have to take a loan in the future, bankers and other lenders need to gauge your repayment history, by which they are assured of your creditworthiness. Your ability to keep your spending within credit limits and repayment of bills in a timely manner lets issuers know that you are financially responsible.
- Get rewards and offers – The best credit card in India is the one that matches your individual spending pattern. For instance, if you are an avid shopper, the Amazon Pay ICICI Bank Credit Card would suit you best. Credit card issuers (banks and finance companies) offer reward points, deals and offers which can take the form of discounts while shopping, air miles, hotel stay offers and more.
- For instance, the Bajaj Finserv RBL Bank SuperCard offers new cardholders an introductory bonus of 20,000 reward points as a welcome gift. Reward points can be redeemed against services and products purchased at a later date.
- Cash backs and loans – Credit cards give you advantages like cashback offers (up to 10%) when you purchase items from select brands, or products that are part of credit card partner brands. You can also get fuel surcharge waivers at petrol pumps, depending on the type of credit card you have. These benefits amount to large savings in the long run. The Bajaj Finserv RBL Bank SuperCard gives you further benefits by permitting you to take loans for up to 3 months against your credit limit.
- Protection – While purchasing goods and services with your credit card, you don’t spend your own money. In case your credit card is compromised, you are not losing your own money. Instead, all matters relating to fraud are taken care of by the credit card company. This is the primary difference between a credit card and a debit card which makes credit cards the first choice for many individuals.
You can opt for a valuable payment option by choosing the Bajaj Finserv RBL Bank SuperCard. This card offers you multiple benefits, and allows you to use it as a cash withdrawal tool, an EMI card and a loan card with minimal interest rates.
