Home Finance Reasons Why I Prefer Credit Cards Over Cash in India

Reasons Why I Prefer Credit Cards Over Cash in India

The value of transactions made through credit card has recorded a 30% growth in the financial year of 2018-19 compared to that of 2017-18. India being primarily a cash first nation, this phenomenon shows that the tide is changing.

Now, to understand the driving force behind this change, the advantages of a credit card needs to be understood.


Carrying hard cash can be an inconvenience sometimes. Credit cards can efficiently resolve that inconvenience. Apart from that, it allows the buyer with the ability to spend now and pay later. These cards come with 45-50 day tenor to repay the amount.

Spend as much as you want

A common difficulty with cash is that the individual can only spend the amount he/she is carrying. Now, a person does not need to carry a considerable amount of hard cash. With credit cards, the risks can be eliminated as well as the hassles. These cards come with a substantial credit limit, and the cardholder can spend up to that limit without the need to use cash.

Ease of use

Credit cards are undoubtedly a faster way to pay bills than cash. With cash, it is time-consuming and prone to errors. With a credit card, a cardholder can simply swipe it at the POS machine to complete the transaction.


If an individual loses his/her hard cash, it is impossible to retrieve it or track it. But with credit cards, there is no risk like that. If cardholders lose their card, they can call the customer care number of the card provider and block the card. Also, every payment made with a particular card is traceable, so the chances of misuse can be eliminated easily. For instance, the RBL Card comes with features like in-hand security and zero-fraud liability cover. This feature will cover the cardholder from all any fraud committed from that card.

Reward points

Beyond all the perks mentioned, probably the most attractive benefit of availing credit cards is the reward points that they generate with every transaction. Once the card is swiped, the cardholder will earn the pre-set reward points on that transaction. Now a cardholder can redeem credit card reward points for future purchases.

Note that such reward points can be retailer-specific, and they can’t be availed against other retailers. But with credit card reward points, they can be used universally.

Increases the CIBIL score

CIBIL score is a number that portrays an individual’s credit history. A higher credit score has a lot of benefits, like easy loan approval, higher loan amount at competitive interest rates, etc. Now a cash transaction will not increase the credit score. But on the contrary, if credit cards are used efficiently, they will help to improve your credit score.

Emergency loan

Credit cards are often equipped with an emergency loan feature. Through this, cardholders can apply for an easy pre-approved loan in case of any emergency and skip all the formalities of loan applications.

Credit cards are a convenient tool to have. They often help out a person in their financial emergency or difficulties other than obviously increasing their purchasing power. Also, they provide a degree of financial security to the cardholder as well. So, when used wisely and effectively, a credit card can be a highly beneficial financial tool to have.

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