Home Finance Know the Uses of a Credit Card and Ways to Prevent Credit Card Fraud

Know the Uses of a Credit Card and Ways to Prevent Credit Card Fraud

Credit cards are multipurpose financial tools which allow users with the convenience of ‘buy now, pay later’ facility. Unlike debit cards, these are a type of short-term loan where funds are borrowed from the card issuing company. The utilised amount needs to be repaid before the due date every month with a 0% rate of interest.

There are various uses of a credit card provides cardholders with financial freedom when used smartly.

Know the uses of a credit card

1.   Pay for the regular expenses

The primary usage of a credit card is to pay for various expenses, starting from clothes, groceries and food to flight tickets, hotel stays, etc. Utility bills can also be paid off using this payment card easily. It is a more convenient and viable alternative to debit cards or in-hand cash. Use of credit card for day-to-day expenditures can help you make significant annual savings.

2.   Accumulate reward points

Credit cards are known for their attractive reward programs. You can accumulate reward points with almost every transaction. Specific expenses like buying movie or flight tickets, booking hotel stays, flying frequently attract rewards to make your future expenditures more affordable.

These points are redeemable against gift vouchers, discounts, cashbacks, etc. There are many things to do with your credit card reward points.

3.   Build a strong financial profile

Credit cards are largely instrumental in creating a strong credit profile of an individual. If you pay off the total amount due every month on time, it enhances your CIBIL score and positively impacts the credit history. Conversely, late payments leave a negative mark on the same, bringing down your CIBIL score.

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If you want to avail a loan but hold an insufficient credit score, you can apply for a credit card, use it responsibly and improve your credit profile.

4.   Convert large purchases into EMIs

One of the vital uses of a credit card is to make your high-end purchases more feasible. Convert big expenses into small and manageable EMIs instantly by transacting with a credit card.

5.   Complimentary benefits at airports

Specific types of cards offer exclusive benefits like complimentary lounge access at airports. These lounges are equipped with top-notch amenities for the convenience of passengers. If you are at a busy airport, you can avail this benefit and ensure optimum comfort during transit.

6.   Seek an emergency personal loan

During emergencies or unplanned situations, getting a new loan can be time-consuming. You can instead use your credit card to avail a personal loan on its unutilised amount. Top credit cards such as the Bajaj Finserv RBL Bank SuperCard offers such advances with an interest-free period of up to 90 days.

7.   ATM cash withdrawal

Usually, credit cards allow ATM cash withdrawal but at a high interest rate on its repayment. Note that cash withdrawals are available only on select credit cards and that too against a lump sum processing fee as well as interest charges. However, the Bajaj Finserv Credit Card levies 0% rate of interest for up to 50 days.

Besides the uses of a credit card, awareness against fraudulence and cybercrime, and ways to prevent those are also essential.

How to prevent credit card fraud?

Nowadays, the best cards in the market come equipped with security features like in-hand security and zero-fraud liability cover for card protection. You should apply for such payment cards from a reliable company.

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Apart from this, a few other ways to prevent credit card fraud are as follows:

  • Do not share your credit card’s details with someone claiming to be the card issuing company.
  • In case of loss or theft, report it immediately before any fraudulent happens.
  • Ensure to make a strong password with a mix of lower and upper case characters and numbers.

With these preventive measures and tips for the best uses of a credit card, you can keep it safe from frauds effectively.

Apply for a feature-rich card with financial companies like Bajaj Finserv. They also bring pre-approved offers on a plethora of financial products, including credit cards, home loans, personal loans, business loans, etc. Not only do these offers simply the entire process, but they also make it less time-consuming. Check your pre-approved offers online with details such as name, phone number, etc.

India has recently experienced a surge in the number of credit card users because of the tool’s features and benefits. So, avail the best card that meets your purposes adequately.

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