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Why you need to take a Credit Card?

# Little Savings

While most of the people are afraid of using the Credit Cards, I recommend at least one should have a Credit Card.

Before supporting my point, I need you to go through this.

How Credit Card works?

Credit Card is in-short, an amount(upto credit limit) has been given to you as a loan and need to pay back in the maximum of 20-50 days.

Little Savings - Credit Card


To illustrate the above example, A person bought a TV using a Credit Card on 4th of August, where he can pay the bill again after 24 days.

In the same way, if you use the credit card next to the bill generated date(9th Aug), you can repay it after 50 days.

This is one of the classic example for the Credit Card benefit.

So, how banks benefit from this?

To be frank on this point, bank is offering an outstanding service to its customers, which most of the people deny it, after reading this.

But, if you properly use the credit card, it is one of the best service among the products serving by banks. Banks will charge only when we not using it properly. If you are able to manage your money, then the Credit Card is for you.

Go through this link for the different charges levied by the banks for using Credit Card? This will help you for better managing your Credit Card and escape from the charges levied by them.

How about cost for maintaing the Credit Card?

Benefits will incur some costs. The same applies for the Credit Card. But, If you don't want to bear any additional cost, so many banks offer the Credit Cards with Free Annual Maintenance.

There is another way, if you spend a minimum amount with the Credit Card per annum, banks will give waive off for the Annual Maintenance.


Most caching benefits with Credit Cards

Rewards, Rewards, Rewards

Every bank with every credit card, they offer reward points.
A points will be added to your card account for spending/purchases with the card. Usually this will in the range of 1-4 Reward Points for spending 100-150 rupees.

On an average, if you are spending 5K for house expenses with the Card, you can earn 50 - 200 reward points per month.

What you can do with Reward points?

There are numerous ways to use the reward points.

  • Can convert to cash
  • Can pay the utility bills
  • Can do the Recharge 
  • Can redeem for fuel
  • Can redeem at Airport Lounges
It is not limited to the above list. An idea to save few bucks while using Credit Card.

How to find the best card for yourself?


There are different category Credit Cards based on the requirements of the customers.

But for you, analyse where you spend your expenses more. It may be either movies, restaurants, supermarkets, pertol bunks etc., I availed, IRCTC SBI Card, since I will travel more.

Whatever may be, go through all the terms and conditions of the Credit Card before registering it.

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