Sonya is scared of using her credit card. She thinks credit cards are a way to get buried in debt. Though common, this is a wrong perception. Sonya simply hasn’t got down to understanding how credit cards work and how they can simplify her life. Out of force of habit, she prefers using her debit card for all her purchases, no matter how big or small.

There are multiple benefits a credit card offers over a debit card, which is not very different from paying by cash. Here are six reasons why you need to start using your credit card:

1. Buy time in a cash crunch

With a credit card, you get a period of 30-50 days to pay for your spending. This comes handy when you are strapped for cash and need some help to tide over the last week of the month. With a debit card, you can pay for something only if you have enough money in your account.

2. Avail of reward points/cashback

This is one of the most lucrative benefits of using a credit card. Every purchase you make with your credit card earns you reward points or cashback. These can later be redeemed for shopping vouchers, travel miles, or statement credit. If you do your entire monthly shopping and pay bills via credit cards, you can even accumulate substantial reward points to sponsor overseas air tickets.

3. Protect yourself against theft/fraud

While both debit and credit cards offer fraud protection, credit cards have a built-in threshold to limit liability when suspicious activity is noticed on the card. In contrast, all the funds from a banking account can be spent easily in case of fraud or theft. Even after filing for a recovery, you could be temporarily be left without any liquid cash in case of a debit card, while the credit limit can be proportionately reinstated on a credit card.

4. Build a great credit score

A credit score is important as it is used by financial institutions to judge you as a borrower. A high score proves that you are a low-risk borrower, while a low score might lead to lenders questioning your ability to pay back what you owe.

Using your credit card regularly and making timely and full payments is a great way to build up your credit history and improve your credit score. Every transaction you make on your credit card positively impacts your credit score. A higher score makes getting a home loan or car loan much easier and at a comparatively lower rate of interest. On the other hand, using your debit card has no consequence on your credit score.

5. Make travel easier

Today, credit cards have become indispensable while travelling. Most consulates require you to share a copy of your credit card while applying for a visa. Even online hotel bookings require you to key in your credit card number while reserving a room if you wish to pay after your stay. Your credit card and its credit limit act as a security deposit when you travel.

6. Make big-ticket purchases on EMI

A credit card gives you the purchasing power to buy expensive goods such as a widescreen TV or a car on EMI. You can make immediate payment and then pay it off over a certain period. If you are a responsible user of your credit card, you also get pre-approved loans, which you can leverage if the need arises.

7. Get help in an emergency

You can think of a credit card as an instant loan you can get without any documentation. So, in case of an emergency, you can rely on your credit card to provide the necessary funds that can be paid off later. No such benefits come with debit cards.

If you’re looking to get a credit card for yourself, visit Chqbook. Not only does Chqbook present you with various credit cards and their features and benefits, it also provides you with expert and personalised recommendations based on your financial needs and profile.

So get over your fear of credit cards and start leveraging its benefits. Just remember to use it responsibly!