5 Reasons You're Losing Money Without a Credit Card (No, Really!)

What if I told you that by not having a credit card you are secretly losing your money? And no, I'm not trying to sell you anything!

Hey there, smart spenders! Today, we're busting the biggest myth in personal finance.

Spoiler alert: fourth one’s a kicker.

The first thing that I am going to talk about is free money. Seriously, I am not joking! In fact, I am talking about the magic of cashback and rewards.

Every time you swipe your debit card, you mostly get... nothing.

But with the right credit card you get cashback and reward on all types of expenditure – whether it’s on groceries, fuel, eating out or flight tickets.

On an average monthly spend of ₹30,000, you could be earning back ₹9,000 to ₹15,000 per year! And here’s a pro-tip - Look for cards with no annual fees to maximise your gains.

WHY HAVE A CREDIT CARD?

The second reason using a credit card is good for you is about building a credit score.

Your credit score is like your financial report card, and it affects everything from loan approvals to interest rates. And using a credit card responsibly can boost your score faster than any other method!

So, use your card for regular expenses and pay the full amount on time. It's like hitting the gym for your credit score![FF TEXT 3

WHY HAVE A CREDIT CARD?

The third reason a credit card makes so much sense for a young professional like you: Interest-Free Loans. Yes, you heard that Right!

Imagine walking into a bank and asking for a 45-day interest-free loan. They'd laugh you out, right? But that's exactly what your credit card offers!

Let's say you buy a new phone on the 1st of the month.

Your bill is generated on the 31st, and you have 15 more days to pay. That's up to 45 days of free credit! But remember, this works only if you pay your full balance. Partial payments are a trap!

Also Watch: Why Your Salary is Disappearing: The Rs.50 Lakh Secret No One Tells You

Now, the fourth reason using a credit card makes great sense is fraud protection.

That "Picture this: Your card details get stolen. Scary, right? In case of internet banking or debit cards, your bank account could be drained in minutes. But with a credit card?"

You're protected! Report the fraud, and you're not liable for unauthorised transactions. It's like having a financial bodyguard!

And now the last one, but certainly not the least – credit cards offer you travel perks that make you feel rich!

Ever wanted to feel like a Bollywood star at the airport? Well, some credit cards offer their users meet and greet services at airports.

But apart from that, they also offer free airport lounge access, travel insurance, concierge services and also emergency card replacement abroad.

Now, I know what some of you are thinking - credit cards are dangerous!

Here's the truth: Credit cards are tools. Like a knife in the kitchen, they're incredibly useful when used correctly. So there you have it! Five ways credit cards can actually make and save you money.

Also Watch: Nobel Prize in Economics Awarded for Research on National Prosperity