Many people are aware of the fact that a credit card allows purchase of products or services on credit, but not everyone knows that this same card can help them save money as well. Yes, in India credit cards offer certain benefits using which cardholders can save cash. One must remember that the benefits differ based on the type of card being purchased.

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Some of these benefits that help save are as follows:
Protection Against Fraudulent Activities – If you lose your wallet, you will  end up losing all the cash in it for sure, but if you lost your credit card, you do not have to be sad because most credit cards have zero lost card liability feature. This feature protects people from fraudulent transactions made using their cards in case it’s stolen or lost. Some cards protect the customers even before they lose their cards. Apart from this, credit card companies in India protect cardholders against online frauds through various ways. One of those is the multiple steps involved in the online payment authorization process.
Life Insurance – If you have a credit card that offers free travel or life insurance, you can save a lot of money and at the same time feel protected. Some cards even provide insurance against hijack to people when they travel by flights.
Low Charge for International Transactions – If you travel abroad a lot, then buying a credit card that charge less for foreign transactions is a good idea. Credit cards offer really good forex rates and there are some cards that only charge around 2% transaction charge. Even while purchasing products from foreign websites, using such cards might benefit you a lot.
Lost Baggage Claim – Some credit cards offer insurance for lost baggage when cardholders book their flight tickets using them. If you own one such card, then you can claim the amount mentioned in the card insurance policy easily if you lose your baggage.
Free Access to Airport Lounges – If you want to visit an airport lounge, you will be asked to pay an entry fee, but if you own a credit card that offers free access to airport lounges, then you can enjoy the facilities of the lounge and save money.
Free Club Memberships – Some credit cards offers free memberships of different clubs to the cardholders. For example – Golf clubs, Vistara Club, Hotel memberships, etc. These memberships help them enjoy discounts and other deals that are available exclusively to the members.
Credit History – Credit cards help you a lot in building your credit score. This score measures your credit worthiness and is used by banks while deciding if they want to provide a loan to you or not. Use your credit card wisely and pay the bills on time to increase this score.
Loan on Credit Card – Many banks provide loans against credit cards to customers. The credit worthiness in this case is decided based on the cardholder’s card usage pattern and credit limit. If cardholders have a very good history of bill payments, then banks may approve their loan requests easily.
These are some of the many credit card benefits that help cardholders save cash. Many people think that credit cards only offer reward points or miles. It is not true, credit cards have a lot to offer if you know how to use it well. People can end up with serious financial issues if they do not use their credit cards carefully.
All said and done, credit card is an amazing financial tool and if you don’t have one, apply for it today and enjoy saving while spending.


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