All brands and online retailers now accept payment through credit cards, which means that you can use your credit card to pay for almost anything. Due to the increase in the benefits associated with credit cards, consumers spent around Rs 6 lakh crore using their credit cards in 2018-19.
So, should you start following their footsteps? That’s a hundred-dollar question. The convenience of using credit cards is not limited to everyday purchases at stores or online. One of the main advantages is that you can avoid carrying around a hunk of cash by paying bills with your credit card.
You must have heard about the pitfalls of using credit cards. However, they can be avoided with the responsible use of credit cards. You can use them as a monetary tool to make monthly payments responsibly. If you are careful, then it can be the gateway to financial bliss.
Here are five reasons why you should use credit cards to pay bills.
1] Flexibility to Repay Spendings
Sometimes, it is not possible to pay off significant expenses all at once. This makes credit card a suitable option to use to pay bills. With these cards, you get the flexibility to repay the spending. In general, you get around twenty days ahead of the bill date related to your credit cards to pay for the bills, irrespective of the bank chosen.
Let’s say your credit card bill date is tenth of every month on which the expenses in the last month gets billed. You get another twenty days to pay for this bill till the last date of a month. This twenty-day tenure is enough for you to manage your regular spendings.
2] Earn Points or Rewards
If you’re using a credit card to pay your monthly bills, you can earn a lot of cashback, airline miles, or hotel points as per your spending’s. The extra points and rewards you receive on regular bills can be a boost to your finances as long as you continue to pay the balance of your credit card in full each month.
3] Enjoy Hassle-Free Automatic Payments
One of the most significant credit card advantages is that you avoid missing a due date for the bills using the automatic payment option. Cell phones, Wi-Fi, and cable bills can be paid with a credit card, which belongs to the bill category of ‘set and forget.’Accordingly, when the credit card bill date approaches, you will have your bills already included and paid through your card.
4] Easy to Convert Your Expenses Into EMIs
There are months when you are neck-deep into expenses. Another advantage of using your credit card is that you can easily convert your total bill into EMIs based on your eligibility for the same. This way, you can turn your big purchases or a group of small purchases into easy monthly installments with the ease of credit cards.
Along with that, the rate of interest that banks charge on converting the credit card bills into EMIs is comparatively lower than the other alternatives. For instance,Axis Bank charges an average of 1-2% rate of interest when you choose to pay the bills in smaller EMIs.
Why MSME Loans Are Very Popular?5] Take Advantage of Consumer Protection
Along with rewards, credit cards from most of the banks come with valuable consumer protection. These cards carry zero initial fraud liability, which means that if someone uses your credit card or card numbers to make any false purchases, you’re completely off the hook. You can either report these transactions or get your card blocked.
Credit cards also offer travel-related incentives such as trip cancellation/interruption insurance, auto rental protection, baggage delay insurance, and travel accident insurance.
So, what are you waiting for? Switch to using credit cards right away for a seamless and beneficial way of paying your monthly bills.
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