In India, using a credit card as a payment method is not a new phenomenon. However, a recent study by the Reserve Bank of India states that since May 2018, there has been an increase in the number of credit card users by 27%. Indeed, it signifies the trust and acceptability of credit cards among people.

So, what makes people choose a credit card as a mode of making payments? Along with the inclination towards digitization, it could also be the various benefits it offers. Let us understand the benefits of owning a credit card.

• It is convenient
  Credit card is convenient to carry and use. You don’t need to look for change or deal with torn or damaged notes. You just have to swipe your card and the payment is done.
  Similarly, while paying through credit cards, you need not worry about noting down your expenses, as all the payments are automatically recorded in your credit card statement. Moreover, through a credit card, you can easily distribute big-ticket purchases in small instalments that you can afford and pay comfortably.

• Earns reward
  A report by credit rating agency CIBIL states that around 93% of credit card users in India use credit cards for shopping. It is majorly because credit cards help you earn several rewards and discounts. With each payment, you can earn cashback, discounts and reward points provided you choose the right credit card.

• Is safe
  Credit cards are safe and reliable due to several features. If you lose your card, you can intimate your bank to block it for any further transaction. Moreover, you can reverse any wrong purchases done through your card using the price protection and purchase protection feature provided by most of the credit card issuers in India.

• Builds credit score
  A credit card is an efficient tool to build your credit score. When you use your credit card responsibly, you gradually improve your credit score. A good credit score helps you in qualifying for competitive interest rates and affordable loan offers.

Tips to maximize your credit card’s potential

While each credit card has its own benefits, it is up to you how you make the most of it. Using your credit card smartly will not only help you maximize its potential but also save money. Here are a few tips that can help you do so.

• Choose the right credit card for you
  Though every credit card might provide you offers, choosing one that suits your needs and preferences will be the most beneficial for you. For example, you can get a travel credit card to earn discounts on hotels and flights if you are a frequent traveler. Similarly, if fuel costs are your major monthly expense, a fuel credit card would be a better option for you.

• Pay bills on time
  While paying bills on time is an implied rule, paying them in full every month is equally important. Do not be allured by the facility of minimum payment as it can pile up your debt. Repay the bill amount as much as you can every month and save yourself from the debt trap.

• Monitor your credit card statements
  Keep a close check on your credit card statements. Your credit card statement contains the necessary information about all your transactions. Monitoring them will help you know where and how much you are spending along with detecting fraudulent transactions or wrongly debited expenses, if any.

By selecting the right credit card, you can enjoy a host of benefits that could help you manage your finances and save money. Citi Credit Cards offer you a host of options depending on your needs. If you would like to apply for a Citi Credit Card, click here - Apply now.