{"id":4333,"date":"2023-02-10T18:11:24","date_gmt":"2023-02-10T12:41:24","guid":{"rendered":"https:\/\/fatakpay.com\/blog\/?p=4333"},"modified":"2025-11-12T16:37:31","modified_gmt":"2025-11-12T11:07:31","slug":"the-smart-way-to-use-credit-cards","status":"publish","type":"post","link":"https:\/\/www.fatakpay.com\/blog\/personal-finance\/finance-tips\/the-smart-way-to-use-credit-cards\/","title":{"rendered":"The Smart Way to use Credit Cards"},"content":{"rendered":"\n

Ever wondered why banks keep pushing users to sign up for credit cards<\/strong>? Does it make you think whether having a credit card really has its advantages? Let\u2019s venture deeper into the blog to understand The Smart Ways of Using <\/strong>Credit Cards.<\/p>\n\n\n\n

First let us understand about the term Credit Card<\/a><\/mark> and how different it is from a Debit Card.<\/p>\n\n\n\n

A Credit Card is a rectangular piece of plastic issued by a bank, that allows users to borrow money and pay  for goods and services.<\/p>\n\n\n\n

When it comes to a Debit Card, you can only spend that money which is there in your bank account. With a Credit Card, you get access to additional money which is not in your bank account. You can use this additional money to buy goods and services.<\/p>\n\n\n\n

Based on past factors, such as your spending history, your CIBIL score<\/a><\/mark>, the time you take to pay the borrowed money, your Credit Card limit is decided. The limit tells you how much money is allocated to your Credit Card.<\/p>\n\n\n\n

The return window for Credit Cards is usually 45-50 days. For example, if you used your credit card on the 1st of February, you have essentially borrowed money from the bank. In this case, your return date for paying back the money is 17th or 22nd March (depending on whether the return date is 45 days or 50 days). If you return the money within the return window, the borrowed money is paid interest free. The minimum return window for credit cards is 15 days. <\/p>\n\n\n\n

Let\u2019s first look at the advantages of using a Credit Card. Imagine you are in a situation where your family member has had a medical emergency. If you don\u2019t have the required funds to admit them in a hospital, your debit card is rendered useless. However a Credit can be useful in this case as you can withdraw an amount which is more than the money in your current account. The assumption is that the credit card limit is enough to cover the medical expenses. For emergency purposes a credit card is very useful. The Second advantage is that you get an interest free loan <\/strong>for a limited window (50 days in most cases). If you pay your Credit Card bills on time, it helps you improve your CIBIL Score. If you have a good CIBIL score, it is easier for you to get bigger loans<\/strong>. Credit cards<\/strong> also have a very nice feature of reward points. Everytime you use your credit card, you get reward points. Once you have accumulated a substantial amount of reward points, you can use it to avail cashback of upto 5%. Isn\u2019t that awesome?<\/p>\n\n\n\n

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