Everyone has different kinds of needs and wants in their lives, but at times, you may not have adequate funds in your wallet to fulfil them. You can select the best credit card, as the alternative financing options, and going ahead with desired purchases have become extremely easy owing to swift access to credit provided by them. 

Besides, when you buy anything costly via credit card, you can always use the EMI option and break your large purchases into smaller instalments instead of depleting the funds from your bank account. Today, customers also get amazing cashback and offer on their credit cards. Whenever you swipe your credit card, you’ll be incentivized with points and other offers on certain products at the time of purchase. You can avail these points anytime you want. 

Additionally, the customers are not charged with any interest on the outstanding credit amount till the due date of payment. There’s also safety and protection from all sorts of frauds. Customers receive a monthly statement stating all the credit purchasing details which aid the customer to track their spendings and expenses and can manage accordingly.

Now, knowing these specifications isn’t adequate to apply for a credit card. There are myriad things that you need to check before leaping into the decision of having this financial instrument for yourself. At times, credit cards can turn into a responsibility if you take them without knowing the know-how of this financial instrument. Besides, the criteria for credit cards differ from one card to another, and no two credit cards have the same terms and conditions. 

It is extremely important to know each and every piece of information about credit cards before applying for one. Some of the key aspects you need to look at while deciding to take a credit card are as follows: offers and discounts, points, interest, monthly credit limit, late charges, and other terms and conditions.

Purpose of Credit Cards:

Let’s understand the purpose of this instrument. To begin with, credit cards are popularly known for paying for transactions and repaying the same at a later date without any interest on or before the due date.

This financial instrument comes in very handy when you are out of cash or under financial turmoil. All credit cards have a pre-fixed limit where you can spend only to that extent. The credit card limit is determined based on a few factors like personal details, income, past loan history, ability to repay, credit score or CIBIL score, and the credit card type. 

Based on your credit card usage, you’ll also be rewarded with some points. You can use or redeem these points whenever you want like at the time of travelling, shopping, or wherever they are applicable. Using these reward points reduces the actual cost of the transaction or the purchase you made. 

Types of Credit Cards:

As you are now aware of the purpose of credit cards, it’s time to know the types of credit cards. This will help you in deciding which card to apply for and the reason for having that particular card. From basic credit cards to travel credit cards, there are different types of credit cards that fulfil the needs and desires of the customers. Some of the types of credit cards are student credit cards, travel credit cards, low-interest credit cards, shopping credit cards, lifestyle credit cards, and a few others. A few are discussed below. 

Travel Credit Card: The travel industry has always been a booming industry. Today, there are crores of people who are constantly on the move from one place to another or from country to country for work or vacation purposes. For such backpackers, it’s not easy to carry huge chunks of money everywhere around. That’s where a travel credit card comes into place. You can book travel tickets via flight or bus or rail or seaways instantly by using these kinds of cards. In doing so, you get to avail of amazing travel discounts and rewards on making such bookings. Additionally, you can get swift access to VIP suites and other complimentary things during the time of your travel. 

Shopping Credit Card: If you are a shopaholic, the shopping credit card is what you need in your pocket. This card aids you in purchasing all sorts of shopping goods like groceries, apparel, electronic items, etc. You can use this credit card at all partner stores and enjoy the discounts, coupons, and vouchers offered on the purchases you make via this instrument. 

Student Credit Card: Student credit cards are cards designed to meet the financial needs of college students. They come with basic features of a credit card such as an interest-free period, reward earning, and discounts. College students above the age of 18 years can apply for student credit cards. There is no income documentation required. A student credit card can be a great tool for students to learn financial responsibility and build credit.

List Of Reasons Why You Need A Credit Card

After knowing about multiple credit cards, you should also know the reasons why you should have one with you. These reasons will aid you in selecting the best credit card. 

1. Ubiquitous Acceptance: Credit cards are accepted widely all over the world. Whether you want to purchase your favourite dress or go on a vacation or pay for a medical emergency, credit cards are one of the best financial tools to help people meet their urgent needs. Another advantage of using a credit card is that you need not carry cash in your wallet with you all the time. This one financial tool works like magic to pay for whatever you need. The universal acceptance of credit cards made this instrument a popular alternative to other financial tools. 

2. Enhances Your Credit Score: Whether you are a college-going student, or a businessman, or a working employee, or self-employed, having a credit card in hand gets you out of financial problems. Additionally, it builds your credit history as you keep using the card and repaying on time. Now, irrespective of whether you need a loan or credit in the future, it’s pivotal to have a good credit score. As a result, you’ll obtain easy loan approvals without facing any problems. 

3. One-Stop Solution For Buying Anything Anywhere: The advancement in technology, affordable internet, and multiple financial tools made all kinds of purchases effortless for the people. Today, you can sit at your home and do all the shopping with one touch or with just the press of a button. Besides, you get additional reward points or discounts if you make shopping payments on cards. Long story short, whether it’s online or offline purchases, credit cards have the upper hand in generating various benefits. 

4. Solves The Financial Crunch Hassle: Having a credit card in hand not only solves your financial trouble but also saves you from spending your savings. You’ll be able to plan your monthly budget in advance as well. Credit cards also offer other perks like insurance on purchases, loans, instant money when required, etc. All these benefits make this financial tool an appealing choice among customers. 

5. Interest-Free Withdrawals: Some credit cards offer the facility to withdraw cash without charging any interest. This option is for a period of up to 45 to 60 days and will be charged thereafter. Customers are allowed to use this facility at the time of any emergency.


If you think you need a credit card that comes with amazing offers and benefits, check out Freecharge’s credit card on our app. The card offers up to 5% cashback benefits on all transactions. The application process is quick and easy. Please check it out.

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