Why you should consider credit cards for online payments?

Posted by Divya Kapoor on July 2nd, 2019

The online marketplace has become the one-stop solution for all your needs. Whether you want to buy apparel, gadgets, home appliances or financial products, the online marketplace has suitable products for you. Shopping online gives you a wide range of options and also good deals and discounts. Paying for online transactions is also easy as you have multiple payment options. Which option do you think is the best?

Paying through best credit cards is one of the best options for your online transactions. Here are the reasons why –

• You get good reward points

Credit cards allow you reward points on every transaction that you do. Even when you transact online, if you use your credit card for making the payment, you earn reward points. These reward points can then be exchanged for attractive gifts and vouchers. Moreover, there are many shopping oriented credit cards, which also give you discounts and cashbacks on online payments. So, when you have such cards you should use them for online payments for earning discounts and cashbacks.

• You get the EMI facility too

Credit cards allow you EMI conversion facilities wherein you can convert your big-ticket purchases to affordable EMIs. As such, if your online payment is putting a big dent in your budget or your finance, you can use your credit card for payments and opt for the EMI conversion facility. You could, then, pay for your online purchases in EMIs which would be easier on your finances.

• You can enjoy zero fraud liability

Credit cards give you protection against unauthorized use of your card by fraudsters. So, when you use your card for your online payments, if there is any fraudulent transaction, you can enjoy the facility of zero fraud liability.

• You can build up your credit score

When you use your credit card for online payments, you are using a form of credit. This creates a credit history that is needed to create a credit score. After that, if you pay your credit card bills on time, you can have a good repayment history which would also positively impact your credit score. Thus, using a credit card and then paying its bill on time has a dual positive impact on your credit score and helps in building it.

• It helps in case of a financial crunch

If there is a time-sensitive payment that you need to do, like paying for school fees, loan installment, insurance premium, etc. which needs to be done within a specified time frame and if you are running low on cash reserves, you can use your credit card to avail credit payments. When you pay using the card, you don’t necessarily pay cash at that time. You get an interest free credit period of 30 to 50 days within which you are required to make the payment of your credit card bill. This interest-free credit period helps in case of a cash crunch. You can pay for the necessary expenses within the stipulated time using your credit card and then arrange for funds to make the actual payment in your credit card bill.

Given these benefits, credit cards are the best modes for online payments.

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