Benefits Of Using Credit Cards In India In 2024

Explained: Top 8 Benefits of using a credit card in India

Pankaj SuyalLast Seen: Apr 16, 2024 @ 8:15am 8AprUTC
Pankaj Suyal

19th March 2024 | 18 Views
Milyin » 585162 » Explained: Top 8 Benefits of using a credit card in India

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Haven’t a credit card yet ? Know the amazing benefits of using credit cards in India in 2024

Ever missed out on a dream purchase or a fantastic trip due to empty pockets? Credit cards offer a solution, providing flexibility for those unexpected must-haves, as long as you manage repayment responsibly. In the last few years, we have seen tremendous growth in credit card users in India.

What factors contribute to the rapid expansion of the credit card industry in India? In short, credit cards not only offer you convenient cashless transactions but also provide reward based benefits and flexible repayment options. The credit card system significantly improved the consumption and purchasing power.

Benefits of using credit cards in India

Benefits Of Using Credit Cards In India In 2024

Credit cards are easy to get and come with numerous benefits. Buy now & pay later approach revolutionizes the way of purchasing for an Indian consumer. Having a credit card in India provides you the following advantages:


Credit card makes your purchase easier; you don’t have to carry cash for shopping. You might argue that you can also use a debit card or ATM card, Right ? But remember, credit cards won’t ask about your bank balance, you can make purchases even if your bank balance is zero.

Buy now Pay later

What makes a credit card lucrative option is the “buy now pay later” policy. It means, whether you want to go for a trip or shopping with your partner, money is no more hindrance. You can pay later at the end of month or in 40/50 days (depending on what credit card you hold).

Reward points

How much better if you will be rewarded for spending your money! That is exactly what credit cards do. Almost every credit card company gives you reward points, cashbacks, discounts, and loyalty points for each purchase you make. Even some credit cards claim to be save upto 10,000 rupees per month (read top 3 credit cards in India)

Building credit history

I think this is the biggest benefit of using a credit card in India. You might be aware that banks and financial institutions use credit scores for loans and other services. By doing repayment on time and in a responsible manner, you can greatly improve your credit score and take the benefits offered by financial institutions.

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Interest-Free Period 

Think about a traditional way of taking a loan and paying hefty interest from day 1! But it is not the case with credit cards. Credit cards come with much longer interest-free periods that could be 18 days to 90 days depending on the card. It means you can use rewarded credits upto 90 days without paying any interest!

Joining Bonus

Who doesn’t love freebies! Depending on the card you owned, you can get joining bonus upto 10,000 (as credit). Some credit cards even offer the first free ride, first free food order, up to 30% cashback on 1st transaction, free travel, discounts, gift vouchers, etc. So, it is recommended to review the offers before you book a card.


When making online transactions, security is the primary concern for a card holder. Fortunately, credit cards are packed with it. They offer a safe method for conducting transactions, incorporating elements such as PIN authentication, EMV (Europay, MasterCard® and Visa®) chip technology, and protection against fraud with zero liability.

Recurring Payment

Ever faced late fees of utility bills and insurance premiums? No more such dues! Credit cards offer recurring payments of subscriptions, utility bills, rents, memberships, etc and the amount is automatically deducted from the credit card. This can also be done via debit card but what happens if you don’t have sufficient funds on your bank? Think over it.

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Top 3 Credit Cards In India in 2024

After getting the benefits of using credit cards in India, you might look for the best one. Though the best credit card depends on your financial goals, usability, and your spending habits overall (as comparing their features), I have listed the top 3 credit cards in India.

1. SBI Cashback Credit Card

This new SBI credit card recently became a household name among the finance industry due to its unique features. It comes with Zero joining fees and 5% cashback every time when you make an online transaction. Additionally, it also offers 1% cashback on every offline transaction.

Best for – Online shopping lovers

Unique feature – No redemption required, cashback auto credited to your account.

2. Amazon Pay ICICI Credit Card

Looking for no joining fee and no renewal fee? Then Amazon Pay ICICI Credit Card is considered as the best credit card in India! It not only offers 5% cashback on each transaction made on Amazon prime but also offers 3% cashback for non-prime members and 1% cashback for other services.

Best for – Daily Amazon shoppers

Unique feature – No joining and annual fee

3. ICICI Instant Platinum Card

Is a poor credit score restricting you from getting a credit card? Then ICICI Instant Platinum Card waiting for you. It comes with amazing features that includes zero joining and annual fee, reward points on every spending, cashback on booking movie tickets, and interestingly, you can get easy FD approval with this card.

Best for – Non salaried people

Unique feature – Very low interest rate (just 2.49% per month)

Final Verdict

Though the use of credit cards is rapidly growing in India, still people are skeptical towards credit cards. A large section of credit card users are employed whereas the common man hardly uses credit cards. This needs to be changed and can only be done via proper awareness and education. I recommend sharing this article to your loved ones and tell them the benefits of owning a credit card in India.

Pankaj SuyalLast Seen: Apr 16, 2024 @ 8:15am 8AprUTC

Pankaj Suyal



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