COVID-19 pandemic has minimized the use of cash. We now either use digital wallets or cards to make payments most of the times to ensure social distancing. However, apart from contactless payment, a credit offers a host of other benefits that you leverage to save some extra cash and hedge your financial risks as well.

#1 Buy on EMI

Credit card can help you buy something on which you can't splurge your cash at that point in time. You can easily convert your purchase into EMI and pay the outstanding in easy monthly installment.

You can also avail no-cost EMI facility by eCommerce majors like Amazon and Flipkart for 3-6 months installments to save extra cash on interest.

#2 Save through the right credit card

Using the right credit card can help you save by getting cash back every time you make purchase. You can earn up to 5% cash back on purchases ranging from movies tickets, grocery bills, fuel, telephone recharge, and online food order.

Let us say if you spend around 30,000 per month then you can earn up to Rs 15,00 as cash back. That's Rs 18,000 a year.

#3 Improve your credit score

We have all defaulted on our auto, home, or personal loan in our early years. If your credit score is affected due to non-payment of loans in the past then the best way to make it better is through a credit card.

Start using a credit car, make regular purchases through it, and pay your bills on time. This will help you gradually improve the credit score.

#4 Cover emergency expenses

An unplanned trip, medical emergency, car breakdown, or any lump sum expense can mount up at any time. And taking the money out of our salary may not be feasible. Breaking an FD will make you pay penalty and taking money out of equity market takes 24 to 48 hours.

In such scenarios, you can use a credit card instantly to sail through any financial difficulty smoothly and make the payment in easy EMIs.

#5 Use reward points

Majority of credit cards offer lucrative rewards system to help you earn extra cash on your purchase. If you drive a car regularly then you can also opt for a card linked with HPCL or BPCL to earn extra reward points.

Hope these points will help you use your credit card more efficiently.