Many people misunderstand the usage of credit card and think that it only increases their expenditure, but in recent years, it has become almost a necessity, offering several benefits to the users.Credit card is a plastic money used as a mode of payment, facilitating people to purchase products and services on credit, making life easy and convenient, as there is no need to carry cash at all places.Credit card is a great alternative to payment by cash and allows you to purchase service or product wherever or whenever you want and once you get the credit card, make sure that you spend within your credit limit, do not cross the credit limit allotted by the bank, change your PIN regularly, submit credit card details only through secure websites when shopping online, always scan the credit card statements for unauthorized transactions, and always check the charge slips/sales vouchers while signing them.However, not everyone is able to pay the balance at the end of the month, and this is where banks make money by charging high interest rates on the credit cards.

If you do not spend more than you have and have the discipline to pay the balance at the end of each month, you can get the credit card service for free, basically paid by the people who do not pay their balance at the end of the month.You get free reward points, free record keeping, and some cards also offer insurance if your purchase is stolen.Some credit card companies also offer extended warrantees on any purchase made on their card or extra life insurance policies.A very important benefit of credit card company is that they stand up for the good customer if he or she is being charged incorrectly.

Credit cards offer various schemes and discounts associated with travel, entertainment, shopping etc.While using the credit card, you need to make sure to follow a usage pattern that helps you strengthen your credit rating, and collect credit card rewards, rebates and many other benefits offered by credit card companies.Despite all its advantages, the credit card must be managed judiciously and cautiously so that you are able to enjoy the free credit period.To avoid the high interests on your purchase, you should pay the entire outstanding balance before the due date.