8 minutes


Many banks provide cash back if customers use credit cards to pay monthly utility bills or use them to buy groceries. Online shopping portals often also have cash back offers on special products (e.g. Ibotta, Drop, Ebates, Shopkick and FlipGive).

Reward points

Credit card companies offer reward points for any purchases customers make with their cards, which cardholders can then use to purchase gifts.

EMIs (Equated Monthly Installments)

Cardholders can easily arrange to pay for their high-valued purchases, such as a TV, refrigerator or laptop through affordable monthly installments. Banks generally charge interest for conversion to EMIs.

Grace period

Customers can defer paying off purchases until their bill is due. Banks offer a grace period that is 25–55 days for paying back purchases on credit.


Credit cards are safer than debit cards: when a credit card is fraudulently used, the cardholder isn’t typically completely out of money and because the issuer generally assumes the risk.