5 Benefits of Credit Cards You Should Know

Key Takeaways

Credit cards allow you to make purchases without carrying cash.
Many credit cards offer rewards such as cashback, points, or travel miles for every dollar spent.
Responsible use of credit cards can help build a strong credit history and improve your credit score.

04 Oct 2025 by IDFC FIRST Bank

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Whether it is everyday items or bucket list purchases, having a credit card makes it much easier to tick these off your shopping list. Apart from making it easy to make and track payments, credit cards offer a host of discounts and deals that make it almost ignorant not to use them if you can afford to have them.

Still on the fence about using credit cards?

These five reasons can help you make up your mind and apply for one.

1. Rewards, cashback, and offers

Most credit cards offer some type of reward like points, cashback, and offers on purchases made through them. Different credit cards extend reward points at different rates and expiry dates, which can eventually be redeemed for vouchers and products on your next shopping spree. Cashbacks are a great way to subsidise the costs of your purchases, and numerous banks and credit card providers offer these benefits.

For instance, IDFC FIRST Bank credit cards offer a veritable combination of rewards, cashback, and offers. Their fantastic rewards program allows you to earn accelerated reward points in the following categories:

10X on spends above INR 20,000
6X on online purchases
3X on offline purchases
10X on spends made on your birthday
Up to 50X Bonus reward points on hotel and flight bookings made on the IDFC FIRST Bank app

You can redeem these reward points at any time and they never expire. In addition, they offer convenient redemption options, including using your points on your next online transaction, redeeming them instantly at partner merchants, and redeeming them for gift cards and merchandise. In addition to 5% cashback on the first EMI transaction made on IDFC FIRST Bank credit cards, the bank also offers a variety of discounts on movie tickets, restaurants, shopping, travel, and more.

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2. Immediate use in an emergency

One of the biggest benefits of a credit card is that it lets you spend immediately, irrespective of the amount of funds in your account or the cash you have on hand. This is a handy feature, especially in case of emergency. Usually, credit cards have a certain percentage of their overall limit that can be withdrawn as cash from ATMs. These transactions, however, start accruing interest from the day of withdrawing cash as well as attract a withdrawal fee.

IDFC FIRST Bank credit cards offer interest-free cash withdrawals from ATMs for up to 45 days for a one-time cash withdrawal fee of just ₹199 + taxes.

3. Accepted worldwide

Credit cards are a sort of universal currency, accepted almost anywhere you go. And IDFC FIRST Bank credit cards are accepted everywhere in the world, and come with foreign exchange (FX) markup fees of as low as 0%, depending on your card variant.

So you don't have to worry about exchanging currency or travelling with large amounts of cash when abroad. In fact, due to the convenience of credit cards and low forex markup rates, people also prefer to use their credit card and do away with forex prepaid cards or travellers cheques. Just use your IDFC FIRST Bank credit card if needed or opt for one via our mobile banking app.

4. An alternative to cash

Credit cards are a better alternative to cash for several reasons. Firstly, they are safe; they require PINs and OTPs to be input for every purchase, making it difficult for unauthorised users to charge them. Blocking a credit card in case of theft or misplacement is a simple matter of executing it via your mobile app or a single phone call or message. Additionally, as the name suggests, credit cards allow you to buy now and pay later, as opposed to cash. And then, of course, is the matter of rewards, cashback, and offers as discussed above: spending with an IDFC FIRST Bank credit card always gives you something in return.

5. Increased purchasing power

By allowing you to spend in the present and pay in the future, credit cards expand consumers' purchasing power. They make it easier for people to make big-ticket purchases by giving them the option to pay later, and in convenient installments, if required. When used correctly, a credit card can improve your credit score, enabling you to access low-interest loans and other borrowings.

Credit cards are powerful financial tools that allow people to make the most of their spending. IDFC FIRST Bank offers four different credit cards with no joining or annual fees, welcome gift vouchers, amazing rewards, and offers programs, to help you get the most out of every rupee you spend. You can now apply for a credit card online in just a few simple steps.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirst.bank.in for latest updates.