There are Credit Cards from various companies that come with a lot of amazing offers to help you save some money while shopping. The Cards have lucrative deals bundled with them.

There is a fairly common belief that Credit Cards cause debt traps for users. However, this belief is largely untrue. While some people with Credit Cards do get caught up in debt traps, it has more to do with their improper spending habits than anything else. It seems easy to waive off improper spending habits and poorly planned finances by pinning it on Credit Cards, but what this does is chip away at the various benefits Credit Cards have to offer. Here we’ll explore two such topics:

Benefits of Having a Credit Card

• Offers and cashback: While they may seem like great ways to lure in more customers, the Credit Card offers and cashback actually helps save a great deal of money. The best Credit Cards have tie-ups with certain stores, companies, airlines, etc. These tie-ups mean greater rewards for you every time you shop at those stores, take a cab from that company or fly with a particular airline. While we are talking about flying, remember the complimentary airport lounge access you get with many cards.
• Easy borrowing and repayment: Credit Cards make borrowing and repaying money a breeze. What would originally have required paperwork and a whole lot of processing, now happens instantly? You have a standing credit limit that you can avail any time you need to meet any expenses. It has made repayment simpler by allowing one to split payments up into Equated Monthly Instalments (EMIs), and thereby split the financial burden of a purchase over the course of a few months.
• Building creditworthiness: Credit scores, based on credit rating systems, decide the creditworthiness of an individual. If one’s creditworthiness is low, the amount of credit sanctioned to them is also low and the interest charged is sometimes slightly higher. With a high credit score, one can avail of a decent amount of money as a loan at relatively low-interest rates. Credit Cards, if used correctly, can help build and boost credit scores, enabling you to borrow larger amounts at lower interest rates in a time of need.

How to avoid falling into a debt trap? Debt traps crop up when individuals are unable to repay amounts for the loans they take. The inability to repay is caused by a few different factors, some of which are:

• Not being careful with your expenditure: To effectively manage Credit Card, one needs to know how much they can spend. Their monthly Credit Card limit can even be twice their salary, but just because one’s card has a high limit doesn’t mean one has to use every last bit of it.
• Irresponsible use of multiple cards: While having multiple cards can prove beneficial in terms of various numbers of offers and benefits, it also can be slightly burdensome to repay not one but two Credit Card bills.
• Avoid defaulting on Credit Card payments: If you miss your Credit Card payments, you would be required to pay a late fee the next time you make payment. Thus, defaulting on your payments only serves to increase your financial burden.

So, if one avoids making the above errors, they should be clear and know for sure that Credit Cards do not cause debt traps. If you are looking to get some of the Credit Cards with some great Credit Card offers like Everyday Delights, dining offers, and travel-related offers, then ICICI Bank has some great Credit Cards for you!