Whether the 3inch by 2inch piece of plastic card turns out to be friend or foe depends on your usage. Personal finance experts are spending a lot of time and energy to prevent people from using credit cards.
There are many wooing stories that left people in debts but on the contrary when you use it in an organized manner, and credits cards are seriously good.
Reasons Why Credit Cards Are Really Useful
Perhaps, every adult should have a credit card to meet emergencies, establish credit scores, security reasons and avail a multitude of benefits. Let us see how credit cards can turn into a valuable asset for you.
Credit card bonus offers a quick way to earn hundreds of dollars’ worth of rewards. However, you cannot find the offers all the time. So, you need to have a close watch to avail the attractive offers and bonuses.
Most bonuses come with travel credit cards which typically includes airline and hotel related cards. A few examples of the best travel cards with attractive bonus can be discussed here
- With Chase Sapphire reserve cards, you can earn a 50K bonus for your purchases 4000$ and above in first three months. With these points, you can redeem travel rewards worth 750 dollars.
- When it comes to American Express, Platinum card, you can earn up to 60,000 membership points for purchases 5000$ and above.
In addition to the premium travel cards and general travel cards, there are also cash back credit cards which offers cash bonus and rewards.
Build Credit History
Virtually every American has a credit profile associated with them. Credit history basically contains information on your bank accounts, past borrowing and payment history.
When you are at default or making late payments to your bills, it will certainly affect your credit history. Banks and financial institutions offer loans to the borrowers only on the basis of your creditworthiness. Higher the credit scores, better are the chances of getting loans at a competitive interest rate. Perhaps this could save you thousands of dollars on your loan amount.
Apparently, building your credit history is not a great deal. Making small transactions and doing payments on time is a great way to establish a credit history.
Safe And Secured
With credit cards, you can have more purchases and fraud protections than any other form of transaction. Generally, banks or credit card issuers don’t charge interest for any purchases until after the due date of the month’s statement.
In a nutshell, if you are spending credit card only for the finance you own and pay off the charges before the due date, then you will never pay a penny as interest to your amount owed. However, it is very important to use your credit cards safely.
There are fraudsters everywhere, who want to make their living with other’s hard earned money. So, when you follow a few guidelines, you can probably avoid credit card theft and identity theft. What are they?
- Always advisable to make your purchases only on the known websites and the sites you trust.
- Public computers and networks are not a safe option to make transactions because it is easy to steal your personal information when you make a transaction from public networks. Try to avoid such options.
- Having your computers protected against virus and malware is important to protect your credential from hackers.
- Avoid using credit cards on sites which has poor customer service records.
- Provide information about your credit card only after checking the website security. This can be done by checking the URL.
Convenience And Quick Access To Cash
Credit cards offer the complete convenience of accessing money when compared to cash. The ability to just swipe a card is more comfortable than constantly running to the ATM or having the count to the exact amount, which is quite cumbersome.
Credit cards apparently give instant access for your major purchases. Perhaps, for emergencies, they are potentially helpful. Many people have positive personal experiences of having a credit card to handle emergency situations.
Short Term Loans
When you need to borrow, you can consider credit card options for short term loans that can be paid off in a few months.
One of the major advantages of credit cards are, they usually have a grace period after your payment is due. The grace period is usually up to several weeks within which you can earn the interest on purchases.
Although it is not a big number, yet over a period of time, you can actually earn decent money with this. However, this is not made possible either by cash or debit cards.
Credit cards are best enjoyed when you use it with proper discipline.
If you are confident that you are more organized with a credit card, then you can shift all your purchases from debit or cash to credit cards to build a great credit history.
Moreover, you can enjoy as many rewards and bonuses, when you use it with the right sense.