(and not abuse them)
Here are some reasons why you should get credit cards. They are a financial tool that has become highly popular in the modern world. There are many advantages that are associated with the use of credit cards, starting from using your credit cards for bad credit and improving the scenario. Even help build your credit score, or most importantly, conveniently transact for services and products and get monetary help during emergencies. However, these only list down a few of the perks that using a credit card provides you, and there are many more that can be mentioned. This article aims to shed some light on this topic.
Advantages associated with the use of credit cards
Some of the advantages of using a credit card are as follows:
- Cash back- Cash back is a major incentive that you receive from the use of credit cards. While this trend was started in the US by the company Discover, which provided cash back of 1% on the balance that you had irrespective of the item that you bought or the place that you bought it from. This concept has evolved over the ages to give rise to cash back systems that are higher and even go as high as 6% on certain credit cards.
- Bonuses for signing up- Bonuses while signing up for a credit card is another great incentive that owning a credit card offers to you. Signup bonuses between the amounts of $50-$500 or maybe even more for certain cases for individuals with a stellar credit score is provided by certain credit card companies for signing up for their credit cards. Other benefits may include the awarding of reward points which can be redeemed for a variety of different things.
And also, these advantages
- Reward points- Credit card companies offer rewards to their users in the form of points and these can be redeemed upon reaching a particular threshold. The reward points are awarded on the basis of every dollar that is spent from your credit card, or spending that is done for certain categories or partner companies. These reward points can be later redeemed for a variety of different choices which include flight tickets, gift cards, restaurant coupons, vouchers for shopping online etc.
- Safety- Using a credit card provides you immense safety from issues of fraudulence. In the case of you paying from your debit card, your card might get stolen and actual money from your account might get fraudulently withdrawn or spent. This will make you suffer real loss of money and the time taken for these transactions to get reversed and your money credited back to your account might be long. However, in the case of a credit card if such a situation takes place, all that you need to do is inform the bank and sit back while the bank investigates and resolves the issue and you restrict yourself from paying for the amount that you haven’t spent. No real money gets lost and your account doesn’t suffer from charges of insufficient balance.