Thanks to the many credit card benefits, an increasing number of individuals are now preferring to use one to purchase their favourite products and services. Credit cards can make your purchases a lot more convenient and rewarding. This makes them one of the most useful financial tools out there. Wondering what the various advantages of a credit card are? Here’s a quick look at 10 of them.
One of the many credit card advantages is that you can use it to purchase products and services right away and pay for them at a later point in time. This can be very useful during emergency situations, where you don’t have the funds required to make a purchase. Also, you can use a credit card to make big ticket purchases through affordable instalments, which you otherwise would not have been able to afford.
When it comes to large purchases, using credit cards is so much more convenient than paying with cash. You can also use credit cards for your online or in-store shopping to make purchases instantly and pay for them later. And by facilitating digital transactions for various regular spends like your utility bills and other expenses, credit cards make payments highly convenient for everybody.
This is another one of the many credit card benefits. Considering the fact that almost all kinds of stores have started to accept credit cards these days, making purchases using one is the right way to go. That’s not all. If you’re a frequent traveller, you don’t have to worry about currency exchanges at all. Instead, you can simply use your credit card to pay for products and services worldwide.
Of late, almost all credit cards are offered with insurance coverage. However, the amount and type of coverage may vary depending on the card that you opt for. In addition to providing you with insurance coverage for frauds and misuse, many credit cards also come with personal accident insurance and travel insurance. This makes them the best financial tool to have in one’s repertoire.
Among the many credit card advantages, this is by far the most appealing. Credit cards offer a host of rewards, discounts, and cashbacks for spending. However, the kind of rewards that you’re eligible for is dependent on the type of card you possess. For instance, cashback credit cards provide a percentage of your spending back to you, allowing you to reduce your credit card liability. Similarly, travel credit cards allow you to accumulate air miles on certain spends, which can be redeemed later for free air tickets or discounts on air fares.
It is not always practical or possible to carry cash at all times. Also, carrying large amounts of cash is not safe too since you may end up losing it or becoming a victim of theft. However, you can quickly disable your credit card if you find that you’ve lost it, which would prevent it from being misused.
One of the numerous credit card benefits is that it can help you create credit history and increase your score. As you continue to use your credit card, don’t overuse it, and pay its bills on time, you get to build credit history and improve your credit score.
Using a credit card to make recurring payments like utility bills or phone bills can be extremely beneficial. You can set standing instructions for such recurring bills to ensure that you make bill payments on time without any untoward delays. Once you’ve set a standing instruction, the bill amount is automatically debited from your credit card on the specified date. This way, you won’t run the risk of forgetting to make payments on time.
You won’t have to pay any charges or fees for using the card apart from the annual fees as long as you pay your credit card bills in full on or before the due date. Most credit cards even waive off the annual fees upon reaching a certain spending milestone, making them completely free to use.
This is one of the most overlooked credit card benefits. At the end of every billing cycle, you receive a credit card statement detailing all of the purchases you’ve made in the past month. In addition to this, you also receive an alert each time you use your card to pay for a product or service. This allows you to keep a close watch on your expenses, which is not possible in the case of cash.
Although a credit card comes with advantages and disadvantages, its benefits often far outweigh their drawbacks. When used responsibly, credit cards help you navigate tough financial situations and build your credit score up.
The only thing that you would need to do is refrain from using your credit card till you exhaust the credit limit and pay all your bills on time before the due date. This will ensure that you continue to reap all the credit card advantages without getting to experience any of its drawbacks.
A credit card has both advantages and disadvantages. As long as you use your card responsibly and pay your dues in full before the stipulated due date, they can help keep your finances in order. On the other hand, irresponsible usage and non payment of dues can ultimately lead to your finances getting hurt. To put it simply, a credit card isn’t inherently good or bad. It all depends on how you use it.