Today, almost all the banks are offering credit cards with zero charges. This is because the world today is so fast and competitive that for the banks to survive, they have to provide you double the value of what they charge (if not more!).
The process to avail a credit card has become so simple and straightforward. Further, there is a range of choices to suit every lifestyle and spending preference.
However, many of us abuse credit cards and end up in debt but that’s only because of your poor financial decisions. Otherwise, the number of benefits a credit card has to offer you is immense. Some of them are…
Credit cards allow you to spend money without carrying large amounts of cash with you. You are only responsible for just one piece of plastic, which can easily fit in your wallet or purse.
To make the process even more convenient, you can link your card to your digital wallet, allowing you to scan and pay almost anywhere. You also can purchase items now and pay for them later, giving you time to collect the funds if you don’t already have them.
Using a credit card makes it easier to prevent losses from fraud. When someone fraudulently uses your credit card, you don’t lose any money. Instead, you just have to inform your credit card company and don’t pay for the transactions you didn’t make while the company investigates.
If you want to file a claim, you can use the card statement to back it up. Credit cards also provide additional security by insurance for card purchases that are damaged, lost, or stolen.
- Recurring Payments
You can set up your credit card to make recurring payments like your phone or electricity bills. Make a standing instruction on your credit card to charge these bills directly, and you won’t have to keep track of multiple invoices and payment dates. There will be no more penalties or disconnection if you fail to pay your bills.
Bill collection is one of the most cumbersome processes for any business. That’s why they provide special discounts to customers who pay using automated payment methods, as it makes their job easier.
- Track your expenses
A credit card keeps track of every purchase made with the card. You can review your transactions by logging into your online credit card account. This can be used to determine your spending and purchases, which can be helpful when creating a budget or filing taxes.
Lenders also provide instant alerts when you swipe your card, specifying the available credit amount. Some credit card companies also provide exhaustive spending reports that categorize your purchases and show you where you spend the most.
- Discounts, Cashbacks & Rewards
The concept of cashback for using credit cards has developed and matured over the years. Some credit cards offer 2%, 3%, or even 6% cashback on specific purchases. Also, you can get discounts on a myriad of products and services for using certain credit cards.
Now, credit card companies allow users to earn a specific amount of points for every dollar spent. When a certain threshold of these points is met, they can be redeemed for gift cards from retailers and restaurants or merchandise items. The rewards options are nearly limitless.
- Improved credit score
Most people are unaware of the fact that using a credit card helps build your credit score. So, responsibly using a credit card will help because credit card companies report your payment activity to credit bureaus.
Using a credit card and repaying the money on time improves your credit score. With a good credit score, you will be able to obtain loans and credit cards more quickly in the future. Even if you must deposit money to obtain a secured credit card, doing so can help you in the longer run.
Over to you…
For its ease of usage and convenient pay-back options, credit cards have become an indispensable part of our lives.
Credit cards offer a range of discounts, deals, and rewards unrivaled by any other financial product. If you don’t have access to plastic credit, this article should convince you to apply for a credit card.
However, it can quickly become a debt trap if not used correctly or if you spend more than you can repay when the bill arrives.