In this convenience-cautious world, not everyone can say no to credit cards. It offers crucial benefits in addition to cashless advantages. Ranging from paying installments with 0 interest rate to ease in utilizing promotions of different merchants, indeed, it makes one’s life easy and fast. However, the lack of customer knowledge about credit cards brings problems and produces ignorance of the benefits and risks of having one. How do credit cards influence our lives?
Credit cards allow you to pay in different purchase streams
Due to the pandemic, merchants are now open to establish divergent platforms for payment. It is more convenient to shop online because there is no need for you to go out and save money and time. Although some merchants ask for additional payments, it’s nothing compared to the hassle of traffic and the risk of catching the virus because of going out.
Credit cards are helpful when you love traveling and don’t want to go through the inconvenience of arranging trips. Paying tickets online is way better than waiting in the queue.
Credit cards can give you convenient payment options
You can have the ability to purchase a product without paying in full. These are very beneficial when there is an extreme need to replace things necessary for your life. For example, appliances and gadgets that you need to survive daily. Understanding the benefit of the buy now and pay later concept is a must. Credit cards are lifesavers only when used for needs and not luxury items that can get you in considerable debt.
Delaying payments can be helpful when you have other bills to prioritize paying. However, paying the balance earlier is favorable, too, when you tend to forget billing dates. Also, having self-discipline and customer awareness is very important to avoid problems occurring in the future. Always check your terms and conditions with the bank.
Credit cards provide you cashless transactions and reward points
Many credit cards give bonus points based on the category when spending for groceries, gasoline, restaurants, or accredited online shops. Upon reaching a specific number, these can now become gift coupons from the retailers.
The truth is, if you can find the perfect credit card company that fits your spending habits, you can take advantage of the perks, rewards, and discounts offered by your card(earn rewards).
Credit cards provide more security than cash
Cashless transactions are safer than carrying cash since there’s a possibility that money can be lost or stolen. There are also instances that credit cards are stolen, yet you can contact your bank to report the issue and have your credit card blocked so that it will not be available for purchase or use. Paying your bills is now easy and convenient
A credit card allows you to build your credit rating
Some customers don’t necessarily use cards because of low credit limits. However, if you would look at it from a different perspective, using credit cards despite low credit limits is beneficial when you want to gain more. Building a good credit rating is one good indication of your financial health. It shows how responsible you are in using credit. The better your rating, the bigger the chance you will be approved for increased credit limits and another credit application. Here are few tips on how to achieve a better credit score:
- Pay your minimum balance on time.
- Don’t apply for too many new credit lines but focus on your tier 1 credit cards.
- Review your credit reports to get on track.
You don’t need a $100 approval loan deposited to prepaid debit card to get a better limit.
Credit cards offer a benefit like purchase protection
These benefits protect your new purchases for a certain after you buy the item, but it varies per card issuer. Add to that, if your purchased item or product got damaged, your credit card service provider may repair the item or reimburse you for the purchase amount to a particular limit offered to you. It is wise to choose a card that provides the best purchase protection.
Credit cards give travel insurance
Lastly, you can save a lot of money as most credit cards come with travel insurance. If something goes wrong on a trip, e.g., your flight was delayed, or your luggage got lost, your credit card may offer a travel insurance that can cover the cost of unexpected expenses depending on the perks thereof.
Credit cards can be advantageous if you know how to use them responsibly. Positively, it can influence you to handle your finances better and allow you to grow in this area. You can reap many benefits if you only swipe what you can pay back on time.