It’s Awesome to Have a Credit Card Handy All the Time

Having cash is great, but having a credit card is awesome. Through the credit card, you will feel financially secured. You can use it for shopping, paying bills, and many more without the fear of being taken advantaged or risked. The credit card companies today are good when it comes to detecting fraud transactions and preventing them. In today’s world, it is a must that you always have a credit card in your wallet.

Check out the following about credit card use advantages:

1. Spreading purchases out

With a credit card you’ll be able to spread out the cost of a large purchase, such as a home appliance, over several monthly payments. This can be useful for emergency situations where you might struggle to pay immediately for something you need.

2. Cash advances

You can get money when you need it. Be aware that cash advances often have a higher interest rate, so it’s important that you have a realistic plan to pay back those advances.  

3. Signup bonuses

Many credit cards offer attractive bonuses that reward you for signing up with them, such as large amounts of bonus points, complimentary flights, low or nonexistent fees and other long-term perks, such as promotional and reduced interest rates.

However, not all cards with a signup bonus are good value, so you need to have a close look at the terms and conditions before applying. Chances are, there will be certain requirements that need to be met, such a minimum expenditure in the first few months. If these requirements are in line with your spending habits, then a credit card with a signup bonus can be excellent value.

You can read the article below to see what high-rated credit cards are currently offering signup deals, or you can look directly in the table below.

4. Trackability

The electronic record keeping that comes with credit cards make it easy to track your spending and identify fraud.

5. A credit card is safer than carrying cash

While there’s only a small chance of having lost or stolen cash returned, a credit card can quickly be cancelled if you lose your wallet. Most financial institutions also have security processes in place to protect you if your card has been lost or stolen or if you suspect your account has been used for a fraudulent transaction. If you’re in any of these situations, make sure to contact your bank to report the issue as soon as possible.

6. Building a Credit Line 

Having a good credit history is often important, not only when applying for credit cards, but also when applying for things such as loans, rental applications, or even some jobs. Having a credit card and using it wisely (making payments on time and in full each month) will help you build a good credit history.

7. Grace Period

When you make a debit card purchase, your money is gone right away. When you make a credit card purchase, your money remains in your checking account until you pay your credit card bill.

8. Making Large Purchases

By making large purchases like buying holidays or white goods is much easier when you have a credit card.

Given the expenses of daily life, it is often hard to constantly put enough money aside to be able to make expensive purchases using cash. A credit card allows you to do so and then to pay for what you buy retrospectively.

One of the best things about credit cards is that it is essentially up to you how much you want to pay back each month.

The less of your balance you pay off, the more you’ll have to pay in the future due to interest but if you budget carefully, then you can afford to pay less one month and more the next, balancing out your overall payments.

9. Cash back

Many banks offer cash back opportunities if you use your card to pay monthly bills (electricity) or for grocery purchases. Besides, online shopping portals too have cash back offers on various products.

10. Emergencies and unexpected expenses

One distinct advantage of having a credit card is its usefulness in times of emergencies. Once, I had to rush my secretary to the hospital because she was having symptoms of a heart attack. Fortunately, it was only GERD. But the series of tests done on her, as well as the use of the emergency room and its facility, amounted to P7,000 ($155). I only had P2,000 ($44) cash at that time, and so I had to use my credit card in settling the bill.

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