Credit cards have become an essential part of everyone’s life nowadays. Even though financial experts recommend against using credit cards, they have proved beneficial during emergencies. Not only do they solve the problem of not carrying cash, but they also provide extra credit. Different credit cards have various features. Every credit card provider gives additional benefits with the card. These benefits are helpful for cardholders.
Why should you use a credit card?
1. Extra Credit
The debit card allows you to use the balance in your account. However, a credit card gives you an extra amount other than your balance. It is beneficial in emergencies or when you are facing a financial crunch. You can use the credit card to meet your current financial needs and pay later at the due date. You do not need to maintain a balance in your bank account to use a credit card.
2. No Immediate Payment
You do not have to pay the amount immediately when using a credit card. Instead, the credit card is billed at the end of your billing cycle. Your spending for 30 days is billed in every cycle. Hence, it allows you some time to make the actual payments. It is beneficial when you are making large payments or in short of cash.
3. EMI Option
Most credit card companies offer the option of EMI on your credit card bills. If you purchase an expensive item, you can buy it with your credit card and pay an installment every month. Also, if your credit card bill is high and you cannot pay at the due date, you can get it converted into EMI. Hence, not only a credit card provides you with extra money and time, it enables you to pay at your convenience.
4. Rewards
Every credit card comes with some additional benefits. It may be in the form of reward points, frequent flier miles, discounts, cashback, etc. It is another reason why people prefer using credit cards for their payments. A credit card company will offer you different cards suitable for different needs. For example, some companies tie-up with online sellers and sell an exclusive credit card for that seller. Whenever you purchase from that seller, you get some discount or benefit. People who travel a lot can buy a frequent flier credit card. The miles earned on these cards can be used for purchasing air tickets, using airport facilities, etc.
5. Easy and Safe Transactions
A credit card is a way of a secured transaction. You do not need to carry any cash or maintain an account balance. The transaction can be done quickly by swiping on a card machine or entering a One-time Password online. A credit card is convenient to use and can be used everywhere.
6. Good credit Score
When you use a credit card and make timely payments, you maintain a good credit score. In addition, it helps when you want to apply for a loan. You need a good credit history and a high credit score when applying for a loan. A credit card helps you in maintaining both. Also, if you cannot pay your dues at any point in time, your previous credit history will be beneficial in convincing the credit company to give you some extra time.
7. Expenditure Tracking
The credit card statement helps you track and vouch your expenses during the month. You can go through the report to check your transactions. It also helps you in your monthly budgeting and managing your costs better.
8 Globally Accepted
Credit cards are accepted worldwide. If you are traveling to a foreign country, you do not need to carry much forex. Instead, you can use your credit card for transactions. But make sure to check with your credit card provider regarding the transaction fees, conversion rates, etc.
9. Vendor Transactions
Credit cards are a safe and secure payment gateway. It is beneficial for the vendors globally. They use offshore credit card processing for long term success. It means that they can trade anywhere globally and receive payments through credit cards. It has widened their reach and increased their customer base. It is beneficial for the customers as well. Customers can now purchase anything from anywhere with the help of their credit cards.
10. Miscellaneous Benefits
Many other additional benefits come with credit cards. Many credit companies now offer insurance coverage with credit cards. Many offers are available on e-commerce websites when purchasing using a credit card. Credit cards are a safe and contactless payment method. They offer buyer protection, protect against fraud, and offer various perks.
Conclusion
There are several benefits of using a credit card. However, it is advised to manage your credit card well to avoid problems later. You may have extra credit available at your hand but do not overspend. Use your credit card only to a level that you can pay by the due date. If you cannot pay, you may be charged late fees and interest on your payments. Credit cards are an instrument of ease, convenience, and security. If used properly, they can be an asset in emergencies or financial difficulties. However, if not used optimized, they can become a liability. So, use your credit card efficiently by taking the benefit of the perks it offers. You can reduce your expenditure by using the cashback, reward points, offers, etc., available on your credit card.
Ikram Ullah is a seasoned content writer and editor hailing from Faisalabad, Pakistan, boasting a decade of rich experience in SEO and content writing. He is particularly distinguished in the realm of technology content writing, where he excels at demystifying complex technological concepts, making them accessible and engaging for a broad audience. Throughout his career, Ikram has made significant contributions to various websites, showcasing his commitment to technological advancements and his skill in creating informative and compelling content. His portfolio includes work for littlebyties.com, republicansunited.com, and invisiblelocs.net, each reflecting his dedication and expertise in the field.