A credit card can be defined as a payment card given to users which permits the cardholder to pay a seller for goods and services with the intention of paying the card issuer at a later date. However, if you are a frugal spender who pays his or her card balance off in its entirety each month, you will enjoy the fantastic benefits of owning credit cards.
When you did not default in your payment to your card issuer, there are several advantages of possessing your credit card which will be explained in this article. Despite the news making round about the disadvantages of having credit cards, you can own a credit card and meet your financial goals if you are a disciplined person who knows how to manage his or her expenses.
Here are some of the credit card bonuses:
Most credit cards have amazing reward programs that are beneficial to their cardholders. Individuals who hold cards gain points when they purchase different items in grocery stores, shopping malls, book flights and other terminals. These earned points can be spent on buying of products and services from various vendors.
If you are a heavy spender, these points acquired through the reward programs can be used to pay for the yearly fee if your card issuer charges such.
Some credit cards are cash-back cards which help you money based on your monthly expenditures. These credit cards have cash-back rates which are normally within the range of 1% and 5%. Each time you buy an item, you are offered a cash-back percent of the value of your purchase.
Most credit cards have amazing bonuses which include travel insurance, purchase protection insurance, rental car insurance, and extended warranty insurance. Having a credit card that has travel insurance gives the cardholder flexibility to move anywhere, it also save cash for the holder and offer comfort.
The cases of fraudulent activities on the internet have been reported more often in recent times, having credit cards issued by reputable card companies is an excellent idea. Most credit card companies have installed technology on their cards that provides protection against fraud and help you secure your hard-earned cash from malicious purchases from online thieves.
For example, most Visa credit cards have a special feature that helps the credit card companies check your account for fraudulent procurement. Having this type of credit card will provide security as you will be notified by your company when there is a suspicious purchase with your card.
SAFE ONLINE EXPERIENCE
Credit cards can be used for shopping at physical shops as well as online transactions. These cards are laced with unique security features that protect your funds when you buy online. You can shop on various online shops with peace of mind that your money is safe as your credit card has extra security layers.
AVAILABLE IN ANY CURRENCY
One of the advantages of owning a credit card is that it can be used in another country for transaction purposes. When you are traveling to another country, you can make use of your credit card to buy goods, and you will be required to pay a currency conversion charge to the card issuer. For example, credit cards can be used to make hotel bookings and pay for groceries when you shop abroad.
BUILDING OF CREDIT STORE
Owning a credit card plays a significant role in the building of your credit history and also offers you a favourable credit rating. When you have an excellent credit score, applying for loans will be easier for you as you will get easy access to a car and home loans. Paying off your loans promptly will help you to develop a good credit score.