Good Reasons to Use Credit Card
You may have a question in mind why do we use credit cards? When we have multiple payment options to deal with personal finance like cash or credit cards, they seem to stay within budget. Credit cards have a reputation for motivating older to spend money they don’t have in reality –when they get attractive offers flooding their inboxes.
But when used responsibly, a credit card is a must-have option to consider. Credit cards have proven extremely beneficial when it comes to ensuring financial wellbeing. There are many smart credit card users, and they are making money just by using their cards.
This post elaborates on some good reasons you must use credit cards.
- You Get Sign-on Bonus
As a welcome gift, you will be rewarded with bonuses for signing up—all you need to spend or raise a certain amount to get eligible for the bonus. Of course, it is an invaluable perk to have. The best thing is that you can utilize the bonus for online shopping oruse the same to repay the bill.
- Credit Cards Build History
Credit scores usually taken from the records of all your financial activity are exceptionally important if you wish to lend money in the future. The scores mainly come from the history of the transactions that reflect on the credit card balance sheet.
Unlike debit cards, be it frequent, a credit card is reported to the bureaus that look after the scores. The longer you use the card, the more you have credit history and scope to improve it even higher.
- You Get Expense Tracker
Must you be looking forward to making your expenses on a budget? If yes, then you may get surprised to know that statements for credit card bills have an in-built expense tracker. All your purchases are recorded online,along with all useful information. It includes when, where, how often, how much you spend on what.
Many companieskeep track of their spending record with them for years. These data are very useful for tax time. With the spending records of the previous year compiled in one place, you get to save a lot of time and effort.
- You Get to Transfer Balance
`In the balance transfer option, you get to move your debt from one credit card to another. In case of other debts, such as car loans or any other monthly instalment payment, they can be moved to a balance transfer credit card. Of course, you still need to pay what you owe. But switching your debt to a card that offers lower interest rates, you get to save money. A balance transfer can also consolidate debt and makes your life easier.
- Universal Acceptance
Some purchases are very difficult to make using a debit card. In case you want to book a hotel or rent a car, you can easily save a lot of time if you have a credit card. In most of the cases, hotels and rental businesses prefer accepting payments from credit cards because it gets easier to charge customers for any damage made to the property or rented car. Also, the merchants block a certain amount of money available on the credit line to ensure that they are protected from any potential charges they didn’t anticipate.
If you want to pay for any of these bills using a debit card, the merchant will ask you to put hundreds of dollars in the account. Also, while travelling abroad, merchants are reluctant to accept debit cards, even if they have got a well-known bank logo.
So, now that you are aware of the perks, it’s high time to get in touch with a reputed credit card vendor to get the most suitable credit card along with the maximum credit limit on it.