There are approximately 2.8 billion credit cards used worldwide. This figure is enough to say that credit cards are one of the most important things you can have for a financially-able life. And if you are someone who is looking for the benefits before you get one, here are a few that will convince you.
1. Convenience
Probably the biggest advantage of having a credit card is that you don’t have to carry wads of cash in your pocket everywhere you go.
Even in cases where you forget your cash, you can just take out the credit card, swipe it, and purchase whatever you want. It’s much easier and more convenient than counting the exact number of notes required, especially when you are in a big line.
Moreover, using credit cards offers various reward programs through a point-based reward system or rewards in common spending categories such as dining and gas. When these points collect up to a sizable amount, you become eligible for vouchers or gift cards.
Now, this certainly excites me to switch to cards, and you?
2. Recharges and tickets
If you like to travel more and don’t have a credit card yet, here’s a word of advice: Get it now, credit cards come of great help when it comes to buying tickets from anywhere.
Since everything is on the internet, it is a smarter option to purchase tickets online rather than spending your efforts on an agent or actually going for booking one.
Moreover, certain credit cards have frequent flier cards and travel card rewards systems, which are basically discounts you can avail of on future flights once you cover up certain miles. Certainly, a great relief for the wanderer inside you, isn’t it?
Another benefit includes recharging your phone from anywhere in the world. Imagine you are in the middle of a trek and you got lost, now you want to contact your teammates, but there is no balance. What are you going to do? I’ll tell you.
Take your credit card out, make a recharge of XYZ amount, and hit the call button. Voila! Turns out you didn’t get lost… just took a wrong turn, now go back and finish that trek and feel thankful that you had your card in your pocket.
3. Build credit history
As we grow up, our priorities change, our dreams start taking shape of reality, we start earning, buying a new house, a new card, and so on. Having that amount of money right at your disposal is a herculean task, that’s why building a good credit score is important.
It means, when you purchase your credit card and pay it back regularly without any fail, you get a certain amount of points. When it touches 725 or more, it denotes you have a good credit history which makes you eligible for any kind of loan that you wish to take.
In simple words, if you build a good credit history, you won’t have to worry about arranging finances to fulfil your wish of having a home or a car.
4. Track spending for you
Want a solid budget tracker? Then use a credit card. They have an in-built expense tracker that keeps a record of when, how much, and exactly where you have made your purchase or spent money. Some card companies keep these records for years.
This is extremely beneficial in the time of calculating tax, with one keeping a record of essential expenses made, you’ll save lots of time and effort beating your head around thinking, “where did I spend this money on?”. Trust me, you will.
5. Purchase protection
Consumer protection is one of the greatest perks of credit cards. If you make a purchase with a credit card and later find out that it’s damaged, you get the benefit of returning/exchanging it and getting the charge removed.
Additionally, you get an extended warranty on items such as electronics, furniture, home essentials, mobile phones, etc. so, make sure you don’t forget your receipts!
6. Built-in grace periods
Most credit cards have a grace period that varies from 30-50 days maximum. This helps consumers to purchase items that they necessarily don’t have the funds for at that moment. In the grace period, they can pay for that amount without any extra charges incurred, so it’s basically a win-win situation.
Over to you…
Now that you are aware of various credit card benefits, I hope you will not waste any further time and avail yourself.