Credit cards are not just used to pay off major purchases. You might feel silly having a credit card for a small purchase, but there are benefits in a transaction! Why else are organizations putting credit card slots available on drink machines?. There are a lot of benefits to credit cards. You should be using your credit card for everything–and here are ten good reasons for which you should always use credit cards.
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- It helps in building your credit rating: Credit History helps you in developing your CIBIL score. The CIBIL score further helps you in getting you bank loans, finances etc. Those who do not have good credit ratings face a lot of problems in getting student loans, home loans, business loans etc.
- Refund of Dispute Charges: While using debit cards, if there is any dispute, you can not do anything as the price is already deducted from your bank account. While in the case of credit cards, you have a chance of filing the dispute case and can get refunds in a maximum number of cases.
- Extended Warranties on Purchases: While making online purchases, or shopping from retail chains, there is a possibility that you get better deals on your purchases in terms of prices, complimentary products, extended warranties etc. There are several reasons behind this process like either the credit card company is partnering with a retail chain or the products you are buying from the retail chain to promote the use of cards.
- Extra Rewards and Benefits: Many credit cards offer rewards for example cash back, airline kilometres, discounts, rebates, gift cards, and many more. Most of the rewards are designed to get people hooked in to using the cards or sending longer than they would otherwise, however, used correctly, rewards points may earn you a lot of funds. A few credit cards offer a signup bonus of several hundred dollars — just for opening an account and fulfilling a minimum spending requirement.
- Short Term Loans on Credit Cards: Credit cards normally have a grace period, after which your payment is not due. This is sometimes a few weeks, which lets you earn interest on purchases you have made. Although this might not be considered a huge price for a hundred dollars, if you charge one thousand dollars monthly and then add it up over the course of a calendar year, it is possible to actually earn some decent money with this. With a debit or cash cards, the money will be instantly removed from your account and you do not earn any interest in it.
- Protection Against Frauds: If your card has been lost or stolen, you’re only responsible for that first $50 in unauthorized charges. Fraud protection for debit is similar, but only if you notify your financial institution within two weeks. If you wait for more than two days, you can be liable for up to $500 on your own debit accounts. Fraud and theft security is non-existent for money.
- Reserve Funds source: Anything that is misused puts the user in trouble. If you use a credit card properly, It will prove as a boon for you. If you are using a credit card for limited purposes, you can always use credit cards in an emergency. It will always be utilised as an emergency funds source for you.
- Universal Payment options: Most of the companies, service-based companies or some foreign com portals allow the use of credit cards only. They do not permit the use of debit cards. If you are a student and want to download a project from Scribd, slide share etc. You need a credit card as they never allow the use of debit cards. Along with that. There are many subscription services that ask for credit cards only.
- Secure and Fast: The most troublesome thing we feel mostly is carrying huge chunks of cash everywhere. Suppose you are going overseas and you are out of cash, the one thing that will definitely safeguard from any mishap is your credit card. With the use of a credit card, you do not need to carry a huge stash of money to any place. You can swipe your credit card as per your requirement. A credit card makes your transactions and purchases more safe and secure as per traditional methods.
- Budgeting Tools: Credit card companies also provide budgeting tools that can help you to track your expenses, money expense patterns and much more. It will help you to develop money management strategies if used wisely
Final Words: Everything comes with some pros and cons, if you are using a credit card wisely and use whenever required will definitely give you a lot of benefits, while those who misuse credit cards landed up in big trouble always as they always remain in debt and busy in paying instalments and interests over their debts.
