If used responsibly, credit cards can be very beneficial as they provide many benefits to their holders. Here are some credit card advantages you should know:
Rewards
A rewards credit card can help you earn points, extra miles, and even cash back on certain purchases. Some rewards credit cards offer you a welcome bonus when you reach a certain spending limit. (1)
However, you should choose the right type of rewards credit cards to get the most out of them. For example, get a travel card if you travel a lot, a cash back card if you spend more on food and entertainment, and so on. (1)
Flexibility
Unlike cash, credit cards offer cardholders more shopping options by giving them more ways to pay for their purchases: in person, online, or by phone. (2)
Credit cards come in handy, particularly when you want to buy something unexpectedly and you don’t have enough cash. (3)
Credit cards help in times of crisis
In 2020, when Covid19 pandemic hit the world, some credit card providers updated their rewards programs to cater for people’s needs at the time. (3)
Since travel was banned back then, for example, some credit card providers offered cash back on canceled airline tickets. (3)
Expenses control
credit cards enable their holders to keep track of their expenses through their monthly net banking statement. Thus, planning repayments without any delays. (4)
high security
Nowadays, almost every credit card account comes with a chip that retailers read when you want to initiate a transaction. You can also add a signature and a photo identification to verify your identity. (2)
If someone steals or gains access to your account, you can file a fraud or theft report with your bank and wait for the bank to process it to receive replacement funds, so you don’t lose all your money for good, as you would if you were robbed of cash. (2)
Global use
If you are a regular traveler, credit cards will be very beneficial for you since you won’t need to exchange currencies as often because your lender will do that for you. (2)
It’s worth noting that you’ll pay a 3% fee for each international transaction, but you can opt for accounts that offer this service for free if you make a lot of international transactions. (2)
References:
(1) Credit Card Pros And Cons | Bankrate
(2) 24 Advantages and Disadvantages of Credit Cards – Vittana.org
(3) 15+ advantages and disadvantages of credit cards | finder.com
(4) Benefits of Credit Cards: Discover Top 10 Advantages & Uses | IDFC FIRST Bank
