The credit card still has a lot of fears associated with it, in some cases, with good reason. However, if used correctly it can be your best friend, especially when those unplanned problems start poking their heads. With responsibility and good discipline, you can stop being scared of that little plastic card and actually use it to get the life you want.
Because we love to help, here are 5 reasons why you should be using your credit card more often:
- Safety: When it comes to security, credit cards are number 1. In addition to preventing you from walking around with pockets full of cash, they also offer a plethora of options, such as insurance against fraud and loss and/or theft of your money.
- Purchasing Power: You don’t always have the money in hand when you get a chance to buy that thing you really want. In comes the credit card which allows you to get what you want and gives you a little extra time to get organized and pay for that item afterward. In fact, credit cards usually give customers a relief period of up to 40 days before interest begins to be charged.
- You can “win” while you spend: Credit cards can offer you a variety of points and mileage programs, travel insurance, partnerships with stores and service providers and a host of other incentives. On the topic of points, you can exchange these for air travel, tour packages, movie tickets, clothes, cell phone recharge, electronics, household utensils and discounts on your card annual fee.
- Cashback: Cashback campaigns are those that give you back some of the money you spend on your credit card. If you are planning on making a large purchase, using the credit card can give you advantages in that, in the following month a portion of the expense returns to your account. Of course, this type of campaign doesn’t happen every day, but for occasional purchases, this can be a very profitable strategy. After all, any money that comes back is a win.
- To cut costs: In some banks, credit card membership exempts you from the cost of maintaining your current account. In these cases, in addition to the normal reasons for having a credit card, you also have the advantage of savings. However, it is always best to keep an eye on the small print. Some banks impose an obligatory use of the credit card to proceed with the exemption of costs.