Almost 70% of Americans use credit card instead of cash. This impressive figure shows that using credit cards has many advantages to be so popular.
If you do not have any credit card, then maybe you should get at least one. Let’s see what makes credit cards so attractive and whether you need to get one.
First of all, it’s just convenient!
When using a credit card, you don’t need to carry wads of cash with you to be afraid of loosing them or being robbed. You do not need to constantly contact with dirty cash, you do not need to go to the bank all the time to withdraw money from your account. Using the card you can do it anywhere through an extensive ATM network. The card takes up a minimum of space in your wallet or pocket; money is always with you.
Your credit card issuer is more likely to open a certain credit line for you, within which you can make purchases when your own funds are not enough. And it can be completely free, if you will be in time to compensate the money spent.
Many cards offer a certain period during which the use of credit funds does not entail interest payments. Check with your lender and read carefully the agreement about the interest rate and the period of free use of the credit line are indicated.
Your protection when buying goods
If you bought a poor-quality or damaged product, then you can always return it or dispute the purchase when paying it with credit card instead of cash. In the case of cash, it will be extremely difficult for you to do this, especially when you lost the receipt for payment of goods.
This will be most important when buying expensive goods. Your creditor will be on your side in cases of disputable situations and will be able to confirm that you made a purchase at a specific place and time.
Rewards for use
By simply using the card to pay for your everyday purchases you can earn certain rewards provided by the issuer of your card for using it in certain conditions. Many credit companies provide similar reward programs.
Often such rewards come in the form of a cashback, which can reach 5% for the purchase of certain categories of goods or stores where you made purchases. You can spend the returned points or money either on other purchases, or receive discounts, or take them in the form of a gift card.
Card registration fees
Some credit card issuers offer customers rewards for registering their card, or for each new user you bring to them. Also, by spending a certain amount from the card, you can be rewarded with additional bonuses and opportunities of your card.
After receiving a reward you can close such a card, but this may adversely affect your credit. If you do decide to close it, then be attentive to the various fees. If there is no fee for the annual maintenance of such a card, then it is worth leaving it to improve the status of your credit rating.
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If you often travel then you knows how often tourists become the objects of attention of pickpockets. If your money is in cash with you, you are at great risk of losing all your money.
A credit card protects you against this situation. If a credit card is stolen from you, then you can simply call and block it, and this should be done as soon as possible after you discover it will be lost.
In addition to theft, you can lose your money while traveling at the exchange rate. If you use credit card instead of cash, the issuer will exchange at the most favorable exchange rate, which is available in the country where you are located.
In most cases, when renting a car, having a credit card is a prerequisite for providing you with a car. Many credit card companies offer you additional insurance when using their card in a car rental.
Before renting a car check your credit card and make sure that it covers your responsibility for the car and which part of it.
More travel benefits
Not only security attracts travelers to credit cards. Many credit cards offer additional benefits when traveling, such as various types of emergency assistance, additional baggage insurance or no payment for it, free seats in the lounge areas of the airport and many others. Check with your card issuer for additional travel bonuses.
Some credit companies offer extended guarantees for the goods of electronics and home appliances you purchase. You can use this advantage to increase coverage with a larger range of warranty for the seller and manufacturer.
In order to manage your finances, it is important to understand where and how much money you spend. By using credit cards to make purchases you can easily get information about your expenses in order to analyze it.
Also, it will be easy for you to determine the tax deductions you are entitled to. You will not need to collect all receipts that can easily be lost and not get full information. All information about your expenses will be in one place, moreover, in electronic form.
Want to get a credit card?
Now you have an idea of why you need to use credit cards and what advantages you will get. Probably, now you want to get a credit card to be able to enjoy all its advantages.
On our site you can fill out an application for a credit card and receive offers simultaneously from many lenders. If you have any questions you can find answers to them in our blog or write to us. Our experts will contact you and help you in all matters.