Many are wary about using credit cards, especially since there are many reasons why it can ruin your life. However, these credit cards were made for a reason. Well, eight reasons, at least. If you are one of the few that can manage the use of their credit cards well, here are eight great reasons you should stick to using them:
Credit Cards Build Credit History
Credit cards are actually the most common form of credit that helps you build a credit history. Yes, it is necessary for you to actually have a good credit score to be approved for a credit card but you can start out with store cards, since those are easier to be approved for. Those monthly payments you make on your credit cards have an impact on your credit report so if you pay on time every time, then you are able to build a good credit history.
Credit Card Rewards
Who doesn’t love rewards? We all do. And because there are so many credit card companies out there, they compete with each other by providing reward points to their customers. Whether you are earning points, miles or cash backs, these rewards are irresistible and quite useful too.
We all know it’s not safe to carry a lot of cash, and credit cards certainly make our lives easier and safer. No matter how much you have to spend at the supermarket or at your favorite restaurant, credit cards are quick and easy to use.
With credit cards, you don’t have to always make sure you have cash in your wallet. You don’t have to go to the ATM before you go to the coffee shop or count your change at the counter. Swiping is easy and convenient for you and for the people behind you waiting their turn.
Anywhere you go around the planet, you can rest assured that your international credit card will be accepted. This reason even magnifies the convenience and the safety provided by using credit cards. There’s no more hassle of finding a currency exchange shop or filling out bank forms to get some cash wire transferred from home.
Most credit card companies offer insurance. This insurance often covers things like your purchases, fraud, disputes or even returns. Things are just easier to keep track of and manage when purchases are made with credit cards. You have the option to take advantage of payment protection plans, disability benefits and whatever else your credit card company offers in terms of getting you covered.
Your credit card may also offer you travel insurance and car insurance on rental vehicles, so always double check before you book your next trip.
Credit card statements follow a cycle wherein you get to spend some money by using your credit card and have the option to pay it in full at the end of your billing cycle or at least pay the minimum required. Either way, you have a grace period to come up with the funds. So if you are running low on cash and you have some important purchases to make, credit cards are very useful to have.
Credit card companies have protection plans that cover extended warranties. Not all credit cards offer this perk but it’s best to check with the store before you buy something. Some stores offer an extended warranty if you use a certain credit card. Some credit cards automatically provide extended warranties for your purchases.
Take advantage of what you can get from your credit card by knowing everything there is to know. Sometimes, it pays to read the fine print because you will actually learn quite a lot of things from there.