Getting Creative With Finances Advice

Benefits of Credit Cards

At this day and time, credit cards have become a much-needed convenience. Purchasing gas, groceries among other goods and services has been made easier by credit cards. Purchasing other items that require funds that may not be at one’s disposal is also possible with credit cards. One can’t ignore the controversy that faces the use of credit cards. You may be left with debts you can’t clear off and accruing interest if you don’t use credit cards responsibly. It’s important that you use your credit card responsibly. You can buy items that you are in dire need of as credit cards, unlike debit cards don’t have a minimum. Remember that a credit card is a short-term loan extended to you. As a middle-income earner, you may not necessarily find a credit card to be very much beneficial. That is however not the case. There are benefits that you accrue from using a credit card and they will be discussed in this article.

It is very beneficial to have a good credit score. You will be able to build a positive credit history with a credit card and in turn have a good credit score. Charging small amounts and paying them off on time is a great way to establish a credit history. Your creditworthiness is given by your credit score. You can’t get a loan without a credit history. Credit cards help you build an impressive credit history. This will come in handy later in case you will be in need of a mortgage loan. A good credit history will not only increase your approval chances but you’ll also be able to reduce the rate charged on your interest.

You get rewards like cash back with credit cards. A percentage of selected purchases is refunded or a percentage of all your purchases is refunded with cash backs. It’s important that you are careful as you may end up spending a lot of money from being tempted by these rewards. Responsible use of credit cards is important as stated earlier. The rewards offered by credit cards earn you a lot of money. Discounts, gift cards are also offered by credit cards. There are also sign up bonuses offered by credit cards. With a good credit score, you can get approved for a credit card that offers sign up bonuses. Sign up bonuses are in terms of either cash bonuses or a large number of reward points.

If your credit card is stolen you won’t incur losses unlike with credit cards. Loss from fraud is avoided with credit cards. You need to notify your credit card company when your card is stolen. Other modes of payment don’t offer the safety offered by credit cards. You’ll get these benefits from the use of a credit card.

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