Most people today are preferring using a credit car d to other methods of payment. Although some people overspend when using a credit card, there are numerous benefits to cardholders who use their credit cards wisely.
Using a credit card has the following benefits:
Credit cards are very convenient. If you have got a credit card, you don’t need to run to the bank to withdraw cash, write checks when you want to make a purchase or even count out change! In addition, most shopping outlets have accepted payment using credit cards making it ideal for most people. You don’t have to carry change or waste time withdrawing cash from a bank if you have a credit card. With the current advance in technology, you just need a credit card to shop online and have goods delivered to your home or get services hired.
If you are using a credit card, you can be able to budget your expenses each month if you pay your bills in full every time. When you pay your bill in full, it acts as a master receipt that has an itemized listing that shows what you spent money on that month. Some credit cards e.g. American Express usually categorizes your purchases and then sends annual or quarterly summaries of your speeding showing how you spent your money on retail, entertainment, dining etc. If you’ve set up an online account with your credit card provider, you can be able to import data into your laptop or phone in case you need to assess or use it.
If you are using a credit card, it is directly connected to your credit score making it easy for lenders to review your credit score. If you have got a high credit score, it shows that you pay your bills on time and above all you spend conservatively. Therefore, if you get into any financial crisis, you have higher chances of getting a loan because you are reliable. However, irresponsible use of credit card results in low credit scores and this makes you paying high-interest rates or fail to get a loan. If you have a good credit score and you’ve not paid your entire bill for a month, a lender can give you a break in form of a float to avoid any interest on a purchase if you don’t have any balance on your card when making the purchase. Getting float is one of the ways to avoid paying interests when buying items you had not planned to buy.
Credit cards are very secure. Even if you’ve lost your credit card or it is stolen, most credit card companies resolve theft issues very fast to help you recover your money. This is most effective if you report the theft immediately to help your card company lock your card and make any refunds if your card had already been used. To boost your security, most credit cards offer cardholders zero liability. Hence, you don’t have to pay for unauthorized purchases that are made using your card.
It is evident that credit cards have numerous benefits as discussed above. Meanwhile, ensure you read and understand Terms and Conditions of the credit card you have before you start using it.