Credit cards have changed our spending habits. Living a life with plastic can be fantastic. They’re already a part of our lives, and roughly 61.9 million credit cards were issued to UK residents alone. From making travel arrangements to emergency car repairs, credit cards helped us pay for these. Here are some reasons why credit cards are ideal cash-less alternatives:
No money? No problem
You need to buy something, but you don’t have enough money. With a credit card, it’s easier to make purchases at any time. You can buy food items in supermarkets, medicine in drugstores, or new sofas at online furniture stores in Singapore. Credit cards also benefit businesses because they help them increase their sales potential by offering more payment options.
Thanks to mobile technology, entrepreneurs can now process payments through their smartphones via online payments. It’s fast, secure, and minimizes the need for invoices or bills.
It’s accepted everywhere
A credit card can take you somewhere but not everywhere. It’s more convenient to book hotel accommodations, rent cars, or purchase airline tickets. Also, rental car companies and hotels can charge your account for damages incurred during your stay. It’s also interesting to note that some merchants do not accept credit card payments.
Shop and earn rewards, points, and miles
By using your credit card, you can earn reward points or frequent-flyer miles. With every $2 you spend, you earn a point or a mile. When you’ve earned enough points, you can now exchange them for gift vouchers, discount coupons, or even cashback rewards. You can use them to purchase gifts for your friends or loved ones.
Do you want to earn your next plane ticket? Your accumulated points can pay for your next vacation. Remember that credit card companies have different reward structures. Contact them directly and talk to their representatives to learn more about their incentive programs.
Helps build your credit score and rating
A good credit score is important when applying for a loan or a new job. Some employers check their potential employee’s credit history. The first step in building a good credit rating is using your credit card wisely. Pay your bills on time and avoid late charges. Late payments will affect your credit score. You want to get a good rate on a car or home loan, right?
Offers insurance and purchase protection
Insurance premiums can be used to extend a manufacturer’s warranty on a brand-new LED TV, gaming console, or laptop computer. Aside from warranties, you can hold payment for faulty, stolen, or damaged goods. Other credit card companies offer travel and car rental insurance to their clients. These premiums are just some of the benefits available for cardholders.
Protection against fraudulent activities
Filing fraud reports can be stressful and taxing, especially if you’re using a credit card. It might take a while for your bank to complete their investigation, and this can leave you penniless. With credit cards, report the discrepancy, don’t pay for the transactions, and wait for the company to fix the issue. Credit cards are secure and can protect you against fraud.
Credit cards are prone to misuse, and they should be used properly. Use yours wisely, exercise discipline, and be responsible for your purchases. Avoid using it for cash advances—you might end up paying higher interest rates. Examine your bills, watch out for suspicious activities and report them immediately.