Benefits of Using Credit Cards

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A credit card allows cardholder to borrow fund from issuer with which he makes payment for goods and services, may it for a small burger or a world tour. The amount so borrowed from the issuer is required to be repaid within specified time period with some financial charges if applicable.

Why should you use Credit Cards?

1. Signup Bonus: It is an invaluable perk, as an introductory offer many credit card issuer grant a certain amount of money which is to be spend within a defined time frame.

2. Cashback Points: If you spend cash at supermarket what do you expect to receive in return? Thank you or a smile from the cashier? Sometimes we receive neither of it but when payment is made through credit card, subscriber can earn some money back on their expenses. The cash rewards offered is generally a percentage of your total purchase. Over time these rewards and cashback points add up to give a significant bonus that can be redeemed at selected retail outlets.

3. Global Acceptance: A credit card is a must have when you take international trips. Credit cards are accepted worldwide and thus it can prove to be quite handy when you are on foreign land. Booking hotels and renting cars become much more convenient with a credit card. These are readily accepted worldwide and thus credit cards have the potential to make your travel experiences hassle free.

4. Purchasing Power: Credit cards enable users to make big ticket purchases they might not otherwise be able to afford. Also spreading the cost of a large purchase, such as a home appliance over several monthly payments is possible due to credit cards. This can be useful for emergency situations where you might struggle to pay immediately for something you need.

5. Reward on Purchases: Many credit cards offer rewards programs that will accrue points, discounts or other benefits like frequent flyer miles.

6. Credit Card Balance Transfer: A balance transfer is a facility given by credit card issuer where the subscribers can move the debt of one credit card to another. The balance transfer allows you avail of an introductory offer on a new credit card where you are not required to pay interest on the outstanding balance for specified period. Also switching to a lower interest credit card can help you save money in the long run. A balance transfer can also help in consolidating your debts and make your life easier. However, you still have to pay back what you owe.

7. Improves Credit Score: Credit cards are an important tool that serves to repair and maintain your credit score. The financial transaction conducted using your credit card is an important factor that impacts your credit score.

8. Grace Period: The money spend on credit card works similar to loan. Credit card levy zero interest on purchase for a period of 30 day. The money on credit card is borrowed in the form of cash advance which means you do not need to pay funds immediately unlike debit cards. The grace period offered works in your favor and if you repay the bills within the grace period then you save the finance charges as well make a positive impact on your credit score.

9. Tractability: The electronic record keeping that comes with credit cards make it easy to track your spending and identify fraud.

10. Security: There is always a chance that you might get pick-pocketed with a less than 1% chance of getting hold of pick-pocketer. With credit cards, you immediately call up the hotline and block the card. Also, in cases of prompt reporting of a lost or stolen card, you’re protected against any unauthorized usage. Cashless purchases are possible with credit cards thus protecting hard earned money is easier with credit cards.