Despite the benefits of credit cards, personal finance experts spend a lot of energy trying to stop us from using them — and with some reason.
Many of us mistreat them and accumulate debt. But, contrary to popular belief, if you know how to use your card responsibly, you can enjoy many more benefits than you might think.
Below, we will show that there is more than convenience among credit card benefits. Check out:
1. More security for your purchases
When it comes to protecting your money, the benefits of credit cards compared to cash, checks or even debit cards are numerous. We can mention among them:
- Your credit card issuer likely offers optional security alerts. Enroll to have your account immediately notified whenever there is unexpected activity.
- Lost money cannot be replaced. Therefore, most credit cards can be reissued in a short period of time (and without surcharges).
2. Rewards programs
Great rewards programs are available on a number of credit cards, but they must work for you. In this manner, accumulating unnecessary purchases or going over budget is pointless when trying to get points.
So, think about how you use your credit card and choose which program benefits you most. You can spend rewards points in different ways, for example: from discounts at the cinema to shopping at the supermarket.
3. Air miles for those who fly a lot
If your lifestyle involves frequent travel, a credit card that helps you accumulate air miles could be a great option.
These cards are very similar to rewards cards that earn you points when you make purchases. But they are made for the purpose of spending said points on flights and trips.
4. Insurance is a credit card benefit
Credit cards can come with a range of consumer protections. For example, these may include rental car insurance, purchase protection insurance, extended warranty insurance , and even travel insurance .
These extras can provide you peace of mind and save you time and money when you need any of these services.
5. Convenient and safe online shopping
The benefits of credit cards go beyond the convenience of using them for your daily purchases in physical stores. They are also much easier to use online.
Most credit cards have varying levels of security and fraud protection. Therefore, shopping with them online is increasingly safer.
Most locales additionally offer the additional advantage of saving your Visa subtleties. In the event that you utilize a trustworthy site, this component can be an extraordinary method for saving time on your buys.
6. Improved credit history
One of the main benefits of a credit card is that it can improve your credit score when you use it responsibly.
Regular use and paying your balance in full and promptly is one of the best ways to build a solid credit history. This way, creditors know that you can be trusted to borrow money and obtain financing, for example.
7. Bonus annual fee
Most credit cards charge what is called an annuity, which is a service maintenance fee. The fee amount varies depending on the card chosen and can be paid in installments throughout the year.
Although it may seem like just another expense, sometimes it is possible to convert this amount paid into benefits, such as credit for your cell phone. In this case, the fee is called bonus annuity.
8. More control over expenses
It might sound uncommon, however utilizing a Visa works on your capacity to deal with your spending. Most of them offer apps that show you exactly where and when you made each purchase, which makes it easier to separate them into categories to see where you’re spending the most.
Moreover, each receipt has all the data you really want to be aware, and you can follow your month to month spending.
Conclusion:
In conclusion, credit cards offer a range of benefits that extend far beyond the convenience of making purchases. While personal finance experts often caution against misuse, responsible use of credit cards can provide enhanced security, rewards, and financial flexibility.
From the safety of online shopping to the potential for air miles accumulation and improved credit history, credit cards can be valuable tools when managed wisely. The added advantages of insurance coverage, bonus annual fees, and better expense control contribute to the overall value of using credit cards in a responsible manner.
FAQs:
How do credit cards enhance the security of my purchases?
Compared to cash or debit cards, credit cards offer more security. Credit card issuers often offer optional security alerts to notify you of unusual activity. If your card is lost, it can be reissued quickly without additional charges, unlike lost cash.
What are the benefits of rewards programs associated with credit cards?
Rewards programs offer various perks, from discounts at the cinema to shopping at supermarkets. However, it’s crucial to use your credit card responsibly and choose a program that aligns with your spending habits to maximize the benefits without overspending.
How can a credit card with air miles benefit frequent travelers?
For individuals who travel frequently, credit cards that accumulate air miles can be advantageous. These cards function similarly to rewards cards but focus on earning points for flights and trips, providing a valuable option for those with a lifestyle involving regular travel.