What comes to mind when you hear the word credit? Liability, of course. Credit cards have an image of encouraging people to spend more than their spending and increase their liabilities to pay in the future. This thing fears them for not having credit cards.
Other payment options like debit and cash seem to be more convenient and budget-friendly. But people having good credit cards know the benefits and stimulate other people to have one.
However, to boost your credit and savings, you need to choose the right card which makes you the most money. And also you need to know which cards you are eligible to apply for and which suits your lifestyle. Standard Chartered Cathay Mastercards, Cathay Pacific, credit cards are the best way to turn your everyday spending into remarkable trips.
These Several benefits show the worth of having credit cards.
Having a credit card saves you money sometimes when you make online purchases. Some companies offer deals of discounts which can only be availed if you are using credit cards. If you don’t have credit cards, you have to pay the exact amount without availing any offer.
It happens a lot that in many instances you are out of money to purchase anything. Credit cards make things easier for you. It is like borrowing money at a low cost. Credit cards give you the benefit to access money in emergencies. For example, if you are far away from your home and suddenly need money that you are not carrying around, you can simply get credit to make you stay peaceful. The only thing you need to do is find the right credit card services that offer low-cost interest on early credits.
Some credit cards make you earn rewards when you use them. For example, when you go to a restaurant you are told that if you make your payment with a card, you will get a free discount. And some cards offer travel benefits such as free tickets and some give you some percentage of cash back when you make any purchase.
Having a credit card gives a detailed summary of spendings for those people who are not good at keeping their purchase record each month. These details help a person to analyze his budget and where his spendings is going and create a plan to spend wisely.
Convenient For Traveling
Traveling costs a lot of money. Having a card provides an easy way for these travelers so they don’t have to carry a large amount of cash in their wallets. Credit cards are your best partner when you are away from home and traveling. Moreover, these credit cards give easy foreign exchange.
When you move to another country, the currency is different. For exchanging currency, you have to pay some percentage of your amount as a commission and this makes your trip even more expensive. Having a credit card means no commission on currency exchange and you will get your cash as it is.
Builds Credit Reports
Having a credit card creates your credit history and also increases your credit scores. This affects your payments and the better you score, the less you have to pay for your purchases. It also benefits you when you are taking out a loan.
If you have a strong credit history, you will pay less interest on the mortgage than the individual who has a low-grade credit history. Having a good credit history also makes the insurance plan easy for you.
No Fear Of Loss Or Theft
You are in a crowd and some pickpockets steal your wallet full of money. This is not less than a nightmare. Having credit cards means your money is secured and if any robber gets it, you can immediately block your card to make sure he doest withdraw any amount. Your lost money can never come back. But losing a credit card is not something big. You can report to your company and secure your card transactions.
Ensures Purchase Protection
You are purchasing items in cash and the accountant gives you a receipt of your purchase. And after a while, you find some items defective and suddenly realize that you have lost the receipt. In that case, you can never claim to exchange those items.
With the use of a credit card, while purchasing stuff, you ensure protection against your purchased items. Having a record, you can show them proof of your billing and can exchange your items according to the company’s policies.
Insurance Of Purchase
Some credit cards provide insurance on items you purchase from the market based on certain agreements. In case that thing is broken, stolen, or does not work after using it for a certain period, some cards ensure you have your money back.
You might have gone to restaurants and places where you realized that you can only pay with credit cards. And you don’t have one. That creates a hassle for you at that moment. Having a credit card with you saves you from such hassles.
Some companies insist that you can only make the payment through credit cards and these situations are common when making hotel reservations and buying automobiles.
Rules To Follow
However, these benefits surely encourage you to have credit cards with you but you need to pick the right card for you and keep some rules in mind for its effective use.
Never Miss A Payment
The first rule of good credit is never to miss a payment. If you miss any, you have to give extra interest on that payment.
Use The Card
Never let your card stay in your cupboard. Some owners are using their debit cards and cash payment methods while their credit cards lie untouched. This will never enable you to improve your financial score.
Cancel Unused Cards
Simply throwing or cutting your unused credit cards does not mean that you are free from authority. Those cards still belong to you. And if you apply for other cards and the lender sees your card records, it will see how many credit cards you are already availing of. It will limit your further access to credit cards.