Most of the time, when people talk about credit cards, they always have negative impressions. These impressions usually come from the past experiences by other credit card holders who failed to manage their balances get drowned from large interests. Not many people are realizing the benefits of using credit cards when used responsibly and with discipline. In this article, we’ll present all the things you can take advantage of having a credit card.
While reading this post, there’s an assumption that you’re going to use your credit cards in an orderly manner, that you’ll pay your credit card balance every month. So if you’ve got the discipline, here’s a list of benefits you can actual take advantage of from using credit cards:
1. Hassle free money transaction. With credit cards, you don’t need to bring large amount of cash with you. You just need to simply swipe your card and voila! Another thing is the convenience in traveling. Using credit card, you don’t need to go all the trouble exchanging for currencies. If you’re used to traveling abroad, credit card usually offers good conversion rates compared to banks in the same country.
2. Credit score. Every time you use your credit card and be able to pay your balance on time, you’re actually gaining a good credit history. If you got good credit score, you’ll get the chance to have the best interest rates and low finance charges on your credit card balances and loans. Another thing, if you got good credit history, you have better chances to be approved for higher credit limit.
3. Online shopping. If you love buying online, credit cards can help you save money on items you purchase. A lot of great offers nowadays can be found on the internet. In many cases, the only best way for you to transact money and purchase online is through credit card. If you got no credit card, you might end up paying more for the same product or service that you will be purchasing on the internet.
4. Financial emergencies. Credit card can be handy if there’s an emergency going on. It can provide easy solutions to paying off many emergency expenses until you got the time to transfer the money from your bank account. BUT you need to identify first if it is really an emergency where life and basic needs are in risk. You must also consider the interest if you can afford to pay the balance on time.
5. Cashback. Another thing you can take advantage of from using credit card is to get 1-5% back of your total purchases. If you want to get your money back after spending, cashback credit cards are for you. Through these cards, you’ll be able to receive cash rebates around 5% on what you spend on the most.
6. Rewards. One of the things I like the most about credit cards, is the rewards! Yay! Because of these credit cards, we’re getting Starbucks coffee for FREE. With BPI credit cards, there are other rewards types such as Gadgets, Home Essentials, Shopping Indulgences, Leisure & Relaxation, Dining, Travel, Card Membership Fees, and etc.
7. Keep track of your purchases. If you’re messy with your expenses and always lost, don’t know where your money is going, with credit cards, every purchase is tracked. Credit card history can give you a complete and detailed summary of your expenses each month without you taking care of it. This recording will help you to create your budget plan.
8. No fear of loss or theft. If you’re thinking that having a credit card in your wallet is risky, well, not really. If your credit card is lost, you can simply call your credit card provider and report that your card is lost or stolen. They will deactivate your card and hold all proceeding purchases. You can also apply for fraud protection program to put your card under their active .
9. Purchase protection. Many credit cards provide insurance for a short period of time for the items you purchase. This means that if something bad happens on your purchased item, like it gets broken, or stolen right after you purchase it, you can get your money back or have your item replaced. Just check your credit card’s terms of agreement or call them to inquire what type of protection your credit card has.
10. Other Protection. This can be a good way to secure you from scammers. If you received defective items from a trusted merchant, even if it’s just accidental, you can simply call the credit card provider to hold the payment. They’re the ones who will do the investigation for you.
Your credit card gives your money a grace period before it actually reach the merchant. If you transact through cash payments or debit card purchases, your money will gone instantly. With credit card payments, your money still remains in your account until you pay your credit card bill.
That’s it! There are a lot of benefits to those who use credit card responsibly. Just make sure to always pay your balance in full and on time. Don’t spend more than what you can afford and always make sure to always have your budget plan so you won’t be having unnecessary purchases.
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