Here’s Why Using Your Credit Card Is Beneficial

You can easily apply for a credit card online as it comes with numerous benefits and features that can help you save more. All you have to do is pay your bill on or before time. On-time repayments will help you avoid paying the high interests and penalties.

Below are some more reasons as in why you should apply for credit card.

  • Sign-up bonuses

Financial institutions offer signup bonuses as a welcome gift when you apply for credit card. These can add up to a large amount of savings and benefits.

  • Rewards

Credit cards run on a point system where users accumulate rewards if they spend up to a specific limit. In fact, some companies have promo periods that run for particular durations; cardholders can accumulate higher points during this time. If the stipulated threshold is reached, the users can redeem their reward points for cashbacks, discounts, and gift vouchers.

However, when you apply for a credit card online, always choose the ones that suit your requirements better.

  • Cashback

Credit cards also offer cashback on some transactions and purchases. Earlier, companies offered only 1% of cashback; users paid discounted amounts when they shopped at specific stores. Nowadays, cardholders can avail up to 6% cashback if they opt to pay by credit card.

  • Safety features

You may be surprised to learn that shopping online via credit cards is safer as compared to the debit cards. This is because if you use debit cards, the money is debited from your savings account immediately.

On the other hand, in case of any fraudulent transactions by a credit card, you can approach the company for a chargeback.

  • Overseas spending

If you are holidaying abroad, chances are you will need additional money for various purposes. You can opt for a credit card online for paying all the overseas costs and also saving considerably.

Do not use credit cards that charge high rates if you shop abroad. Instead, go for the ones that do not levy charges. Also, some cards do not charge interest for 3 months or so; hence, a good choice. However, be sure to clear the outstanding amount before the due date, or you may have to incur high interests.

If you don’t have one yet, apply for a credit card online. The process takes only a couple of minutes. Learn about the features and opt for one that suits your shopping patterns in the best way.

  • Insurance benefits

Credit cards come with an array of benefits that consumers may not be aware of. There are credit cards having benefits such as travel insurance and extended product warranties – to name a few.

Now, you have many reasons to pay for your purchases via credit card. However, similar to all aspects of life, you must be careful and take the required precautions when making your payments.

The advantages of credit card are as follows:

  • Firstly, carrying a credit card is much safer than carrying all that extra cash. A credit card can easily cancelled if you happen to lose it and today most financial institutions have security processes in places to protect the card holder if they suspect their card has been stolen or used for fraudulent transactions.
  • A credit card can be used to improve the credit rating and the payment history will be a key part of the credit file. If the credit card account is managed well, it will show on the credit history.
  • With a credit card, one can enjoy interest free days and if the payment is made in full in that period, then no extra charges are incurred.
  • The best thing about credit cards is that one can earn extra reward points as one spends and then these points can be redeemed to enjoy a number of other benefits, be it in traveling, dining, buying fuel or even in retail outlets. Loyalty programs from airlines are great for frequent flyers.
  • With a credit card, one can request a chargeback if one is unhappy with a product or service but this is impossible in case of cash transactions.
  • If one is traveling abroad, then there is no need to worry with currency as credit cards work in any currency. Currency conversion fees might be applied but apart from that there are no other charges as such. In fact, some credit cards waive off charges for international purchases.
  • Credit cards can also give one emergency line of credit and even if one does not have enough cash reserve, credit cards can be used to cover sudden high expenses.

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