Reasons Why Having A Credit Card Is Important
One of the most talked-about financial topics is whether one should own a credit card or not. Many may find credit cards as a helpful tool, while some regard it as unnecessary. But what is the truth behind owning a credit card?
We know that anything in life has its boons and banes, but the question remains, will the benefits outshadow the disadvantages? Should you own a credit card?
To answer your questions, here are the top reasons why you should get a credit card.
Carrying a huge amount of money in your purse or pocket is risky, especially if you’re going to crowded places. Thieves are everywhere, and carrying cash around increases your chances of being robbed. However, if you only carry a small amount of cash plus a credit card, you can make sure that your money is safe.
A stolen credit card can be easily dealt with, unlike with stolen cash. You can just call your bank and report a missing card, and they will automatically deactivate it. Thieves won’t be able to use it once you have already alerted your bank.
Aside from the risk of carrying loads of cash in your purse, it is also inconvenient. If you carry just your card, you can still shop with ease. When traveling, a credit card can also let you purchase things easily, even in other countries with different currencies.
It will help you save time as you wouldn’t need to go to a bank for currency conversion during your travel abroad. You will just have to pay using your credit card, and you are good to go. Your card is good as cash, even in other countries.
Credit cards are not only used for purchases. You can also withdraw cash using the card via an ATM. If you don’t have the time to apply for a loan, such as CreditNinja.com’s various loan offers, you can use your credit card and withdraw the amount that you need as long as you do not exceed your card’s credit limit. This transaction is often called a credit card cash advance, where you are borrowing cash against your card’s line of credit.
You will just have to pay a monthly finance charge for the cash withdrawal. The charge you are going to pay will be based on your credit card policy. It is best to check with your credit card issuer to know the interest rate and other charges when performing a cash withdrawal with your credit card.
A credit card cash advance is one of the best alternatives for a loan because you wouldn’t need to go through a loan application process. You can get your cash anytime you want without providing any requirements and filling out forms. Plus, borrowing money against your credit line won’t affect your credit score.
Rewards And Cash Back Program
Most credit card issuers give cash back programs and rewards to their customers. This gesture is their way of thanking their loyal customers and it also serves as an initiative for them to keep using their credit card.
The more you use your card, the more rewards you can get. To enjoy the rewards offered by the credit card company, you must choose the reward that will fit with your spending habit.
Easy Tracking Of Your Spendings
To be able to have successful budgeting, you must track all your spendings accurately. One of the benefits of having a credit card is that they help you track your spending through your credit card statements.
Your statement will act as an expense tracker. All your spendings paid using your card will be recorded along with all the important information such as where, when, what, and how often you are spending. Credit card companies even keep your records for years and you can ask for access when you need it.
When it is time to pay your taxes, this information provided by the credit card statement will be very useful. You can have easy and convenient access to the statement of years of spending, which will help you save time and effort.
Credit cards have fewer fees compared to debit cards. The only fees you will be paying will be the interest rate of your credit card purchases and the annual fee imposed by the issuer. Debit cards will require you to pay for overdraft fees, maintenance fees, and foreign ATM fees. However, with your credit card’s rewards system and cashback programs, you can easily even out the said annual fee.
Some credit card companies don’t charge their customers an annual fee; you will just have to be very diligent in searching for this type of credit card issuer. The fees on your credit card will generally be minimum or even zero if you know how to find the best credit card company.
It’s Time To Get A Card
If you don’t have a credit card, then it is time to get one. You never know when you’ll need extra cash or when you’ll need to purchase something important before you get your paycheck.
Reasons Why Having A Credit Card Is Important