10 reasons why you should use a credit card

In today’s time, credit card has become a necessity of the people. If you use it responsibly and wisely, it proves to be a very useful financial tool. A credit card saves you from a cash mess and it works as advance cash when needed. Also, there are many benefits due to which people use credit cards instead of cash. So through this post we are going to give information about the reasons and benefits due to which credit card has become highly popular and is being used in large numbers.

  1. Money security

When you have a credit card, you do not need to carry cash with you. Along with this, you do not have to face the problem of open money while paying in retail or other shops. The credit card gives you the freedom to pay bills instantly and makes the bill payment process easier. This way the credit card promotes the security of your money because when you have a credit card, you do not need to carry cash with you.

2. Sign-up bonus

Many credit card issuers offer sign-up bonuses as an introductory offer. You usually have to spend a certain amount to take advantage of the introductory offer. So be careful and read the terms of the offer properly before enrolling for a credit card.

3. Cashback point

Cashback points are also available when you pay using a credit card. For this reason, more and more customers are attracted to use credit cards. It allows customers to earn or save some money at their expense. If you keep adding cashback points over time, you can get a good bonus from them.

4. Reward on purchase

Users are rewarded for making purchases via credit card. Therefore, you should choose a credit card issuer that suits your spending habits or has a tie-up or partnership with the retailer you prefer. Depending on the amount you spend, you are given a few points. These points are given in the form of cash or gift cards, which can be redeemed at select stores. In addition, if you book a flight with a credit card, you still get a reward and by adding these rewards you can get a discount on any future flights, etc.

5. Security

Credit cards provide a high degree of security for transactions. For example, if your credit card is stolen and you make a purchase or other transaction with your stolen card, you will not lose your money immediately because the credit card money is in the form of cash in advance. By reporting the card lost or stolen to the card-issuing company, the company will close and check your card and you will not be responsible if it is proved that someone else has fraudulently purchased your card. You do not even have to pay money.

6. Grace period

Money spent through credit cards works similar to debt. Credit cards charge zero interest on purchases made for a period of 30 days. Money is borrowed in advance as cash through a credit card, which means that you do not need to pay money immediately like a debit card. The grace period is in your favor and if you pay the outstanding credit card bills within the grace period, other charges are avoided.

7. Insurance cover

When enrolling for a credit card, you should check the insurance cover offered by your credit card issuer. Because credit card companies provide insurance protection. Some credit cards also provide purchase protection and extended warranties for the purchase of electronic goods or furniture. In addition, travel insurance is also offered by credit card issuers.

8. Accepted worldwide

When you make international trips, you must have a credit card. Credit cards are accepted worldwide and thus can prove to be quite useful abroad. Booking hotels and renting cars becomes more convenient with the help of credit cards abroad. Since credit cards are easily accepted worldwide. So it makes your travel experiences hassle-free.

9. Improve credit score

A credit card also helps to improve and maintain your credit score. Financial transactions are done using a credit card affect your credit score. Credit usage is reported by banks to credit bureaus. For this reason, you should always keep your credit utilization ratio below 30% of your credit limit.

10. Cash advance

Money spent using a credit card works as advance cash. If you have a credit card, you can spend more than your monthly budget and repay another month if needed.