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A credit card is a financial item that usually comes in handy for day to day life purchases as well as other purchasing other big items. You can easily use a credit card to pay your bills for practically anything or even use it to travel around the world or buy expensive items immediately that you might not have money for right away.
Now credit cards are very useful and beneficial to people as they sure do have a handful of advantages, but of course, use them responsibly.
Credit cards can be an essential item for gaining rewards, going on free trips, and handling other expenses with ease. What does gaining rewards mean? It means that with every purchase that a cardholder makes, it gets back some reward for making that purchase.
Now, this obviously varies depending on the card type. There are different forms that you can get your reward in, such as cashback, discounts, free trips, etc. This becomes a very big advantage for those who use credit cards on a normal basis.
Some credit cards also offer you some fraud alerts which help protect you from experiencing any sort of theft. When there is some unusual activity on your credit card, you receive a call or text. If it isn’t you, then the transaction can be stopped immediately. This is easy to do because there’s no direct money on your card. Whoever has your card doesn’t have an immediate link to your money. Some credit cards also take full responsibility for unauthorized purchases.
Cardholders also earn miles at the rate of one mile per dollar. These can be in net purchases or sometimes one mile per 2 dollar spent on lower card options that wouldn’t have any annual fee. However, how valuable or useful these points are totally depends on what airline you choose to purchase your ticket.
Many credit cards already come with many types of insurance which most people don’t even know that they have. Some examples would be product warranties, car insurance, etc.
Credit Cards are Universally Accepted
Credit cards are universally accepted. So, if you do go to a foreign country and don’t have the cash of that currency on you, there’s no need to worry because you can easily pay with credit cards. However, debit cards are not accepted in other countries.
Some purchases are also hard to make through a debit card as you need a set amount of money in your card to make that purchase. The dealer asks you to put more money in your account to ensure that you have enough money to pay for any damage you might cause to whatever you could potentially be rented. Hence, it is easier with a credit card since most companies have made it a requirement as you can charge customers easily for any further cost than what they’ve already paid.
Improve Your Credit Score
Furthermore, credit cards also help you improve your credit score. If you’re trying to improve it or start a credit score. When you use a credit card properly, all your payments will be reported by your credit card company to the credit bureaus. Whereas, using a debit will not keep a hold of your credit report. These are the major reasons why a credit card could be of good use to you. But different credit card companies offer different advantages, so be sure to check them out before you start one.