LIFE STYLETECHNOLOGY

Why should you use a credit card?

Introduction

Why should you use a credit card? A credit card is an excellent source to use in our daily life as we need a way to fulfill the financial requirements. Unfortunately, most of the people are not aware of the benefits that they can experience with it!  If you have self-control when you are spending money, a credit card will provide you a lot of surprises.

Moreover, it will be the perfect option for your purchases if you have understood the way it works, and pay the full amount on the due date.
Unless you have those habits, you won’t be able to make your life more comfortable with the help of a credit card. Because it will take you into a lot of trouble, as we have mentioned in our site with another article.
For example, Australians have more than $32 billion in debt, according to MoneySmart’s debt clock. If we take the average, one cardholder has $4,200 of debt nearly. Without a doubt, it is a big risk for them. Therefore, we must be aware of controlling these levels so that it won’t be the reason for financial evil in the economy.
 As we have mentioned above, a credit card is a good option to spend, but it requires high self-discipline! Then, you can enjoy the following benefits.

Benefits of using a credit card

  • Rewards programs

Most of the time, these cards offer amazing reward programs, but there are some conditions here. So, it will be better to avoid overspending or purchasing unnecessary products to win those rewards. First, consider all of them and choose the most suitable program that gives the highest benefits for you!
As well as that, they provide this benefit for a wide range of points that spreads from grocery shopping to flights and car hires. Also, you can settle the annual fee with these points that you earn throughout a year.
  • Frequent Flyer miles

Are you a person who travels frequently? Do you spend more time in airport lounges? Then, consider choosing a Frequent Flyer credit card as it is the perfect choice for a person like you!
Furthermore, this card works the same as the reward cards. You will gain points whenever you purchase products using it.  You can spend those points on flights. Especially, it provides the chance to upgrade your seat to first-class too.
However, this type of card won’t be the right option if you are expecting to spend those points on gifts cards and other stuff.
  • Signup bonuses

 Credits cards provide you many benefits for signing up with them. For example, they offer lower interest rates, complimentary flights, and large amounts of bonus points. However, you must be aware of the terms and conditions before applying.
In addition to that, they expect you to fulfill some requirements to obtain these types of bonuses, such as the minimum expenditure within the first few months. If you can maintain such kind of a favorable behavior, a signup bonus card will be a great experience!
  • Cashback

According to the credit card’s cashback rate, they will provide your money back into the account. Most of the time, the card can earn points from 1% to 5% from your purchases.
However, they use some factors to decide the points. For example, the shop you went to.
  • Complimentary travel insurance

As we said earlier, credit cards offer a lot of protection for their customers. Moreover, those protections come as purchase protection insurance, warranty insurance, rental car insurance, travel insurance, etc. Nowadays, the card with travel insurance has become the most popular selection among cardholders.
  • Purchase protection insurance and price protection insurance

These protections are also popular in the world. If you know the value of these insurances, you will be able to gain a lot of benefits.
Can you get back any payment that you did regarding one particular product if it had a decrease in the price? What happens in the price protection insurance is, the card will pay the difference of payment you did and the decrease of that price amount. Isn’t it wonderful?
On the other hand, there are some limitations here. For instance, the rules of the country that you are making your purchases will matter.
Purchase protection insurance is also a great benefit if you know the way it works. The cardholder can cover the expense of damage or theft that arise regarding a new item you purchased! Amazing!
For instance, imagine that you drop your new iPhone into the sink. You can claim that amount to get a new one.
  • Fraud protection

Without a doubt, the users expect high protection for their credit cards to avoid phishing attacks. So, fraud protection is a facility that helps you to improve the security and keep your money safe from such kind of fraudulent purchases!
In addition to that, Visa credit cards include the technology of ‘Verified by Visa,’ and it monitors the account to search about suspicious purchases. So, you can notify the company if the card is used fraudulently. Until they provide you a new one, you do not need to settle for those transactions.
  • Convenient and safe online shopping

Using credit cards is easy to use for online purchases, but there is a risk too. As a solution, most of the cards come with fraud protection that minimizes this risk. Always try to deal with the reputable websites as they have added some features to save your card details.
  • Less cash on hand

Even a lot of people are not aware of this new technology, it is a safer method than keeping cash on hand. If it is stolen, you just have to follow some simple steps to cancel the card.
  • Works in any currency

If you are a person who travels frequently, you may know the difficulty of changing from one certain currency to another. But it won’t create any trouble if you have a travel credit-card with you!
As well as that, it has become the most popular method to make purchases overseas. It offers facilities such as strong exchange rates, and pre-authorizations for booking hotels.
  • Near universal acceptance

There are various types of options that you can choose when you are visiting another country. Among them, a creditcard is a perfect choice as it has a universal acceptance, which is the most important facility for a traveler.
In addition to that, it will be better to choose this option than a debit card.
  • Build your credit score

As we have mentioned earlier, a credit card is a good source that provides many other benefits, even people are not aware of them. It is not just a method to pay your expenditures. If you know the tips, you can gain a lot of surprises!
On the other hand, you must follow the recommended behavior to be a qualified person to enjoy these benefits. For example, keep in mind to pay your total balance on the relevant date in every month. Then, your credit score will increase!
How does it help you? It can be a favorable point when you are applying for loans in the future. That’s how it helps to maintain a positive credit score, and it is the importance of practicing great repayment habits.
If you do not follow such a way, it will create a big black mark for your credit history.
  • Interest-free days

This is also a golden benefit that these cards offer for their holders. According to that, you can enjoy some days without paying any interest on those purchases. Most of the time, it will be 55 days.

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