Plastic money provides convenience but many financial experts warn you against misusing your card. When used responsibly, credit cards have several advantages.
Here are 10 reasons when using a card may be a good option.
- Sign up bonus
If you have good credit, you may be eligible for a significant signing up bonus. Some card companies may offer reward points that may be redeemed for things.
- Reward points
Most credit cards allow you to accumulate reward points for every rupee that you spend. Some companies may provide promotional periods where you accumulate higher reward points. These are redeemable for several items.
- Cashback
Some cards offer cashback for certain kinds of purchases. It is recommended that you check the terms and conditions related to such cash-back offers.
- Flying miles
If you opt for a frequent flyer card, you may accumulate miles when you use the card to buy an air ticket. These miles may later be redeemed against air tickets.
- Security
If someone steals your credit card, you may intimate the card-issuing company in order to prevent fraudulent use.
- Sellers’ honesty
When you use your card to pay vendors for certain projects like renovation or repairs, you have the option to resolve any disputes. In case of a dispute, the company withholds payment to ensure your problem is resolved before the money is paid to the vendor.
- Grace period
Paying with a debit card means your bank account is immediately debited with the amount. However, when you use plastic money to pay for the purchase, you are able to enjoy a grace period until the next bill payment date.
- Insurance
Several cards have several automatic inclusions such as warranties, insurance, and others. These inclusions provide you with safety against your purchases.
- Universally accepted
When you travel abroad, making payments for a hotel or car rental is difficult with a debit card. In such instances, using your credit card makes it easier to pay for such purchases.
- Building credit history
If you want to improve your credit score or build one, using a credit card is an excellent option. When you make timely payments of your card bills, it is beneficial in building credit. A higher credit score makes you eligible for additional benefits especially if you apply for a loan in the future.
Although there are several reasons to pay using your card, it is not always the best option. It is recommended you use the card responsibly and make timely payments to avoid late fees and finance costs.