Many people believe having a credit card is not good for you. However, here are some of the benefits for have a credit card.
Build Credit
If you want anything in live, a house, a car, etc., you need credit. It’s one of the biggest benefits of having a credit card. When you use a credit card responsibly and make on-time payments, you are building a strong credit score. On the other hand, not paying your bills on-time and using your card irresponsibly can lower your credit score. Having a strong credit score will help you qualify for loans, other credit cards and mortgages. In addition, the higher your credit score, the lower your interest rate. This can save you thousands of dollars on purchases like a car or a home.
Rewards
If you’re in to getting free stuff, many credit cards offer rewards when you use your card. These rewards can include cash back, travel points and discounts on the things you buy. Over time, these rewards can add up. You can use them to save money, get higher statuses at hotels and airlines or get free stuff. In addition, if you have a store card, many offer free interest financing on certain purchases.
Emergencies
The unexpected can always happen. Many times, you may not have the funds to cover those expenses. Credit cards can help when you have an unexpected bill, car repair, home repair, etc. You can use your credit card to pay for the purchase and pay it back over time. However, it is best to pay card off as soon as possible so you don’t too much in interest.
Convenience
If you don’t have enough cash or money in the bank to pay for something, you can use your credit card. It’s convenient for everyday purchases. More importantly, if you have a rewards credit card, these everyday purchases can help you rack up points, cash back and points. In addition, you don’t have to worry about always carrying around cash.
Purchase Protection
Finally, a huge benefit of having a credit card is purchase protection. Purchase protection cover you if you buy something with your credit card and it doesn’t work or it breaks. The credit card company will help you get your money back. Some cards even offer protection when you rent a car or you travel. If you lose your baggage while traveling, your credit card will cover it. Or, if your rental car is stolen or damaged, the credit card company may cover it.
