As long as you’re responsible for handling your finances, a credit card can help you budget your money correctly and get rewards that you won’t otherwise earn when paying cash. The safety, protection, convenience, and perks are just some of the reasons why you should try this.
Nowadays, there are various payment options such as cash or debit cards to help a person stay within the budget. Some holders are more encouraged to spend money when they don’t have it, especially when the offers begin from their emails.
However, there are still some who are very responsible in using their credit cards, and this can even contribute to their well-being. Smarter holders can enjoy fine dining and hotel amenities by using their cards. If you live in other countries like Norway, you can check out the test av Kredittkort to know more information about the offers available. You may find that some of them are very convenient to get you around the city, and it’s safer than handling cash and coins.
Some of the ways that credit cards can help you are the following:
- Build a More Reliable Credit History
Banks and lending companies check your financial activity and credit scores, and these are the factors that are essential when you borrow money. The scores are measured partially when you use credit cards.
Unlike debit cards and cash, your Visa, AmEx, Mastercard, or Discover is often reported to the credit bureaus, and they are the ones who are responsible for monitoring the scores. An excellent track record of payment without any delays can increase your rating, and the longer you’re paying on time, the higher your score will be.
- Sign-up Bonuses for Grabs
Company issuers can offer you a huge bonus as a welcome gift when you sign up with them. This has a minimum spend within a timeframe, but you can get the rewards if you start using your credit card within six months. This invaluable perk can give you as much as 80,000 bonus points that you can use to buy essentials as long as you hit a certain amount.
For example, there are preferred cards that announced that they would be giving their customers around 60,000 bonus points when they have a minimum spend of $4,000 when they use their cards within three months. Another advantage is that there are always those statement credits that can go towards supermarket purchases that can give you fresh food every day.
- Cash-Backs Offers
What made other companies popular is the cashback that they are giving their valued clients as well as deals. When you meet specific terms and conditions plus minimum spending, you can get more than 10% cashback in some promotions. Many companies award their loyal customers with these exclusive perks, and cashback credits can go a long way for you.
When it comes to cash back purchases, just using the platinum card can give you unlimited rewards. Over time, the cashback accumulation can be sizable enough to let you stay in one of your favorite hotels.
- Reward Programs are On-Hand
Almost all of the credit card companies are offering reward programs for all their clients. What you need is to find out which ones fit the way you spend and your overall lifestyle. When they have partnered shops where you’re shopping, you can take advantage of these as well. Some of the points that you can earn may include the following:
Frequent Flyer Miles – You can take advantage of the miles from your favorite airline carrier with the help of points. You can redeem them with vouchers and discount coupons that you can use when you travel in the future. The lucrative bonuses may be available for first-time users, so better ask if mileage bonuses are waiting for you.
Point Systems – The points can be earned based on the amount of cash you’re spending. You can convert them into rewards or gifts for your loved ones during the holiday season.
Rewards for Traveling – This is where you can take advantage of the points and client loyalty programs offered in many hotels along the coasts. Ask your provider about the hotels where they are affiliated to get the perks when you use credit cards. Some will even give you points for gas, groceries, and restaurant dining in many countries.
- Tracked Spending
You’ll always receive an itemized list about your spending after a month. Many credit cards already have built-in trackers for their customer expenses, and this is essential information if you want to have better financial management. You’ll know more about your habits on where you’re spending your money, and these records are kept for years.
You can use the list during tax time, and this can give you lots of benefits. For one, the spending for the past year has already been compiled, and you save lots of effort and time itemizing your assets and liabilities when it comes to paying taxes. If you have a business, the trackers can help determine the exact amount you have spent regarding property leases, business costs, contributions to charities, and more.
- Protection from Fraud
One of the advantages of having a credit card is fraud protection. Some safeguards monitor the account in real-time, and they track the possible signs of fraudulent activities. Even if thieves started to make thousands of purchases, the owners don’t technically lose money because they are not withdrawing from their available funds.
Once the fraudulent activity has been reported, the particular numbers will be blocked, the credit card will be put on hold, and a thorough investigation will happen next. Some companies don’t usually hold the owners for fraudulent practices.
Within 60 days of the report, there will be reversed transactions that will happen. The money will be restored, and the payments will be canceled. This may take time, money, and effort, but this is better than getting the debit card accessed by someone else, and you’ll lose money in real-time. Read more about fraud when you click here.
- Transfer Balances
You can move your debt from one card to another in some banks. This can especially be helpful if you are going to switch to a promotion that can offer you a lower interest rate in a month. Other debts like mortgage and car loans may also be transferred in the credit card.
Of course, it’s imperative to pay the loan in due time. However, if you are switching your debts from one with a lower interest rate, you can save money, consolidate everything, and make your financial life more manageable.