Certainly credit cards have a somewhat tarnished reputation in this day and age. Millions of people all around the world often abuse their credit card(s) in an attempt to purchase things which they simply cannot afford, which ultimately leads to heartbreak. However, there are several reasons to own a credit card if you are a responsible consumer.
Consider the following items before you pass on owning a CC…
Rewards and Cashback
Believe it or not, if you’re the type of person who can pay off their credit card bills on a monthly basis you might be eligible for either a rewards or cashback program/offer. Some companies add vouchers or points to your account which can be redeemed (often automatically). Moreover, some others actually reward their good customers by eliminating certain annualized charges from their bills or by granting them additional bonuses like cash payments. In fact, some companies might be partnered with a slew of networks, including airlines, and can offer you incentives like free or discounted flights, etc. For example, you might want to look for the longest 0 apr balance transfer credit cards, which can be found as introductory offers to new customers.
Protection against losses and theft
It’s so easy for a thief to quickly lift your wallet and steal your paper cash, disappearing without a trace. However, the same cannot be said for credit cards, as they leave a distinctive paper trail wherever they are used. In fact, most companies will offer protection to their customers, ensuring that they won’t have to pay exorbitant fees in the event that their card is stolen. Moreover, if you happen to be in a foreign country and lose your valuables, replacing a credit card is a rather cheap and efficient way to get back on your feet.
Credit Score Enhancement
More often than not, most people tend to get their first credit card because they want to improve upon their credit score. As they say, the only way to build up credit is to prove that you’re a worthy to lend to and owning at least one card (while making sure to pay everything off in a timely manner) is probably the best way to achieve this. At the same time, one should avoid signing up for more than one card, as it might be very easy to lose control over your expenses and reflect negatively upon you. Additionally, having no proven credit history is pretty much just as bad as having a terrible credit rating (as no lenders will want to work with you as an unproven asset). Whatever you do though, remember to pay your bill on time and in full because the elevated interest rates of credit cards are well-known and can very quickly inundate you with additional expenses if you’re not careful.