Are you considering applying for a credit cards?
Outlined below are the advantages of utilizing a credit
card for making purchases.
Getting rewarded for your credit card use
Nowadays, almost every available type of credit card has
some type of reward connected with it. Offering perks
and freebies is the number one method used by credit
card companies for soliciting business. They will never
go head-to-head, offering lower interest rates. When you
pay your credit card balance every month, you will earn
a tremendous amount of ‘rewards’. On the contrary, if
you neglect to make your payments in full, the amount of
money you end up paying in interest in likely going to
cost you more than of the ‘rewards’ you receive.
There are many different types of reward credit cards
Some of the more popular include:
Cash rebates on purchases – Common annual
savings are 1% on all purchases. At the end of the year
you will either receive credit for the rebate total or a
rebate check will be sent to you.
Airline miles – You will earn one frequent
flier mile for every dollar that you spend. Miles are
typically worth two or three cents each.
Gas rebates – When you use your credit card for filling up your car, you will
receive a discount on gas when you use this type of
Store and restaurant discounts – These types of credit cards offer savings at participating
restaurants and stores when used.
Free merchandise – Many credit cards offer
seasonal rewards for card holders.
Some more advantages of using credit cards….
Eliminate stress at the airport – When you use a credit card to buy a plane ticker, it is
viewed as non-suspicious by the FAA. As a result of terrorism,
using cash to pay for a ticket is looked at as very
suspicious and will likely result in you being detained and question.
Protection from bankrupt airlines – Using a
credit card to buy an airline ticket offers you
protection from losing money in case the airline goes
Stop payment rights – One of the best
advantage of using credit cards for making purchases is
the ability to make stop payments in the event an item
is never received or is broken. For example, say you buy
something on the Internet, but you never receive it, you
can contact your credit card issuer and initiate a stop
payment on the product.
Improving or rebuilding credit – No matter if you have bad credit or no credit, when used
responsibly a credit card is one the most effective means of improving credit
ratings and scores. Responsible credit card use means making timely payments
every month and not going over your available credit limit. You do not have to
pay your balance in full, just on time. A good rule of thumb is to not spend
more than 15% of your available line.
Extended warranty, theft and damage protection – Many credit cards offer added warranty, theft and damage protection on purchases made with the card.