While there are many disadvantages about using a credit card, there are many benefits that one can derive from making purchases through a credit card payment. We have fortunately evolved into a cashless society, thanks to the handy credit cards. We can shop for stuffs our wallets can’t buy and less the “refill” hassle. There’s more to credit cards than just shopping convenience. You may as well call that the tip of the iceberg. A credit card can save you from financial constraints especially in case of emergencies such as paying for medicine and hospital bills and even paying for your utility bills before you are charged with a penalty after its due date. If you’re a responsible payer and you spend within your affordable credit range, then it really pays to use your credit card. Here are 5 splendid reasons why credit cards are the smartest way to pay:
1. Sign-up perks
Once you pay with credit cards, you get a chance to have fantastic free stuff ranging from $50 to an annual plane ticket. Every transaction made corresponds to a number of points, for example, five points for each dollar spent. That means your plane ticket will either be discounted or totally free as your points accumulate. How big the points are depends on the number of purchases you make or on the available offer by the card company. Once you reach a certain number of points, you can claim these in the form of rewards or gift checks in some stores.
2. Payment convenience and protection against fraud
With credit cards, you only pay for the items you buy and the transactions you make as long as you make the payment before your due date. You can enjoy cashless purchases without incurring an additional charge once you pay on time. Once you lose your credit card, notify the credit card company immediately. Your credit balance stays intact even if somebody else uses your card fraudulently. There’s no need to wait for an agonizing two cashless weeks (at least) before a bank can reverse the fraud. Your credit card fund remains as the bank investigates.
3. Wide acceptance of credit card payment
Banks always require a fund to your bank account to be able to use a debit card while you don’t need a bank account to be issued with a credit card. Compared to debit cards, it is easier to pay with credit cards as there is a wide acceptance of a credit card payment in most merchants than they would on a debit card. You’ll save face arguing with them you got some card with a major bank logo on it.
4. Grace period
Your money remains for a couple of weeks more, even after you make a purchase. This way, extra money earned through interest is added to your account. This is good especially if you have a high interest paying checking account. Moreover, you save time assuring yourself you still have money in your account. With debit cards, you lose money as soon as you make a purchase. With credit cards, you can stretch your balance for quite a while after buying.
The majority of the card companies offer their card holders special insurance like car accident insurance. There are even consumer protections that some are not even aware of. Take for example the return protection. It gives the holder the right to return the purchase whether the store accepts it or not. Some cards also offer extended warranty and price protection benefits. Some cards double the standard warranty of whatever you bought with it. With a credit card, you can be sure that you get the best additional benefits for what you purchase.