5 Benefits of Having a Credit CardGet extra protection when shopping online and manage your spending with a credit card.
A credit card is extremely useful when you want to manage your spending, especially if you know how to manage your usage. Since the option of paying with a
If you’re still having doubts as to why having a credit card is a good idea, these 5 benefits might convince you.
A credit card builds your credit score
One of the reasons people get a credit card is to build their credit score. If you pay
You can shop securely
When you shop, it’s safer to pay with a credit card than with cash, a debit card, or a check because you are guaranteed to get your money back in case there are problems with your transaction. In fact, you needn't worry even if the credit card company goes bust. Your credit card provider can and will give your money back, especially if your card was used fraudulently.
You can borrow with no interest fee
Isn’t it nice when you can borrow money and not have to pay interest? There are some credit cards that offer 0% interest loans. Just make sure you pay the minimum monthly dues and clear your balance before the 0% interest rate offer ends or you’ll be charged with the normal interest rate.
You can earn perks while you spend
With a credit card, you get to enjoy the benefits and exclusive perks that come with it. From frequent flier miles to discounts and cashback, credit card companies offer incentive programs based on a number of purchases you make. By using your credit card, you could get points that can be exchanged for coupons and free flights. Now isn’t that a sweet deal?
You can transfer your other balances
Transferring your balance is one way to avoid being trapped in credit card debt. By taking out a new card, you get to cut that annoying interest rate to zero by transferring your debt onto a 0% balance transfer card. Just pay your debt before the end of the 0% period, after which, you'll be charged normal interest rates again, which kind of defeats the purpose of transferring your balance.
A credit card is beneficial in a lot of ways, as long as you manage your spending wisely. If not, credit cards can put you in debt. So make sure you think twice before getting a credit card. At best, it could increase your spending power; at worst, it could teach you some important lessons about budgeting and finance management.
Make smart decisions by comparing credit cards with GoBear today!