Let’s talk about the Advantages of Credit Card: A Credit card is a convenient financial product that can be used for daily purchases such as gas, groceries, and some other goods and services. However, it can also be good for purchasing big-ticket items like TVs, travel packages, and also jewelry because the money or funds for these items are not just always immediately in our range.
Meanwhile, it is a thin rectangular piece of plastic or metal issued by the bank of financial services company. Which allows cardholders to borrow with which to pay for items, goods, and services that accept for payment.
Advantages of Credit Card
Credit cards sometimes get a bad reputation, but the honest truth is they can be some key financial tool if used well and responsibly. Below are some advantages to consider before you add shiny news to your wallet
- Convenience
You need not worry about how much cash you have in your hands. Always remember that you can always use debit instead. With a debit card, you will never find yourself in danger of consuming debit that will be subject to high-interest charges if you do not pay it off each month, just like you would with a credit card. - Recordkeeping: A credit card offers a useful record of your spending through your monthly statement and also your online account, which would as well be the case if you depend on a debit card for spending. But some credit cards do usually send years and summaries, although that can be a good resource when you are doing taxes.
- Low-cost loans
Another avantages credit card is low-cost loan. When there is a purchase you need to make if you are getting your paycheck in five days. You can charge your purchase now and then pay off the charger after you eventually get paid. The main key here is to always make sure you will be able to pay off the charge by the due date.
Other Advantages of Credit Card
- Build a good credit history
Using a line of credit by making purchases. And then paying them off immediately will eventually help you get a good. And reliable credit rating from credit rating agencies - Purchase Protection
Your credit card might step in to help if you want to dispute a charge or even return defective products. And while a debit card might offer similar protection. You will have to wait until the issue is investigated before collecting your fund back.
Types of Credit Cards and How to Use Them
There are so many credit cards spreads across dozens of credit issuers. However, the first step you take in selecting your first credit card is to figure out the type of credit card you want to be based on your needs and wants. The types of credit cards out there range from your basic no-frills card which is also known as plain-vanilla.
Balance Transfer Credit Cards:
A balance transfer credit card is one that provides a low introductory rate on balance transfers for a certain period of time. But if your wish to save money on a high-interest rate balance on an existing card, a balance transfer is the perfect way to go.
Rewards Credit Cards
This is another type of credit, this is the type that offers rewards on credit card purchases just as the name implies. However, the three main types of rewards cards are cashbacks, points, and travel. Some people rather prefer the flexibility of cashback rewards. While some others like points that can be redeemed for cash or other merchandise. Yet Travel rewards cards remain a favorite among regular travelers. Because of the ability to gain free flights, hotel stays And also some other travel perks.
Student Credit Cards
These are those credit cards that are designed for students in college with the understanding that these young adults sometimes have little or no credit history. However, a first-time credit card applicant would have a faster. And easier time getting approved for a student credit card rather than any other type of credit card
Secured Credit Cards:
These types of credit cards are options for those that don’t have a credit history or who have damaged their credit status. This type needs a security deposit to be placed on the card. The credit limit on a secured credit card is equal to the amount of the deposit made on the card. But it could be more in some cases, for instance, major defaulting on a mortgage payment. It is worth noting that you are still expected to make monthly payments on your secured credit card balance.
Business Credit Cards:
This is also another type of credit card that is mainly designed for business purposes. They offer business owners an easy method of keeping business and personal transactions separate. However, there are standard business credit and also charge cards available.
Other Types of Credit Cards
- Limited Purpose Cards
- Prepaid Cards
- Subprime Credit Cards