If you go to any financial expert for advice, he’ll tell you to keep away from using credit cards. Well, they would justify it with reasons, and each of them would be correct. It is so because a lot of credit card users use the credit cards irresponsibly. It could put them in a situation of debt.
So, why are we motivating you to use credit cards? It is because credit cards have incredible benefits associated with it. So, herein, we’ll discuss some reasons explaining why you should be using a credit card. Based on these reasons, it will be easier for you to understand the role and the importance of having a credit card.
Aren’t cashback the best? You can get cashback on making purchases with your credit card. However, to avail of the cashback benefit on the credit cards, you’ll have to meet their set annual or quarterly spending caps.
In general, the best credit cards of this type will undoubtedly be the ones that charge you a minimal interest and yearly fee in exchange for a high rate of rewards. Hannah, an accounting expert, offering online homework help with TFTH, says that she has the Fidelity credit card, with which she bags 2% of the value of the purchases as rewards on each of her spending. The Fidelity card is undoubtedly a good alternative for cash back, but the downside is that you will have to deposit the money in your Fidelity investment account only.
For these cards, you have to spend a particular amount in the initial few days of opening an account. Some cards lure applicants with miles or bonus points, which can be used for merchandise, gift cards, travel, or statement credits. Katie, who is a math tutor with TAE and offers online do my homework service by TAE says, that she used her earned good bonus points on her card. So, she exchanged them for an Amazon gift card of 50 dollars. The debit cards never really offer an initial bonus to the customer. Moreover, the chance of earning a reward on the debit cards is almost negligible.
There are umpteen available reward options available for you. You can use a co-branded credit card in association with an NPO like AARP, a clothing store, or some hotel chain. It will allow you to utilize your day-to-day spending to earn more valuable rewards every day. The perfect way to avail of the best reward points card is by opting for the one that is more closely related to your pattern of spending. If you make a mistake here and try to alter your spending habits to avail of the benefits of the card, it just wouldn’t be as productive as you would have hoped it to be.
So, if you are already spending at a particular hotel or prefer a specific brand of shopping, why shouldn’t you get a card that only encourages your current pattern of spending. It will improve your chances of getting perks, discounts, and rewards by multi-fold. Hanna, who offers an English essay writing service with EssayWriter4U, says that since she is a regular shopper, she opted for a credit card, which brought her more shopping-based rewards.
Frequent Flyer Miles
As part of this scheme, for every dollar spent, the credit card holder earns a mile. In some lower-card alternatives, you might avail a mile for every 2 dollars spent on the purchases. However, these cards wouldn’t charge you a yearly fee. But, how useful this card proves to depend on how you choose to utilize it mostly.
So, be careful in choosing the airline ticket that you buy with your miles or points. A lot of frequent flyer credit cards become hugely valuable via their introductory bonuses that are mileage-based. In most cases, these bonuses would be large enough to make up for the 50% to 100% of your award fight. Sonya, an associate, working with TrumpLearning, shares her experience saying that her earned flyer miles helped her sponsor a fully-paid one-way ticket to Amsterdam.
When shopping from a credit card, you lose the money only at the end of the month when you pay the credit card bill. It can be beneficial. Do you know how? Firstly, though minuscule, this time value for your money is undoubtedly helpful in saving you some money. When the final payment is delayed, it makes the overall purchase a tad bit less expensive than otherwise.
Additionally, the cash will stay in your account for a more substantial amount of time. So, if you utilize your checking account, which is interest-bearing, you’ll earn a certain amount of money as interest during this period. Over time this will accumulate to one meaningful amount. Secondly, when you regularly make your payments via credit cards, it is easier for you to keep a close check on your account balances.