Credit cards have revolutionized the world of personal finance by eliminating the need for physical cash to make purchases. Unfortunately, they have also come to be viewed negatively with many blaming them for huge amounts of debts or out of control spending. While this may be true, the key is to use them responsibly and exercise some control. Following this can help you enjoy the numerous advantages to using credit cards and even find them to be a life saver.
Top merits of credit cards
Ease of use
You do not have to carry around cash or find the nearest cash point or ATM to buy or pay for something. They are easy to carry around and can be used while traveling as they are accepted in most locations including out of the country, saving you the hustle of having to carry foreign currency.
It is much safer to carry your credit card than a chequebook or cash. In the case where you do lose your credit card a simple call to your company will have the card canceled and another one sent to you. If the same thing were to happen with your chequebook or wallet, then you would risk losing all your money and would even need to change your account details.
Credit companies take it upon themselves to help you resolve purchase disputes, saving you the trouble of doing it personally. This insures against having to pay for defective goods or even having to pay for a product that never arrived.
Rewards and perks
Credit cards come with rewards and perks for customers. Sign up benefits such as a percentage back on all purchases or discounts on certain purchases mean you can save some cash. Credit card companies also give their customers incentives to beat out competition by offering rewards on purchases such as frequent flyer miles or points for a certain amount spent. These points can, later on, be redeemed into gift cards. Choose a credit card company that offers the most rewards.
Keep track of expenses
If you find it hard to keep track of what you buy and how much you spend on specific purchases, then a credit card might the answer. At the end of the month, every credit card holder receives their monthly bill detailing all expenses and purchases. This can help you reel in those wayward expenses that you never noticed before and could even end up saving you some cash by helping you stick to your budget.