5 Perks of Using a Credit Card
If you’re part of the crowd that’s not really into using credit cards, maybe you just don’t know what you’re missing. Certain perks come with using a credit card that you just don’t get to enjoy with any other payment method. Here are Five:
1. A Credit Score Boost
One of the biggest benefits of using a credit card is that you can enhance your credit profile and credit score. Nowadays, you have to have a credit card, and you have to use it to build trust with the creditors. They will look favorably upon you if you keep your utilization to a reasonable percentage, and they will reward you for timely payments. You’ll have easier access to the things you need in life like a mortgage or a car.
2. Cash Back
Another perk of using a credit card is the cash back perk. Some card companies will allow you to earn a certain percentage of your purchase back on certain items such as groceries, gasoline or restaurant visits. Some card companies allow you to earn on every purchase you make. Cash back is wonderful incentive to pay by credit card, wouldn’t you say?
3. Purchase Protection
Purchase protection is available when you use a credit card. You may not have the same level of protection if you use cash or a check. There’s an easy process that you can go through with your credit card provider if you do not receive your product, or your product arrives in a poor condition. Purchase protection gives you peace of mind and makes your shopping experience more enjoyable.
4. Paper Trails
When you use a credit card for your purchases, you create a paper trail. A paper trail may be necessary for tax purposes or to prove that you have been staying somewhere or paying for a service for a certain amount of time. It’s always best to use a payment method that provides you with the most documentation. You’ll definitely see the charges on your credit card statement.
5. Theft Protection
Finally, you have theft protection. If someone steals cash out of your hands, you have no recourse, but if someone steals your credit card, you have protection against the purchases that person may make. You will also receive a new card very quickly so that your purchasing power will not be interrupted.
Now that you know of these five reasons to use a credit card, you’ll probably want to use one more frequently. Think strategically about each purchase that you are making and use the credit card when it will benefit you. You’ll find a lot of reasons to reach for the plastic instead of using another form of payment.