Credit cards are a good alternative in times of emergency and other times as well. As opposed to what many people assume credit cards have many benefits. People see that having a credit card is dangerous or careless if they are used to making cash payments for everything. Credit experts recommend that a person must own just one credit card. There are many advantages of possessing a credit card. In the present day, credit cards come in handy since they are acceptable by merchants globally. With the era of online shopping, credit cards are the safest mode of payment. Below is the importance of owning a credit card.
During urgent situations. One of the reasons for having a credit card is if you are faced with a catastrophe. Sometimes we might lack money. These are the times when credit cards come in handy. In case your car breaks down, there will be no need for you to rearrange your budget to accommodate these expenses.
It helps you to build good credit habits. Having no credit is as worse as having bad credit. Using your credit card frequently when making payments communicate a message to lenders that you are responsible with your money. You will also build the habit of making monthly payments for large purchases in your life such as cars and houses.
It boosts your credit score. By paying the amount of money you owe people on time, you build your credit score. Opening a credit card can help to increase your score mainly when you have a borderline fair to good credit score. You can use it to pay for your expenses and clear it off at the end of every month and your credit score will grow within a short time frame.
Tracking how you spend your money becomes easy. Credit card usage allows you to keep an eye on how you spend your money without difficulties. A lot of credit cards provide built-in expenses reports to your monthly statement for you to see areas that you are spending your money. For your regular purchases, when you use debit card and pay it off end of every month, no interests will be amassed and through this you can budget accordingly.
To ensure that you are safe from fraud. The main purpose of having a credit card is to ensure that you do not become a victim of fraud. Case in point, if a robber steals your credit card, they will not have access to your bank account. Additionally, if you inform your credit card provider as soon as possible, they will block your account and start their investigations. there is nothing that you are going to lose since many credit card providers have no liability fraud policy.