Credit cards are, for many, a taboo, a toxic financial product for our finances that we must avoid at all costs.
The reality is that this is not entirely true, credit cards are good! What is bad is credit card debt (if you have debt visit their official website and you will be able to eliminate it!). Today we will talk about the advantages of credit cards that, correctly used, make them an excellent ally for your personal finances.
They help you build your credit history
Generally, the first credit a person has access to is a card. Using it properly will allow us to generate a good credit history, which will result in access to better sources of financing.
Everyone, at some point we can benefit from using some credit, either to buy a house, a car or start a business. Having a good track record will allow us to be credit subjects and access better interest rates and more favorable conditions.
They are safer than cash
If you lose money in cash or are a victim of theft, it will be virtually impossible to recover it. On the other hand, if you are a victim of fraud, your card is lost or stolen, banks will be obliged to return all charges you do not recognize. This Condusef article explains in detail the cases in which the bank must, by law, give you your money back.
They help you identify your expenses more easily
Has it happened to you that after making several purchases paying in cash, you have trouble remembering exactly what you spent your money on? Credit cards help us avoid that problem, since all our expenses are registered and are shown either in our electronic banking or our account statement. This information will allow you to identify what you spend your money more easily on.
They make it easy for you to shop online and in other countries
Credit cards are a universally accepted means of payment. In the vast majority of businesses, whether physical or online, around the world, you can pay with your credit card.
They allow you to buy months without interest
Another advantage of credit cards is the possibility of transferring purchases to months without interest. This allows us to make purchases of larger amounts, without seriously affecting our monthly budget.
Despite being an interesting benefit, we recommend you to be very careful. It is important that you keep a record of all the purchases you make months without interest so that you make sure that they will not affect your spending budget.
They offer rewards programs
In addition, the vast majority of cards in our country reward you for using them. Almost all credit cards are accompanied by a rewards program, in which you receive a percentage of your purchases through points programs or even cashback (money).
If you decide to use them, always remember to pay the total amount so as not to generate interest. This way you will not pay any interest and you will be getting benefits in return.
They offer you exclusive benefits
To conclude the advantages of credit cards, let’s talk a little about the exclusive benefits they can offer.
For example, some cards offer you access to VIP lounges at airports or travel insurance. Some others allow you to buy, before the general public, tickets for events such as concerts, festivals or exhibitions.
In addition, on many occasions banks that have agreements with some businesses, launch exclusive promotions for certain credit cards.
As you could already realize, these advantages of credit cards can turn it into a tool of great help in the management of our finances, everything will depend on the use that each person makes!
Be careful, misused will definitely become our worst enemy. Well used, in an invaluable ally! What alternative will you choose?
In this article of our blog, we share some tips that will help you use credit cards in the best way, you can not miss it!