There are many positives and benefits to having a credit card, and credit cards are what I use to make almost all of my transactions. I hardly ever use cash because I just do not see the benefits of using it. Instead for me, credit cards have so many benefits so I see no reason not to use them. Yes, there are reasons to stick to cash too though, but we will not be discussing those today.
Below are six reasons for why you should look into getting your first credit card:
One reason for why many people get a credit card is to work on their credit score. If you know how to correctly use a credit card, you can easily increase your credit score.
This is important because it can help you get approved for loans later on (such as a house) and you can qualify for a lower interest rate most likely as well.
2. Some purchases may be protected when you use your credit card.
If you purchase something with your credit card that didn’t live up to it’s expectations, then you may be able to dispute the purchase with your credit card. I have had to do this in the past and it’s always worked out well. Of course, you do not want to take advantage of this and start stealing money from merchants, so always be ethical with how you use this credit card benefit.
3. If you lose your credit card then it most likely won’t be as bad as losing cash.
Unlike with cash, you can lose your credit card without losing everything. No, no one wants to purposely lose their credit card. However, if someone stole your purse or wallet full of cash, you would most likely just be out of luck and lose all of that money.
4. You can easily track expenses with a credit card.
One thing I definitely love about using a credit card is that you can easily track what you spend your money on. There is never a question for why my spending is where it is at because I can easily log into my credit card account and see all of the transactions.
I can see where all of my money is going, what I need to improve on, and more.
5. You can use a credit card to earn rewards points.
Another reason why you should look into getting your first credit card is because you may be able to earn rewards points. There are many credit cards out there that have a rewards system. You may be able to earn free vacations with your credit card, cash back, free gift cards, and more all because you spent just like you normally with your credit card.
6. Your credit card may offer insurance.
Many credit cards these days offer a few different types of insurance if you use the credit card to make the purchase. You may receive travel insurance in case something happens and the trip needs to be cancelled, car rental insurance so that you don’t have to buy expensive insurance when renting a car, and more.
Do you have a credit card? Why or why not?