12 benefits of using a Credit Card

There are many leverages of credit cards if you are analytical with your spending, pay your card balance off completely every month and know how credit cards work. We’ve collated certain points to find 12 ways credit cards can make your life smooth.

1. Rewards programs

There are a lot of credit cards that have excellent reward programs, but they need to work for you. There is no point buying things you don’t require just getting points. So, contemplate how you use your credit card and then select which program would benefit you most. You can spend credit card rewards points on all kinds of things, from flights and car bookings to petrol and grocery shopping.
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Also, inquire if there is an annual fee for the card. Sometimes these can be paid for with points but you required to make sure you would earn enough points in the year to pay off the cost and get something with the remaining points.

2. Frequent Flyer miles

If your lifestyle is one that muddles a lot of travel and time bushed on airport lounges, then a Frequent Flyer credit card might be the correct option for you.
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These cards are very identical to rewards cards in that you earn points by making investments, but they are made with the purpose of payout said points on flights, lounges and janitor services. You can also spend to upgrade your existing economy seat to business and first-class.

3. Signup bonuses

Large no. of credit cards offer appealing bonuses that reward you for signing up with them, such as huge amounts of bonus points, complimentary flights, low or baseless fees and other long-term perks, such as promotional and abated interest rates.
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However, not all cards with a signup bonus are good value, so you need to check the terms and conditions deliberately before applying.

4. Cashback

In comparison to Rewards cards, which earn you points for spending money on peculiar things, cashback cards pay the money back into your account. These cards will emancipate you money based on your monthly expenses, and the balance you’ll get back will depend on the credit card’s cashback rate. The right card will earn anywhere from 1% to 5% back on your expenses, sometimes depending on the place where you shop can give up to 10% also.

5. Complimentary travel insurance

Most credit cards come with a number of customer protections, including rental car insurance, purchase protection insurance, elongated warranty insurance and even travel insurance. These complementary additional protections can save you an amazing deal of time and money as well as peace of mind, so it might be worth looking for credit cards that propose travel insurance.
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6. Price protection insurance and purchase protection insurance

As well as travel insurance, favored features that come with credit cards are price protection insurance and purchase protection insurance.
Price protection insurance is a type of insurance that, if you can show proof, will compensate the difference to your credit card account if a product you purchased has dropped in amount.
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Purchase protection insurance, on the other hand, encompasses new items that you purchase against theft and accidental damage for up to six months from the date of purchase.

7. Fraud protection

With the large no. of scams and phishing attacks that are occurring these days, it is bolstering to know that the wide majority of credit cards on the market cover security and fraud protection, keeping your money safe from fraudulent purchases.
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For example, Visa credit cards have the ‘Verified by Visa’ technology embed in them, which immediately monitors your account for doubtful purchases. If your card is used suspiciously, you can directly notify your credit card company. By this means you won’t have to pay for that transaction while they are issuing a new card for you.

8. Convenient and safe online shopping

Not only are credit cards easy to use for daily point-of-purchase shopping, but they’re also much simpler to use online. As mentioned above, most credit cards now come with many layers of security and fraud protection, so you’re at the lowest risk of losing your money when making online purchases.

9. Less cash on hand

We are fast emerging as a cashless society, and credit cards – with the help of digital wallet technology in android phones – are more famous than ever.
Credit cards are not only a more smooth payment option for a lot of people, but they are also secure; a credit card can be quickly canceled if it is lost or stolen.

10. Works in any currency

You can pick up your credit card with you overseas in order to make acquisitions in a foreign nation; you will be charged a relatively minor currency conversion fee in the meantime.
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11. Build your credit score

Bearing a credit card can assist you to frame up your credit history and a credit rating – if you make sure you pay off the balance in full every month and keep your purchasing at a low level. A great credit score will make it much simpler and less stressful to apply for various types of loans in the future, for example, car loans and home loans, so practicing good repayment manners with a credit card can be a good way to build a positive credit score.

12. Interest-free days

The final advantage you can get from using a credit card is the number of interest-free days on offers. The max of credit cards offers 55 days interest-free, with some as high as 62. This means that you can have up to 62 days where you are not owed interest on any purchases.
Use it Wisely.

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