6 Perks of Using a Credit Card

Cash. Debit cards. Online payment systems. Credit cards. With so many ways to pay for things, how do you know which to use? The answer is simple. Only credit cards are as rewarding as they are secure. Using a credit card helps you build credit and may help you form good spending habits. And there’s more! Read on to see all 6 perks of using credit cards. 

1. Credit cards offer protection. It isn’t easy to track cash purchases. But, when you use credit cards, you can go online or look at your credit card statements to see where and when each purchase was made. This helps you not only stay on top of your spending habits but also spot charges you didn’t make. Credit cards typically offer built-in protection against unauthorized use. If your card is compromised, they can cancel it and send you a new credit card. Travel insurance, extended warranties and purchase protection may also be other perks of using credit cards. 
2. Credit cards can improve your credit score. Your credit history begins when you open a line of credit. To build good credit, you have to show credit bureaus that you can use the line of credit responsibly. Credit bureaus track whether you pay your credit card balance by the due date every billing cycle. Avoiding credit card debt is key to a high credit score. You can also fix past credit mistakes by showing that your spending habits have improved. And, if you need a fresh start, a secured credit card, which requires a deposit, can help you rebuild. 
3. Credit cards are universal. Whether you’re grabbing lunch down the street or shopping online, your credit card works just about everywhere. Traveling across the country or abroad, you may also need a credit card to reserve a hotel room or rental car. Even if it’s lost or stolen, the credit card company can help you out, no matter where you are. 
4. Credit cards back you up in emergencies. Things break down. Accidents happen. At any point, you could be hit with unexpected expenses. Credit cards let you borrow the funds you need now and pay them back over time. Just remember that interest charges will apply. 
5. Credit cards help you manage spending. A credit card statement is a valuable budgeting tool and a great motivator for changing your spending habits because you can see exactly where your money was spent and what you have left. If you pay off your credit card balance by the due date every billing cycle, you may be able to avoid interest, fees and late payments as well as credit card debt.
6. Credit cards are rewarding. Some rewards credit cards have rewards programs that offer travel rewards points toward airline miles and hotels. Some also offer cash back on your everyday purchases. Avoid high interest rate cards and look for lenders with good interest rates and low or no annual fees.