Most people use credit cards because money feels more accessible and it is far easier than always needing to carry cash or worrying about your current bank balance. Unbeknownst to most people though, is the fact that credit cards carry a substantial range of benefits, especially in cases of emergencies or in creating a mind-set of healthy budgeting.
Organisation
Though it may seem counter-intuitive, credit cards can actually help you with budgeting. Some credit cards offer pre-selected category facilities whereby one can group purchases by category and see all the totals of each group in their monthly statements. Being able to see the totals of each group not only saves time by not having to manually group each payment, but excessive spending habits are also much more evident.
Security
Credit cards offer substantial protection for your money. Lost cards can be reissued promptly, security alerts are efficient, if your card is stolen banks won’t hold you responsible for any charges, and credit cards have a variety of built-in security features, which maximize the safety of your money.
Protection
Though this will be dependent on your credit car issuer, many credit cards will come with additional protections such as car rental insurance, travel insurance and other perks.
Credit history
The regular and prompt payment of your credit card helps build a healthy credit history which makes it easier to borrow money, buy a house or own a car. Put simply, making regular, on-time, payments on your credit card will lead to a higher credit score.
Potential savings
Credit cards can actually help you save money. If you have a good credit history, the rates for borrowing money will be less and the cash back earned from using your card can help you save thousands. Of course, the airline miles and discounts are also a sizable bonus.
Emergencies
Credit cards are extremely useful in situations where money is tight, and you suddenly have a car that needs a new engine part or if you end up in hospital. Unexpected charges can be tough to pay on the spot, but a credit card will allow you to pay it off over a period of time.
Whatever your stage in life, there are lots of great reasons to get and maintain a credit card – the benefits outlined in this article are just the beginning!