Out of all the best you get when you get yourself a credit card–you get yourself an initial bonus opportunity which is a cashback. The idea is simple, once you use your card, you can get 1% of your purchases rebated hence the term cash back because you can accumulate the money and get some cash back. You purchase while getting some cash in return. Depending on your choice, some cards even offer up to 3% to 5% or even as bigger as 6% cash back on selected purchases, though beware because some lucrative offers involve quarterly or annual spending caps. The best cash-back cards are those that charge minimal fees and interest while offering a high rewards rate.
Another great reason why you should get a credit card is for emergencies. Some professionals may see credit cards as additional debt but for young earners in their primitive stage of careers, especially when it is quite challenging to sustain a good amount of savings for emergencies this is when a credit card proves to be a practical and handy tool. Firstly, credit cards give you timely access to money and on the other hand, they will give you up to 45 days of the credit-free period to plan for repayments. In spite of lower savings, a credit card would give you the confidence to manage many of your eventualities in life.
One of the many known and trusted perks of having your credit card is a lot of benefits and discounts will surely come your way. Credit cards are versatile financial tools and credit card reward options are almost endless. Your credit card is your first line of credit, these plastic cards are designed to allow cardholders to earn points per dollar spent in various cases. Numerous reward credit cards provide bonus points for certain types of purchases like groceries, restaurants, or even gasoline. When you reached specific earnings thresholds, that is when you can get your points redeemed for travel, gift cards from retailers and restaurants, or merchandise items through your credit card company's online rewards portal.
One greatest reason why many people are afraid of handling money is because of various cases of fraud that leads to losses that can be ultimately avoided when you use your card. Paying your purchases with your card makes it easier to avoid fraudulent scenarios. When your card is used fraudulently, you are not out of money because you can just notify your credit card company of the fraud so that you won’t need to pay for the purchases or transactions you never made while they try to resolve the matter. What matters the most, in this case, is that you have people you can directly report to, which makes your money more secure.
The last, and perhaps most important benefit you can get when you get a credit card is you are able to learn more and manage your money more responsibly. Knowing the pros and cons of your card, makes you contemplate every bit of purchase you make. Responsible use of credit is critical financial learning which helps you to manage your personal finance in an efficient way for future responsibilities. Contrary to popular belief, when one knows how to use the card plastic responsibly, you're actually much better off paying with a credit card than with a debit card and keeping cash transactions to a minimum.
Author Name: KYLENE CLAIRE AYING
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