Real Benefits of Having A Credit Card
The evils of credit cards? Not if one knows how to manage it wisely. In my opinion, a credit card is not something of a luxury but something which can be of good use and can be put to good use for the benefit of the card holder. I do carry credit cards and I do carry them for certain purposes. As you read on, you will see what benefits I get from having a credit card at hand. It goes without saying that most of these benefits would only be enjoyed at its optimum provided you are able to manage the cards wisely.
Small and Handy
I would prefer carrying a credit card with me, which is equivalent to the size of my business card, compared to carrying plenty of cash around and risk being robbed of all the cash. Even if you are robbed of your credit cards, your liability is limited if you notify the credit card issuer immediately. On a worst case scenario, it works as a cash advance card but notice that I said worst case scenario because you wouldn’t actually want to utilise cash advance if you can help it because the rates are a killer.
Consolidation
A credit card helps to consolidate your purchases and spending into one monthly bill. You can choose to pay your recurring bills like utility bills and insurance premium through direct debit from your credit card and thus need not have to go through a few payment processes.
Credit
Assuming you pay your credit card bills in full on every monthly due date, you can actually make use of the credit terms (usually 20 days or thereabouts) to allow your monies to earn interests elsewhere during that period. It may be little but money in your pocket is better than money out of pocket.
Rewards
No credit card comes without some form of rewards or benefits nowadays. Be it rewards points, discounts or even cash rebate, you are getting something extra just to use a card. An example would be where you need to pay for your electricity bill or fill up your car’s petrol tank. You can choose to pay by cash and get nothing in return or you can choose to pay by card and get points which you can accumulate to redeem gifts later or a cash rebate. It makes sense to use the card for the ordinary spending which you incur each month. If you own a company, consider using your credit card to pay for the utility bills of the company and get the company to reimburse you. You will rack up your rewards or cash rebates faster that way.
Perks
Most, if not all, credit cards now come with insurance coverage for certain purchases. Most common of these would be travel and product liability insurance. If you were to purchase an air ticket using a credit card, chances are you will be given free insurance to cover loss of baggage, missed flights or even against personal accident. You won’t get this kind of perks just by using cash for your purchases. Student credit cards also have special privileges, obviously catered to students.
Emergency
I think one of the most important benefits of having a credit card would be the availability of credit (assuming you still have credit) to place that deposit for medical emergencies at hospitals. Most private hospitals require a deposit and having a credit card would be handy in times of need.
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