Benefits of using credit cards

Considering applying for a credit card?

The advantages of using credit are described below.

card to make purchases.

Receive rewards for the use of your credit card

Today, almost all types of credit cards available have

some kind of reward related to it. Offering benefits

and gifts is the number one method used for credit

card companies to apply for business. They never

they go head-to-head, offering lower interest rates. When you

pay your credit card balance every month, you will get

a huge amount of “rewards”. On the contrary, if

refuses to make your payments in full, the amount of

money you end up paying in interest will probably go to

it costs you more than the ‘rewards’ you receive.

There are many different types of reward credit cards.


Some of the most popular include:

Cash back on purchases – Annual common

savings are 1% on all purchases. At the end of the year

you will receive credit for the full refund or a

A refund check will be sent to you.

Air miles – You will win a frequent one

traveler mile for every dollar you spend. Miles are

it is usually worth two or three cents each.

Gas refunds – When you use your credit card to fill up your car,

Receive a discount on gas when you use this type of

credit card.

Discounts in shops and restaurants – These types of credit cards offer savings when participating

restaurants and shops when used.

Free merchandise – Many credit cards offer

seasonal rewards for cardholders.

Some more advantages of using credit cards …

Eliminate stress at the airport – When you use a credit card to buy an airline ticket, it is

viewed as non-suspect by the FAA. As a result of terrorism,

using cash to pay for a ticket is considered very

suspicious and will likely result in your being detained and questioned.

Protection against bankrupt airlines – Using a

credit card to buy a plane ticket offers you

protection against loss of money in case the airline


Suspend payment rights – One of the best

The advantage of using credit cards to make purchases is

the ability to suspend payments in the event that an item

it is never received or broken. For example, let’s say you buy

something on the internet, but you never get it,

you can contact your credit card issuer and initiate a stop

product payment.

Improve or rebuild credit – It does not matter if you have bad credit or no credit, when it is used

Responsibly a credit card is one of the most effective means of improving credit

grades and scores. Responsible use of the credit card means making punctual payments

every month and without exceeding your available credit limit. You do not have to

pay your balance in full, right on time. A good rule of thumb is don’t spend

more than 15% of your available line.

Extended warranty, protection against theft and damage – Many credit cards offer additional guarantee, protection against theft and damage on purchases made with the card.

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