Are you willing to make transactions through a credit card, but afraid to deal with various charges? If yes, then we have created this article to reveal the top benefits and advantages of using a credit card for your next transaction.
When highlighting the reasons, a person uses a credit card, they could vary from availing cash back to bonuses and rewards. Having said, there are various benefits of a credit card that you might have never thought about while making purchases.
Read along to discover why you should opt to use a credit card for your next transaction:
Acceptance across the Globe
When traveling abroad, running out of funds is a common mishap faced by many travelers. Also, a debit card at times becomes unacceptable by many retailers. However, a credit card comes in handy when making transactions of different kinds.
Be it renting a car, reserving a hotel suite, or almost anything; using a credit card for your next transaction can make things hassle-free. Also, a reason many car rentals prefer credit card is that they could charge for any damage caused to the vehicle.
However, in case of a debit card, they would have to hold in few hundred dollars in your account. On top, when traveling abroad, a large number of merchants don’t accept payments through debit cards, even if it features a logo of a well-known bank.
Achieving a Good Credit Score
If you owe no credit or trying to build an impressive credit score, then using a credit card can do the job for you. The reason lies in the fact that credit card companies report customers’ payment activities directly to the credit bureaus.
On another hand, debit card usage doesn’t affect even a bit of your credit score. Having said, a credit card is a good tool to build a robust credit score. While you don’t always strictly need good credit for a loan its certainly makes a big difference when looking for services such as business loans and mortgages!
Achieve Flying Miles
A remarkable benefit of using one of the best credit cards is earning flying miles. It was back in the 1980’s when the American Airlines began offering customers a chance to earn flyer miles by using an affiliated credit card.
But, as of today, almost every airline offers at least one credit card to rack up miles at a rate of around one mile per dollar spent. One mile for each dollar from simply using your credit card for your next transaction. The price of an airline ticket eventually drops for you as you redeem miles, you may even earn enough air miles for that trip to New York. Not only this, many credit cards offer flyer miles at the time of signing up.
Undeniably, when you purchase with a debit card, an amount is immediately deducted from your account. However, when you use your credit card for your next transaction, the money remains there in the checking amount for a couple of weeks when you pay the credit card bill. Having said, holding on the funds for an extra time could be helpful in many ways, as the time value of money affects this scenario greatly.
A large number of credit cards offer a plethora of consumer protections that only a handful of people know about. The coverage includes car rental insurance, travel insurance, and notably the products’ warranty that may exceed manufacturer’s warranty.