Here are 9 Reasons to Get a Credit Card Today.
Having a credit card at your disposal can be quite a useful tool for all of the reasons outlined here. You will also notice that many of the reasons compliment each other – for example, earning rewards for travel while keeping on top of bills, or building credit when you use your card in an emergency. A credit card is helpful for all sorts of situations, and there are certainly more than we have listed here. These however, encompasses the most important reasons to get a credit card today. Don’t you think it is time to simplify your life?
1. Earn Cash Back or Rewards for Purchases.
Use a cash back credit card to receive a portion of the purchases you make back. Some credit cards have different percentages based on certain categories that you spend in, and if you use your credit card wisely you can make a chunk of money back at the end of the term. Also, if you use a rewards credit card you can use points towards vacations, gift certificates, kitchen gadgets and more. Sometimes rewards cards also let you redeem for cash off your next credit card bill. If you were already going to be spending the money anyway, a cash back credit card is simply putting some of that money directly back into your pocket.
2. Build Credit for the Future.
When you apply for a large loan, for instance a car loan or a mortgage, you need to have a credit history. They will use this history to determine how much you will be able to borrow and pay back. Without a credit card, you are not building a credit history and therefore can be delayed in getting a loan when you need it. It takes a long time to build up a solid credit history, so the sooner you start (with good habits), the sooner your history is established. Read more on Easy Tips to Fix Bad Credit Scores.
3. Purchases on the Internet.
These days, most things you might want to purchase can be found on the internet. Often, there are also great deals to be had on there, and they might require a credit card to claim those deals. Using a credit card on the internet is an easy way to capitalize on all the things to be had worldwide.
4. Emergency Purchases.
If you find yourself in a bind money-wise, a credit card can be a good temporary solution. Use it to pay off your hot water tank emergency, and then you have until the next billing cycle to find some money to pay it off with. You could also keep it on the credit card until you are able to pay it, as earning some interest on the card is preferable to having no hot water.
Even if you don’t encounter an emergency that you have to put on a credit card, having the ability to charge something that you don’t have to pay off in full immediately can be quite convenient. The money does not leave your bank account until you are ready to pay for it, rather than paying for something out of your debit account and having the money taken right away. If you are making a large purchase, you then have the money still in your account to use for smaller items.
It can be quite a hassle if your credit card gets stolen, but in this day and age it can also often be resolved quickly, sometimes even without a loss of money to you. Without a credit card, your bank account can be wiped out by someone, but with a card the company can often shut off transactions before it is used, or cancel purchases so you are not required to pay. In the instances of buying online, some credit cards even offer purchase protection for you if the item never shows up.
Taking a credit card on a vacation is much more secure than taking a pile of cash, and then you also don’t have to worry about running out of money when you are out of the country. Most credit cards are accepted worldwide, and you can use them with only a small exchange fee, which is often less than you would get charged converting your money at a local bank on vacation. And if you paid for that vacation using points earned from your credit card, that means your card is even more versatile.
8. Save for a Vacation.
Similar to earning cash back with a dedicated credit card, you can use a card that is geared toward earning travel points to put towards your next sunny vacation. If you set up recurring payments like cable and cell phone bills on your credit card, and use it for all purchases you make, you can save points for a specific destination or item on your bucket list. Because you cannot spend the travel points like regular money and you do not earn a credit on your bill that can quickly be swallowed up by more purchases, these points are earmarked for travel only. It makes going away that much closer to your reach when you don’t have to worry about paying for the flight. One thing to be aware of is black-out dates, certain times when you are not allowed to fly using your points.
9. Managing your Bills
Set up a recurring payment on your credit card to avoid missing any monthly bills that come in. Cell phone, cable, property taxes – any bill that is paid monthly and can be paid from your credit card is a good idea. This way you don’t forget to pay them, and you also can earn points or cash back on the card if you have that type. Bills that are the exact same amount each month (or payment period) work the best for this sort of system, as they will be fully paid without worry, but even if you have a bill that is a different amount each time you can put it on a credit card. You just have to make sure you are paying the remainder as well each time the bill comes in.
Thank you for reading this article and if you would like to share any additional reasons to get a credit card today please let us know in the comment section below.