There are so many Credit Card perks, they offer a variety of positives that for the right people, make for an excellent financial tool. Credit Cards receive a lot of bad press when it comes to personal finances as many people put themselves in huge financial debt by buying things they think they can afford to pay off. However, if you are disciplined, there are some great reasons as to why you should own a credit card. Here are some benefits to owning a credit card:
Having a credit card can help improve and establish your credit history as well as your credit score. The better your credit score, the less you will have to pay as your credit score can affect a variety of payments. Having a high credit score can mean you pay an interest rate many points lower on a mortgage loan than the rate someone with a poor credit history will pay, and this mean thousands of rands in savings over the life of the loan.
By owning a credit card, you can save money on things you purchase online. Many of the best deals available are now found on the Internet. In most instances, the online markets require you to pay with a credit card. If you don’t own a credit card, you have to pay more for the exact same product that you could have purchased online, not to mention the extra cost of having to drive to get the product.
Credit Cards provide you with instant access to money in the unforeseen event of an emergency. Normally we carry around the amount of money we think we will need for a particular day and not enough for an emergency or finding that perfect item which you just need to have. If you are away from home, stranded and needing to get more, you don’t have to worry about having cash on you for a taxi as credit cards provide an instant solution to paying off unexpected expenses.
Most credit cards provide a rewards program for when you use them, such as building up voyager miles to spend on air tickets etc. By using a credit card that gives you an award, you can actually earn money.