You will earn lots of benefits as soon as you acquire a credit card as long as you are disciplined with your spending, proper payment of your balance every month, and understand the rules of a credit card. However, if you find it challenging meeting the obligation regarding the monthly fee of your credit card, then you better off cut it up. Without knowing, credit cards can get you into severe financial trouble, especially impulsive buyers. To avoid this, ensure you prioritize paying off your balances. For a self-disciplined individual who manages their spending, there can be some significant advantages as far as using a credit card is concerned. Here are ways credit cards can ease your life.
More Flyer Miles
If you love to travel, Frequent Flyer credit cards are the right credit cards to build credit for you. Frequent Flyer credit cards are almost the same with rewards cards where you earn points by making purchases. However, they are made to spend specific points on flights and lounges. Similarly, you can use points to upgrade your existing economy seat to business and first-class. Otherwise, for those who like spending points on things like gift cards and other daily goods, this will mean that Flyer card probably isn’t right for them because the rates for these purchases are comparatively poor.
Some of the credit cards offer fraud alerts serving as a safety net if someone experiences a theft of their card or even information when traveling. In the case of fraudulent activity, a signal can be transmitted through a phone call, text message, or email and the transactions can be stopped. Since a credit card is not linked to a checking or savings account, there are fewer possibilities of the thief gaining access to the money in these accounts.
Most financial institutions have got security processes in place to safely guide you if your card has been lost or stolen or when you suspect your account has been used for a fraudulent transaction. When a credit card is used fraudulently, don’t worry, notify your credit card company of the fraud and don’t pay for the purchases you didn’t make while the credit card company resolves the matter.
Paying using your credit card can significantly reduce losses from fraud. Average expenses for which you have scheduled online payments and mailed checks may bounce, leading to insufficient funds fees hence making your creditors unhappy. These late or missed payments can dramatically lower your credit score even if it is not your fault. It takes time for the fraudulent transactions to be reversed for the money to be restored to your account while the bank investigates.
Help Build Your Credit Score.
The repayment history of your credit card account can make up a crucial part of your credit file. Therefore if you keep your account in good condition, the very information will assist you in finding credit cards to build credit score hence increasing your chances of approval for other products.