5 Advantages of Having a Credit Card

Are you planning on getting your first credit card?

 (Photo Credit: First Post)

There may be some well-meaning people who will discourage you to get one as they associate it with having debts. While there are some people who did experience this, it does not need to happen to you too.

Utilized well, a credit card actually has several advantages:

·         Build Loan/ Credit History Record

By having a credit card you can start building a good loan history. Using your card smartly and paying on time, will get you a good record of credit which may be beneficial in the future if you want to get a bigger loans from your bank.

Tip: To be on top of your finances, make sure you use purchase wisely and put payments in on time.

·         Travelling

If you are a frequent traveler, a credit card can be very handy. Swipe your card instead of bringing cash and risk it being lost or stolen.

Tip: If going overseas, check with your bank if they have fees on purchasing products in a different currency.

         Internet Purchase
 

Online stores are the trend these days and you can purchase almost anything and any brand. Even hotels, restaurants, vacation trips and others have online deals that you can pay online via your credit card.

Tip: Make sure to pay online over secure servers only.

·         Tracking of Expenses

Every transaction you have using your credit card are documented. When the bill comes in, you can see your record of purchases so you can keep track of where your money goes every month.

Tip: Check each detail of your bill to make sure there are not discrepancies or unauthorized purchase. If there are any, contact your bank immediately.

·         Rewards

Most cards give a lot of incentives for regular use. Some rewards include rebates on gas, groceries, airline miles and 0% interest on purchases.

Tip: Be aware of your consumption habits and try to get a card that will give you rebates for those.

Be smart when using your credit card and be on top of your finances by paying on time. Doing this, you will reap all the advantages of having a credit card without being trapped by debt.