Credit Card Benefits
Many people say that credit cards are evil. I disagree. If you are able to manage your credit card sensibly and wisely, you can obtain a lot of benefits from credit cards. If you do not know how to manage it, you are likely to get yourself into credit card debts. But used properly, you are likely to enjoy the perks that come with a credit card.
Knowing why you want to have a credit card and maximising the benefits of credit cards help you in this area. I carry a few credit cards for different purposes. Read on to find out what credit card benefits I get as I use the credit cards I have. Now, the rule of thumb which is pretty obvious is that the benefits of using a credit card are at its optimum when the credit card purchases are paid timely.
Small and Handy
Would you rather carry a wad of cash or a credit card the size of a business card in your wallet? Certainly the latter. That prevents the risk of being robbed of your cash as well. In the worst case scenario of being robbed of your credit cards, your liability is limited. Just make sure you notify your credit card issuer expeditiously.
Consolidation
Too many bills to pay over different days in a month? Use a credit card to sort out and consolidate your payments. That means you only need to pay your credit card bill for all those spending. Put your recurring bills like insurance premiums, utilities, assessments etc through direct debiting from your credit card. It saves you the hassles of having to go to different payees to settle the bills.
Credit
Assuming you pay your credit card bills in full on every monthly due date, you can actually make use of the credit terms (usually 20 days or thereabouts) to allow your monies to earn interests elsewhere during that period. It may be little but money in your pocket is better than money out of pocket.
Rewards
Nowadays, almost all, if not a substantial number of credit cards come with some form of rewards or benefits. It can be earning rewards points, cash rebates or discounts at selected merchants. For example, let’s say you need to fill up your car’s petrol tank. Choose to pay by cash and get nothing in return or choose to use your credit card and earn some cash rebate or rewards points to exchange for gifts.
Insurance
Many credit cards cover your purchases with insurance especially travel and product liability insurance. These insurances are free and would come in handy in the most unexpected situations. If you were to purchase an air ticket using a credit card, chances are you will be given free insurance by the credit card issuer to cover loss of baggage, missed flights or even against personal accident. You won’t get this kind of perks just by using cash for your purchases. Just check with your credit card issuer for the terms of insurance.
Emergency
For many, having a credit card means having the availability of credit in times of emergency especially when hospitalisation is required. Many private hospitals require a deposit and having a credit card would be handy in times of need. It can also act as a pre-approved credit where hotel stays are concerned upon checking in.
It is quite obvious that there are many benefits of using a credit card. For as long as you are able to manage the expenses and dutifully pay the amount outstanding, you will be able to reap the full benefits of the credit cards. If you are still unable to settle your outstanding debts, try these practical tips to settling your credit card debts.