Top five reasons why having a credit card is good

Many people are scared to own a credit card. Some say that it enables you to spend money you don’t have yet and tempts you to purchase things you don’t need. But if you’re a responsible individual who possesses the resources or the job to support these spendings PLUS the self-control, then getting a credit card is something that can come in handy and useful. Here’s the top five reasons why having a credit card is good.

1. Convenience

These days, carrying a thick wallet around isn’t a good idea. Specially during the holidays when pickpockets and thieves are on the prowl, it’s better to just use a credit card. With it, you can make purchases, even in other currencies. This is very convenient when you are traveling abroad and run out of local currency.

2. Ready money

With a credit card, you get to make purchases when you don’t have money. This allows you to plan purchases, specially when it comes to online shopping. Some banks also offer installment payments at zero percent interest or buy now pay later scheme.

3. Credit accumulation

If you’re a responsible user and you pay your bills on time, you’ll most likely have a good credit history. You will find this very useful when you’re applying for loans. Banks prioritize people with good credit history. They also give them lower interest rates because they see these people as less of a risk for the bank.

4. Rewards, discounts, and freebies

Banks and credit card companies offer special rewards for people whose spending reach certain amounts. Some use the point system while others give instant rewards.

5. Security and safety

Paying with a credit card makes it easier to avoid losses from fraud. When your debit card is used by a thief, the money is missing from your account instantly. And trying to get the money back into your account is not that easy as the bank will still have to undertake an investigation. on the other hand, when your credit card is used fraudulently, you simply have to notify your credit card company immediately and won’t have to pay for the transactions you didn’t make while the credit card company takes care of the matter for you.