The Benefits of Credit Cards

Posted by reedcooper on March 11th, 2020

Even though there are some problems of having a credit card, such as late fees, high interest, Etc., it still has a lot of advantages in having one. I will be going over most of the advantages of owning the Meilleure carte de crédit (Best Credit Card) in this article.

The benefits of having a credit card are the free things they give out to encourage the user to use that card. Credit Cards companies don't like to compete in lowering their interest rates, so instead, they give out free things, which come out a lot cheaper than lowering interest rates.

The free thing they give outcomes in many different forms, such as cash rebates. When you make a purchase on any item, you will get 1% on regular purchases, and some offer 3 to 5 percent for buying gas and shopping at a supermarket. Once you reach , they will send you a check, and 0 is the maximum you can earn in a year.

Discount on future purchases (this one is done by stores). The way this works is, if you sign up for a credit card at the store, you will get discounts on future purchases. And bonus points for using the card, which you can get a gift certificate.

Frequent Flyers - You get miles for every dollar you spend, which will result you getting free trips, and upgrade your seat. But don't think that the miles mean, the number of miles it can fly to. For example, it doesn't mean if you have 5,000 miles, you can fly 5,000 miles anywhere in the United States, it can take 45,000 miles to fly to some part of the United States. The miles you get are usually worth few cents for every dollar. A lot of airliners are getting strict, if your account is inactive, you will lose your miles. Also remember, you need to make sure to book in advance.

Point Reward - For every dollar you spend, you will get one or two points. Once you reach a certain amount of points, you will get free merchandise, which ranges from free tickets, DVDs to electronics. Some even offer free nights at a hotel or upgrades.

When you’re using your credits card, you can be more organized financially. You will have a complete record of everything, which can be very helpful during tax time.

You can dispute items with credit cards. If you purchase something over the Internet or phone, and you never received it, you can dispute it, which will result in you get your money back. You can't do that with debit cards or checks.

Increased credit rating - when you use your credit card and pay your balances on time, this will help you build credit. When you have good credit, you can get good rates on mortgages, auto loans, etc. But if you pay your payment late (more than two to three months late) it can lower your credit score.

Many credit cards have extended warranties on some purchases. If you break your purchase or someone steals it, and if you still have the original receipt, the credit card will repair or replace the item for you. But they do have complex rules, which is time-consuming, such a getting police report, estimate on the item, filling out paperwork, phone calls, etc..