4 Benefits of Using a Credit Card
June 28, 2019
It’s a long-held myth that credit cards are the source of all evil because they can cause people to accumulate debt. However, used responsibly, credit cards are very helpful and they can be great financial tools! Including your credit card into your financial plan and having a purpose and plan for how you will use it can really benefit you.
Credit cards are convenient. They can be used practically anytime and anywhere. They can even come with cash rewards. In the long term, credit cards can help build credit history and raise credit scores. Of course, that’s only if you make your payments on time and don’t charge up to the maximum limit. Below are 4 benefits to having and using a credit card!
4 Benefits of Using a Credit Card:
- Having a good credit history will enable you to qualify for important loans in the future. After all, who would risk lending money to someone who never had a credit card or pattern of on-time payment behaviors in his life? A good credit history can enable you to take out a future business loan if you choose to go into business for yourself, or help you obtain a good mortgage loan on the home that you’ll get to enjoy with your family.
- Convenience. All you need to carry is one card with you. Credit cards are accepted almost anywhere. You don’t need to worry about carrying cash around and possibly losing it. You have everything you need with one card. They can be extra convenient when travelling, especially internationally.
- Protection. If fraudulent charges are made with your credit card, you aren’t liable. If fraud occurs on your card you aren’t out any money – all you have to do is notify your credit card company of the fraud. They will take care of the rest.
- Rewards. By putting your regularly occurring expenses on a rewards credit card you are always working towards earning rewards! If you are paying your credit card payments in full each month, these rewards are essentially free. It makes sense to use your card as much as possible to earn the maximum rewards! Greater Iowa Credit Union has a great new cash rewards credit card! The Mastercard Cash Rewards Card from Greater Iowa Credit Union features 1% cash back on purchases, no balance transfer fees and no annual fee!
Though credit cards have both short- and long-term benefits, they need to be handled carefully. Everyone should have a budgeting plan for their credit card payments. Credit cards give you a flexibility you couldn’t get from cash. In case of any emergency, credit cards will be the first to help! So here’s some advice: do own a credit card. Be smart with your credit card, always have a plan for paying it off each month and earn as many rewards as you can!
If you are interested in learning more about Greater Iowa Credit Union’s credit cards you can call or stop by a branch today. We would love to help you build great credit, be protected from fraud and even earn cash rewards!