Credit cards make your decisions to purchase necessary products or pay for services possible in timely manner. When it just seems like it does not really matter whether to pay with credit card or cash, but sometimes the needed purchase won’t be actual by the time you will have enough dollar bills to pay for it. It is especially important when you are a business owner and timely actions are crucial.
Some typical benefits of using a credit card are as follow:
Easy access to money
If you travel within a country or abroad, there will be almost always easy access to the money. Even if you prefer to pay with cash, it is always good to have some extra money cushion in case the need will arise. In addition, it might not be convenient or even safe to carry pile of cash in your pocket and tiny plastic card is by far preferable choice to keep in your wallet.
Rewards
Many financial institutions offer different cash back rewards for various types of purchases. For example every gas purchase might bring you 3% back of the paid amount. So, let do a little bit of math. With today high prices on gasoline, you might spend $100 a week on fuel depending on your daily mileage driven for commuting and car make and model. Therefore, you will get $3 a week, $12 a month, and about $144 or more a year. When few dollars seems like won’t affect your budget much, but couple extra tanks of gas for free will be more powerful in your decision making process whether to get a credit card or not.
Accumulated points on certain type of credit cards can be converted into miles, free stay in hotel or getting a rental car for a week at no cost. Those who are able to use a card wisely can easily get a free vacation by simply making all purchased during a year with a credit card and paying off the balance every month.
Safety reasons
You will have peace in mind that your money will be protected. If you suspect that your credit card might be stolen, the bank can stop all transactions for few hours or until further notice. Then they will reissue the card with the same terms and conditions, but with different card number. Furthermore it is possible to track who used the card at ATM, local store or online. In contrast, if banknotes will be gone, most likely, it is forever with no way to find out where they are.
Automatic bill payment
Your bank might take worries away from you to pay minimum payments on time. Credit card issuer can automatically transfer needed amount from your other accounts to cover the balance due.
Change
Do not need to worry that someone might give wrong change or you won’t receive it at all. Everybody can make an error and mistakes do happen. Oftentimes people do not count their change after each purchase or bank transaction. Loosing pennies every day might be unnoticeable but overtime it might turn into throwing away dollars. Very few people do daily accounting to know where their money goes.
Extra money when you need it
Credit card is additional money you can always count on and with wise usage it will bring many benefits which simply cannot be offered if you cover your daily expenses with cash.