Why You Should Use a Credit Card for Nearly Every Purchase?
Credit cards have become the most preferred payment mode for almost all purchases nowadays. They offer freedom from carrying cash and help keep track of your payments and purchases. You can use credit cards for nearly all merchant payments offline and online.
One of the most important advantages of using a credit card is earning reward points or cash back on purchases. You even earn 5X rewards in some categories.
In this article, we will discuss why you should use your credit card for almost every purchase. Let’s begin by exploring the benefits of credit cards.
Bonuses & Rewards
One of the most significant advantages of using a credit card is its offers. Over time, the rewards you earn from your credit card spending can be redeemed for various items, such as cashback or gift cards.
Points you earn from your credit card spending typically have validity, but some issuers don’t levy this condition. Meaning there’s no need to rush to redeem them. So accumulate points over time without worrying about them expiring or running out.
Moreover, credit cards can offer bonus rewards on specific spending categories, such as dining, petrol pumps, or travel. For example, some of the best cashback credit cards may provide 5X reward points or cashback on dining purchases, allowing you to earn rewards faster and maximise your savings. So, frequently spending on such categories, like travel or groceries, can be beneficial.
By taking advantage of these bonus rewards, you can make your credit card spending worthwhile and enjoy cool rewards.
Another reason for using a credit card is the convenience it provides. Credit cards are widely accepted at almost all merchants and can be used for in-person and online purchases, so they have become the most preferred payment option.
Using credit cards means no need to carry cash or cheque. This makes transactions faster and more streamlined for you. Additionally, credit cards can offer features such as automatic payments, which allow you to set up recurring payments for your utility bills or OTT subscriptions.
Some credit cards also come with mobile apps, which allow you to manage your account, track your spending, and make payments on the go.
Credit cards offer several security benefits, making them a safer payment option than cash or debit cards. For starters, credit cards come with fraud protection, which means you won’t be liable for unauthorised purchases made on your card if reported timely.
Suppose your card gets lost; report it to your card issuer, who will freeze your account and send you a new card. Additionally, the issuer offers encryption technology with their credit card app that helps protect your personal and financial information from hackers or identity thieves. This makes credit cards a safer option for online purchases.
Reasons why you should use your credit card for almost every purchase
- Convenience of payment
- Reward points or cash back on every purchase
- Helps you keep track of your purchases/payments
- Enables you to do spending analysis – monthly and annually
- Interest-free period of up to 50 days, including the grace period
- Offer and discounts from e-commerce websites
How to use credit cards wisely?
While credit cards offer many benefits, such as convenience and rewards, using them can be tricky, so it’s essential to understand their terms and conditions and set a budget. Following the tips below, you can use your credit card effectively and avoid debt.
- Understand the terms and conditions: Before getting a credit card, it’s essential to read and understand the card’s terms and conditions. Pay attention to the interest rates, fees, and payment due dates.
- Set a budget: Create a budget to ensure you know how you use your credit card. This way, you can pay your credit card balance in full each month, avoid interest charges, and prevent your debt from piling up.
- Track your spending: Keep track of your purchases and monitor your credit card balance regularly. You can easily do this on the mobile app of your credit card.
- Use it responsibly: Don’t use your credit card to make purchases you cannot afford to pay back. Remember, you’re essentially borrowing money from the card issuer, and you’ll have to pay it back with interest.
- Pay on time: Always make your payments on time to avoid late fees and negative impacts on your credit score.
- Know your credit score: Understand how it is calculated and try to improve it. A higher credit score can lead to lower interest rates and better credit card offers. And if you are struggling with that, get a secured credit card against FD.
- Protect your card: Keep your credit card secure, and don’t share your card details with anyone. If you suspect fraudulent activity, report it immediately to your card issuer.
Credit cards offer many benefits to their users, including bonuses and rewards, easy payments, and security features. By taking advantage of these benefits, you can make your credit card work harder and earn more rewards.
However, it’s important to remember the potential pitfalls and to use credit cards responsibly by understanding the terms and conditions, setting a budget, tracking your spending, paying on time, protecting your card, and managing your credit score. With these considerations, you can make the most of your credit card while staying financially responsible and avoiding debt.