Pros of Credit Cards

Credit cards are considered to be the ultimate convenient financial tool.

The negative press they have been receiving isn’t actually their fault but that of people who use them abusively. In fact, they can prove to be quite powerful and useful to one’s financial life when used appropriately. The pros of credit cards lie in moderation and smart usage.

Pros of credit cards: Convenience
The most obvious is financial convenience. Carrying a credit card is definitely easier than carrying cash. It’s not only easier; it also offers protection against theft. People don’t need to wait in line for ATMs anymore and worry about getting mugged when carrying large amounts of cash. They even have something to turn to during emergencies. Credit cards are also the standard method of payment accepted for online and on-phone transactions. These advantages have definitely propelled credit cards into a staple financial tool along with cash and checks. Other pros of credit cards include the additional purchasing power they offer, which is otherwise limited when dealing by cash only. Since the money that you use is “borrowed”, you get to spend more, provided that you pay on time and in full every month.

Pros of credit cards: Rewards
Credit cards also offer complimentary insurance and protection for purchases and from damage, loss, and theft. Most credit cards now offer varying insurance coverage including travel accident, car rental accident or damage, flight delay, baggage loss, and purchase protection. Credit card holders can now travel with an added cushion for protection. These pros of credit cards have definitely been the reason for the increased number of travels in a lot of countries today.

Other pros of credit cards that increase their attractiveness to users are the rewards programs that they offer. In order to encourage consumers to use their cards for most of their purchases, credit card companies devised a point system that gives the cardholder rewards points every time they use their credit card. These points are then accumulated for a variety of rewards that include cash, gift certificates, merchandise, and even tour packages. Credit card companies also offer a rebate system that allows the cardholder to save a certain percentage of the total amount spent simply because of using a credit card. Who doesn’t love discounts and savings and cash?

Of the pros of credit cards mentioned, the most important thing is the fact that they can establish and improve your financial reputation through your credit history. Getting a credit card is the primary step in establishing a reputable credit history. The next step is paying for bills on time and in full to keep a credit score up and a rating on the positive side. Everyone knows that having a good credit history opens a lot of doors when it comes to loans, other credit cards, insurance, rent, and even jobs.

Definitely, these pros of credit cards are the reason why the number of credit card users has increased tremendously over the years.


Source: Credit Cards For People With Bad Credit Rating

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