Why having credit cards can be good for your credit profile?
When used responsibly, credit cards can be a powerful financial tool that will assist you to build a good credit score which in return might mean you can qualify for bigger loans in life, such as a home loans or car finance. It is essential to stick to repayment terms of a credit card, as long as you can use a credit card responsibly, there are endless advantages to using a credit card.
Various credit cards offer reward programs which can allow you to earn money or some reward in return for using your credit wisely. They are also very convenient and are accepted by most merchants internationally. They also mean less walking around with cash and being safer in regards to how you carry ‘money’ around.
We have put together some advantages for you:
The convenience factors
As mentioned, your credit card gives you instant access to money without you actually having to carry it around.
Security and protection against fraud
The security features that go into a credit card makes it safe to not only shop online but also in-store.
You can use a MasterCard or Visa credit card to pay for things while abroad. And if it’s super urgent, you can even withdraw cash from ATMs.
Build up your credit record
Using and paying off a credit card timeously is an easy way to build up a positive credit record. This means quicker approval for loans and possibly even lower interest rates.
Collect Rewards Points
With most credit cards, you get reward points when you use your credit card for everyday purchases. You can use these reward points with various partner retailers.
Easy Payment Solutions
The budget facility on a credit card means you can pay off big expenses, like an unexpected medical emergency, a new fridge or a missed flight, in monthly instalments.
Travel made easy
Receive free basic travel insurance when paying for overseas flights with your credit card and you will not be charged any foreign transaction fees
Putting a hold on a rental car or hotel room is easy with a credit card
Until next time.
The MoneyShop Team