If not used wisely, your credit card can cause financial problems. If you pay your monthly instalments in full each month and don’t spend money you can’t afford, there are many benefits to owning and using a credit card.
- The perfect way to build a financial history
Especially in the current economic context, obtaining financing is becoming more complicated, whether it is your dream home, an exotic vacation or a car. Obtaining a loan becomes more difficult if you do not have a credit history. Banks and other financial institutions use your credit card to investigate your credit record so that they can identify your risk profile. If you do not have a credit card, this becomes very difficult, if not impossible, especially if you do not have other cards, such as store cards. Using a credit card correctly is the best way to prove your financial responsibility. Obtaining a new credit card is a great way to prove your ability to take care of your bank accounts, which improves your credit rating. Having more credit cards is a better way to get a good credit rating. When using a credit card, make sure you don’t use more than about 30% of your available funds at one time.
- Great for travel
Credit cards are essentially major travel partners. When travelling abroad, one of the challenges can be getting the local currency, which is not always easy. With a credit card, you don’t have to worry about anything. Yes, you will incur a fee if you use the card abroad, but these costs are minuscule compared to what international traveller’s checks and ATM fees will cost. You will have access to exclusive lounges at the airport, as well as concierge services. Some other travel benefits include:
Insurance and emergency assistance
Flight delay and cancellation insurance
Insuring lost luggage
- You will be rewarded
Most credit card companies offer various benefits when using their credit cards, such as reward programs. The more you scroll, the more points you get for frequent miles and various services and products. Reward programs offer a refund or can redeem you points earned for entertainment, travel, lodging, discounts on car rentals and hotel room upgrades, as well as discounts on products or gift vouchers from participating stores that are ideal for the day. Birth and Christmas shopping using 신용카드현금화.
Different types of cards will give you different types of points accumulation systems, and the general rule is the more special the book, the faster you can earn points each time you pass. Some business credit cards give you points for advertising in certain environments and complement certain gas stations, which can cover certain business expenses and computers, for example.