Give you perks
Credit cards allow people to borrow funds from the banks and then repay the same within 30 or 60 days. These cards provide many benefits and perks to people. A few of the perks of using credit cards are:
- You can earn rewards:
Using credit cards of some particular banks makes you entitled to earning rewards and getting cashbacks. everal websites and brands have ongoing offers on certain cards.
- Building your credit score:
The use of credit cards will help you build your credit score . When you make your credit card payments , banks send positive message to credit tracking companies.
- Protection against fraud:
Using a card can save you from several frauds as well. Using a credit card from a well-reputed bank can save you from suffering or encountering any fraud related to cards.
- No links to a savings account:
Credit cards allow you to do transactions without any ambiguity. Credit cards are not linked to your savings accounts; this makes it easy to transact without worrying about any problems.
You can build better credit history with following disciplines
Pay on time:
Having a credit card and using it is a responsibility. If you are using it to make payments, you also need to ensure that you are repaying the amount on time. Failure to repay the dues within the stipulated time can lower your credit score.. This is the reason why paying back on time is important.
Make payment automatic:
Many credit card companies offer automatic payments option; they allow their users to set up an account. T The perks of this feature are:
- It will keep you from failing to repay the credit card payments..
- You will not have to keep track of the payments.
- This will avoid possibility of late fee
- It helps help to maintain or increase your credit history.
Keep track of transaction history:
It is important to keep track of the transaction history when you are using credit cards. There may be times when there might be an error in the automated statements; you can cross-check the same if you have a transaction history with yourself as well.
- This will help you in balancing your expenditure.
- You can easily identify any frauds or theft.
- Helps you cross-check the statement before making payments.
- Helps to keep a record of the monthly expenditure.
These are the reasons why keeping track of transaction history is important.
Free rental car insurances
Some credit card companies provide free auto rental insurances. This is a big money saving perk. Whenever you rent a car , use your credit card to make payments. That will provide you all rental insurance perks.
Not too many cards
To maintain your credit score, it is very important to maintain a limited number of credit cards in hand. Every credit card has a limit of borrowing money from the bank. if you have too many credit cards, the total limit adds up. That is considered negative for credit history. To maintain or improve credit score, it is important to own only 2-3 credit cards.
In summary, owning a credit card is very important for improving credit scores. We recommend that you own a credit card and make full payments every month on time.