You cannot negate the fact that credit cards can lead you face debt problems. However, credit cards are also beneficial in a number of ways, provided you know how to manage them responsibly. Go through this article to know why you need to use credit cards for making certain payments.
- You can be eligible for certain rewards - The credit cards are the number one choices for mileage or cash awards, till date. You can even choose specialty cards on your chosen categories of purchases such as, on travel or on gas.
- The company may offer a protection program - Some of the credit card companies offer coverage for trip cancellation, too. So, if your trip gets cancelled due to some reason mentioned in the terms and conditions, then the credit card company will reimburse you for the trip, provided you had booked your entire trip with that card. Check your card for other types of protection such as, roadside assistance, if you need it on your travel.
- Dispute resolution might be easier - When you buy with a debit card, the money is instantly debited from your account but if you use a credit card and you become a victim of any fraudulent activity, then the dispute resolution process offered by the company may help you out. What the credit card companies usually do is, when you report a fraudulent activity, they immediately credit the money to your account until the dispute is resolved.
- You can get certain protection - The credit card companies usually offer certain protection programs wherein the retailer pays you the difference amount if you can find an item (you have already bought) at a lower price within a definite time frame. However, make sure you read the terms and conditions of your credit card well so that you're well aware of such programs.
- You can redeem the points on your card - While signing up for a credit card, look for one which has point system. You earn points on a definite amount of dollar you spend. When you are able to earn minimum points, you can redeem them in exchange for gift cards. This way, you can save money when you need to buy gifts at special occasions like Christmas or birthdays.
- The card may have car rental insurance coverage - If you get qualified for a car rental insurance offered by your credit card company, then you will not have to pay for the insurance coverage that the credit card companies offer. Though you'll have to file a claim, if required, yet the insurance provided by your credit card company might be a little cheaper.
Most importantly, you can build a good credit record with your credit cards, and a good record will help you qualify for a loan with good terms and conditions, and help you enjoy a better lifestyle. So, use your credit cards responsibly, build a good credit record and enjoy a lifestyle you desire.