Credit cards can give you a pain in the neck, charging double-digit interest rates and annual fees. We all have heard numerous stories of people who stuck in a quicksand of debt. It's a pity that many Americans live with this reality, since they can easily avoid all these problems. If you exercise financial discipline, a credit card becomes no more dangerous than any other mode of payment. Moreover, numerous advantages make it a very useful and valuable financial tool. We'll tell you about the best credit card perks and benefits that will make you love plastic money.
1. Rewards programs. Many lenders offer loyalty programs to reward their customers. Every time you make a purchase, you will earn points or cash back for every dollar you spend using your plastic. Depending on the rewards program, the points can be redeemed for airline tickets, hotel stays, vacation packages, gift certificates and more.
2. Zero interest rates. A zero APR on purchases is an effective way to save money on all your purchases, no matter what you buy: everyday necessities or more expensive items. You can charge significant amounts of money without paying a small fortune for it.
Choosing a plastic with zero APR on balance transfers, you can eliminate your debt sooner.
3. Booking a trip. If you are going on a self-planned trip, you need to make a hotel reservation, book air line tickets or rent a car online. These businesses require a credit card to leave a deposit. Your reservation will be guaranteed even if you arrive late.
4. Make online purchases. Paying with credit card online is easy, fast and convenient. Try asking Amazon if they accept cash! Some companies, like Citi and Discover, offer special "virtual cards" for making purchases via Internet. Online fraud protection helps to prevent fraudulent charges.
5. Purchases on credit. A great benefit of using credit is that you can make a purchase now and pay for it later. It especially matters when you urgently need to buy a lot of items, but your budget doesn't allow you to do it. No need to tell anyone about your financial problems or beg your friends to lend you money. Get a credit card and buy what you need.
6. Raise your credit score. If you apply for a suitable credit card and use it responsibly, you can build a solid credit score that will be your best recommendation. Lenders regularly report your payments to credit bureaus. It will let you prove your responsibility and trustworthiness.
7. Fraud protection. Under federal law, if someone fraudulently uses your credit card you're only responsible to pay the first $50 of unauthorized charges. Zero liability policies add a second layer of protection. Under these programs you won't pay anything if you have become a victim of credit fraud.
8. Emergency fund. Have you ever been caught when an ATM was down or your bank was closed for a holiday? Credit cards will be your helping hand when you urgently need money. You can make purchases any time you want.
9. Documentation. Credit card statements help you track your expenses - they contain the record of all your purchases. Using useful online tools, you can view up-to-date billing information, create customized reports from your spending data, set up automatic payments or payment due reminders, find current and past statements and sort them by date, merchant, or amount.
10. Worldwide acceptance. As many travelers know, there are some strict rules for accepting US currency in many foreign countries. It must be without any tears, ink marks and missing corners. Otherwise, you may have problems to pay with your cash.
On the contrary, MasterCard and Visa cards are accepted nearly everywhere around the world. And don't worry about converting your dollars into foreign currency - it is done automatically.
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