In some countries, the idea of having a credit card is frowned upon. It gives the idea of having to spend money that you do not have. However, if you are a responsible credit card holder, it is actually not a bad idea to have one.How can it benefit you exactly?

Bonuses

Credit card companies encourage customers to apply through sign-on bonuses. Usually, they will give an amount which you have to spend in order to get your bonus, so it’s essential to read the fine print.

Cash Backs

What’s a better way of earning money than to spend? When you make a purchase using a credit card, you receive a certain amount back to your card. It usually ranges from one to six percent of your spending. Over time, add up without even noticing it.

Credit History

The credit score is one of the things you have to be careful about since it shows a record of your financial activity and capability. It is essential if you plan to borrow money. Having a credit card can build up your credit history, given that you’re a responsible holder. The longer you use credit cards, the more you’ll build up your credit score.

Convenient fraud tracking

The difference between having a credit card versus a debit card is that the charge does not immediately reflect on your account. This means that you still have time to check your transactions and report those you think are fraudulent. After reporting and investigating it, credit card banks easily reverse these transactions, as if nothing happened.

Rewards Programs

Because a lot of banks offer rewards programs, the trick is to find the rewards program that suits your spending habits. You can also check the retailers that are tied up with them. It includes point systems, where you can earn points by spending and exchange it with a gift card or rebate.

There are different credit cards available that suit your lifestyle as well. One example is a travel reward card. These type of cards focus on giving more points and rewards from traveling. If you use your car often or dine out most of the time, bonuses are also available for purchasing gas and buying food.

Tracking Your Spending

Credit card statements serve as your spending tracker. Your transactions get recorded with all the essential information so that you can track if these transactions are legit. This also benefits you by having a record available for your tax returns in the future.