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Mix Money

Is A Credit Card Right For You?

Here are the top reasons if you should have one!

via loanstreet.com.my

Almost everybody has a credit card now, but should you have one too? If this list of top reasons rings “this would help!” in your head as you read, then the answer you’re looking for would be yes.

Build Your Credit

Looking to build up your credit score but don’t know where to start? Start with a credit card as it helps you increase your credit-worthiness when you pay in a timely manner for your bills. It also creates transactions for your credit history.

Increase Purchasing Power

A standard credit card normally gives you a credit limit which is double of your salary. It helps you buy things you can’t afford just yet. For example, you can purchase goods on instalment plans and not fret about saving for months before you could get it.
 
Buffer For Emergencies

We never know when something urgent would happen. A credit card can save you some trouble and help you avoid facing a financial problem in an urgent situation. Even if you can’t use the credit card itself, you could get cash advance from it.
 
Grace Period

Grace period is a time where no interest will be charged on your credit card for your purchases and bills. If you don’t have the cash immediately to pay, your credit card could help you buy some time without a price.
 
Balance Transfers

This is a great way to save some money. It allows you to transfer your debt to the credit card which may have a lower interest rate. Or if you pay before grace period ends, you don’t have to pay any interest. On top of that, you could collect points or earn rewards.
 
Convenient

You just need to bring your card and swipe it when you use it. There’s no need to get cash from a bank or ATM anymore, in addition to not having to pay interbank fees. It’s easy to carry around, you can even use it online and overseas without having to exchange currencies.
 
Easy Payments

A credit card bill will come itemised and detailed with the transactions you’ve made and can be easily paid. You could also pay all your monthly commitments through auto-debit to save yourself the trouble of paying them one-by-one every month.
 
Safe

Once your wallet is stolen or missing, the cash you have inside will be gone! But with a credit card, you just have to call your issuer and let them know it’s missing and you can save yourself from paying for things you didn’t purchase.
 
Signup Bonuses

Credit card companies like to entice potential customers with a free gift which you get just by signing up. So why not sign up and receive it?

Conclusion

To sum that up, a credit card would make your life easier based on the reasons above. There are also many reasons that you shouldn’t get a credit card. But then again, if you think it’s going to make your life easier and you have control over your spending habits, then sign up for a credit card of your choice.

Article via Loanstreet

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