Are you contemplating if you should get a credit card or not? First-time credit card owners are always a bit anxious. But the fact is that owning a credit card is advantageous and aids you financially.
We have discussed few basic benefits of owning a credit card here.
1. Grace Payment Period:
When you make purchases using your debit card, the money gets directly deducted from your account. Using a credit card to make purchases means the money remains in your account until you decide to pay your credit card bill. Eventually, you have to pay off the amount but hanging on to your funds currently helps you. Paying using a credit card means your money stays in your bank account just a bit longer, and if it is an interest-bearing account, you will get extra interest over an extended period.
2. Easy Payment:
Using a credit card is also preferred because of the ease of payment it offers. Online banking makes it possible to access your credit card details easily. All reputed banks let you access your banking information online along with credit card-related details such as an unbilled amount and online payment of the monthly statement.
3. Building Credit:
This is one of the major reasons why people get a credit card. If you have no credit yet and trying to improve your credit score, using a credit card responsibly is a great way to help build it. You need to make sure that you do use your card and make timely payments. This will eventually build your credit history, qualifying you for larger loans at a lower interest rate.
4. Availability of Cards Based on Your Personalized Needs:
Every individual is different hence the way they will use the credit card is different. While someone would only need it to build credits, others would prefer to get a card that offers high reward points. Reputed banks like Capital One have considered their individual customer needs, hence offering three types of credit cards based on user needs- credit building, everyday rewards, and unlimited travel rewards. Once you get a hold of their card, just go to Capital One Credit Card Login to access your card details online and check for the reward points accumulation, travel miles, and card payment options.
5. Payment Safety:
Cyber fraud is a common occurrence. When you enter your card details online, there is always a possibility that the details get stolen. If your debit card is misused, you will be losing real cash. On the other hand, if your credit card is misused, it is not you who is losing the money. Banks take the liability of their credit cards; hence, mostly you will not even have to pay the bank back. Remember to block your credit card and inform the bank as soon as you realize that your card details have been stolen.
The Bottom Line:
Owning a credit card is beneficial, but you should also be careful. You may tend to overspend as the money does not deduct from your savings account now and end up with a huge bill to pay. Failure to abide by the payment date would lead to a high interested rate charged for the late payment amount. Also, late payment would affect your credit scores negatively. If you can make up your mind to use the credit card responsibly, it gives you great financial independence.