A credit card is a useful instrument when you need to solve some financial needs. You can make your purchases, pay your bills, or attend to unforeseen events.
If you have a debt-free credit card, you can more easily access credit or bank loans. There are several types of cards. The most suitable for you depends on the use you want to give and the economic capacity you have.
You should look for the best credit card that will allow you to access different banking services smoothly. Take your time to understand the benefits offered in each credit card model. There are several reasons why you should have a credit card. We are going to look at each of them. Â
Uses of a Credit Card
Making Purchases
Most people use a credit card to make some purchases. These financial products offer you a line of credit to purchase items with the money they lend you and be able to pay it later. The danger of buying with credit cards is that you do not feel the same as when you pay in cash, so it is important to think that the entire payment you have to do anyway at the end of the month.
This will help you be careful about spending your cards. It is recommended that you use your card only for large purchases (for example, buying an appliance or a computer) and not for frequent items.
Cash Availability
You can also withdraw money from your credit card to use it freely. However, the interest rates on these withdrawals are very high. It is not recommended that you use your credit card to withdraw cash. Understand your bank rates better before using your card.
Debt Transfer
This is a very interesting alternative to credit cards. The purpose is to cancel the debt you have on one credit card with another. If you compare well and choose a credit card that charges you less interest, you can save by transferring your debt from one card to another.Â
Benefits of Having a Credit Card
Although its main use is to allow you to make purchases when you do not have cash, there are other advantages that you can obtain from them. They include:
Maintaining Credit History
Credit cards are very helpful to have a credit history, which allows you to be seen as a good customer for banks. To achieve this, it is advisable to use it at least once a month, so that financial institutions have information about your behavior and ability to pay. However, you should consider not using more than 40% of the credit capacity of the card, since that means that you depend a lot on your card and you could buy more than you can afford.
Offers
Currently, there are credit cards that give benefits to people who usually make a lot of trips. If you are one of those customers, try to find cards that allow you to accumulate kilometers or miles. If you like to make more exclusive trips, you can find cards that give you access to VIP lounges at airports. In these rooms, you can consume food and drinks for free, connect to the internet, watch television, relax in comfortable chairs, and even take a shower if the wait is too long.
Not all cards offer the same, so if you are looking for one with those characteristics, be sure to read the conditions before choosing the best one.
Purchase Without Worrying About Currency Barriers
If you are traveling and do not have cash in foreign currency, you can use your credit card to finance your purchases. Your bank will carry out the conversion when making the payment. If you are thinking of applying for a credit card, remember to know the options available to make sure you choose the one that is best suited to your particular case.
