the Benefits of Credit Cards - It is very important for everybody to hold at least one credit card. It is true that even though a person loses his sleep over the thought about repaying his debt, yet he feels the urge to swipe the credit card as soon as he sees a lucrative deal.
Due to the same reason, apparently it may sound wise to stop using credit cards and close the accounts but think before you actually do it. Certain things are there that turns out to be less fussy with the use of credit cards. Thus, you are more likely to get a loan if you have a credit card already provided you pay your bills on time.
Four benefits of credit cards to customers are discussed below:
Getting a Loan
A credit card helps to get a loan without much hassle. You may think that you are in a better position to get a loan now since you did not use a credit card before and have not taken a loan with it as well. However, this is not the fact. Rather, it is a common phenomenon with moneylenders to check your payment history so that they can determine your creditworthiness. About 35% of their decision is based on the fact whether you have a good credit score or not. Useful for business owners, individuals and common men.
Keeping Records
A credit card makes it easier to keep track of your expenditure. Moreover, if you use programs like Quicken or Microsoft word, you can actually have a complete idea about the changes in your spending habits over several months. Many companies have introduced added management features, which let you categorize different types of charges online. You can even see the total for all the categories separately.
Getting Started with a Dream Career
Your credit score is also important to get you the desired job. Once you are offered a job, your employer will run a background check. Checking the credit record of a candidate is also a part of this background check. It is important to build credit with the use of credit card. It matters to the company especially if the job deals with finance. This guarantees that you are a responsible person in terms of handling finance. A perfect financial history would help your career to get a proper shape and get you loan as well when needed. This can be beneficial for students or individuals wants to go higher studies.
Other Benefits
Most of the credit cards company offer reward programs of some kind. It has been seen that you get a minimum of 0.5% to 1% cash back on your expenditure with credit card. You may not get this facility if you use other modes to make payment. Some credit cards come with the facility of providing extended warranty on different products as well. This means even if the manufacturers' warranty has expired, you would have extended warranty due to the credit card you are using. You get theft protection on certain products as well for using credit card. You are also eligible for travel insurance if you use credit card of certain companies.
Booking a hotel room, renting a car, buying a flight ticket, etc. are some of the different things that you can do using a credit card very easily. Thus, using a credit card wisely should be the motto rather than putting it to no use.
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