Say yes to credit cards!

If used responsibly, credit cards can be a great tool that can help you get more for your money. In this article, we outline some of the biggest advantages of paying with cards.

Like any financial product, there are always pros and cons which need to be taken into account. In the case of credit cards, they can actually offer a lot of value and benefits if they are managed smartly and responsibly. Read on to learn about some of the biggest advantages of spending on credit.

Consumers today are spoilt for choice when it comes to the variety of rewards and incentives offered by credit cards, which range from cashback and air miles to loyalty points and store credit. The key here is to compare your options and decide on a credit card that offers you rewards that fit your lifestyle, spending habits and everyday needs.

For travel enthusiasts, travel credit cards and frequent flyer cards are a natural choice as they can be used for free flights, upgrades to the next cabin and hotel stays. These credits usually offer the added benefit of travel insurance.

If you are looking to get money back each month from your spend, cashback is a great way to turn purchases into money in the bank. The best part about availing this reward is the convenience, as some cashback cards provide automatic cashback each month and there is no need to manage it yourself.

Low-cost borrowing

Many credit cards offer 0% EMI on some purchases for up to 12 months or instalment plans with low interest rates to make the large transactions manageable.

Universal acceptance

Compared to debit cards, credit cards are accepted pretty much everywhere and they provide an easier way for the customer and merchant to manage and process transactions. When booking a hotel room, you will most likely be asked for your credit card as the final bill amount is not known until you check out.

A great way to build credit

People who want to start building a credit profile usually do so by using a line of credit. With no credit history, you may find it difficult to get a loan, or buy a house or car. Most credit cards directly impact credit scores, so as long as you make your payments on time, you will automatically improve your profile, which opens the doors to better interest rates on future credit cards, mortgages and loans.

By following the above-mentioned tips and using your card smartly, you can gradually build your credit profile and get more value out of the money spent.