Credit cards have been seen as the reason why people spend too much and end up in debts. This has made many financial experts to advise their clients against using credit cards when shopping. But contrary to this popular belief, there are many benefits that one can get by shopping with a credit card. All you need to do is be responsible for your card. This way, you will not find yourself in debts as many have found themselves. Choosing a credit card over a debit card is beneficial in many ways as we shall see in this article. Reading this article to the end will give you many reasons why you need a credit card for shopping.
If you are an applicant with a good credit score, then you always stand a chance of getting sign up bonuses when you sign up for a credit card. The bonuses are high, ranging from around $50 to $250 and even more. There are other card providers that will load your card with large amounts of reward points. These reward points can be redeemed for financial benefits. As a regular shop, you are better off with a credit card since if you qualify, then you can get free money for your shopping.
Can earn points
Every time you shop with a credit card, you get points that can be redeemed. There are companies that can reward up to four points for every dollar spent when shopping. Also, there are other companies that usually give points up to ten every time you shop with them. You can redeem these points to get gift cards or use them to buy items.
You get cash back when you shop with credit card
It might sound untrue to those who have never used a credit card, but it’s true. Many companies in America will give you cash back of up to 3% of your balance. There are many card providers such as the Fidelity Investment Rewards card that can refund up to 6% of your balance. This card provider, however, has a condition; you must deposit the cash back directly into an investment account.
Paying by credit card is secure
You can easily avoid losing your money to fraudsters by using the credit card instead of the debit card. Remember that when shopping with a debit card, money is instantly deducted from your bank account. This way, it becomes difficult for the bank to detect if the shopper is actually the owner of the card. But with a credit card, any excess shopping or late payment of bills will trigger the bank to investigate the matter. Also, every shopping detail is mailed to you, thus you can easily instruct the bank not to allow shopping with the card.
No instant payment with credit cards
Unlike debit cards, shoppers using credit card have a grace period before they pay their bills. This is important since it gives you the time value of money thus making the purchase somehow cheaper. Also, the extended period before you make your payments is important as it allows your money stay in the bank. This is helpful as it can help you earn some interest.
One thing that most users of this card do not know is that their cards come with a lot of consumer protections. In most cases, the card will come with insurance such as rental car insurance, travel insurance, and product warranties.
Shopping with a credit card allows you to purchase anything anywhere in the world. There are no limitations on what you can buy, which is usually the case with debit cards. It is usually difficult to rent a car or pay for your hotel room using a debit card. This is because hotel rooms and rental car companies find it easier to charge their clients for damages using a credit card. Since the credit card is a universal card, you can shop at any shop across the world.
Improve credit score
Many people have used these cards for fair credit. This is where you use the card to improve your credit score. Credit card companies always report payments made to the credit bureaus and this can be important in helping you build your own credit.
Only pay for honest work
Many people across the world have used the plastic to make people they employ on contract do their best. This is because you will not pay for their services instantly like when using a debit card. As mentioned earlier, payment with credit card takes a while before it actually takes place. So if the worker did a shoddy job, you can always cancel the payment. This makes contract workers be keen on their job to avoid payments being canceled.
Easy to get
As things keep evolving, so does the credit card acquisition changes. Unlike before, today there are provisions to apply for credit cards online. This way, you do not have to spend many hours queuing just to get your shopping card. Actually, business people have been able to save a lot of their time since they can do everything regarding their cards online. This includes getting payment reports and getting online support from the credit companies.
Looking at all the above, there is no doubt that plastic cards are better than debit cards. you cannot enjoy the above benefits if you are a debit card user. So before you choose which card to get for your shopping, analyze the benefits of each. I just provided benefits for credit cards, and they are my preference.