Having a credit card is almost a necessity in these days, when a good credit score and flexible payment options are needed for better prices, interest rates, or a better variety of goods. If you need even more incentive for a good credit card, however, look at these four benefits:
1. Flexible purchasing options. With a credit card, you can use your card conveniently at the gas station, in the grocery store, or while browsing online shops. Using a card offers you better security, as well as helps you keep good track of your spending.
2. Reward points. For many cards, you can choose how you want your rewards. You can get it in cash, in hotel points, restaurant gift cards, or even air miles. If you really want air miles or some other specific reward, you can get a special card geared to give you the best rewards.
3. Better credit. If you use your card responsibly and pay off your balance, your credit score can rise significantly. Better credit means better interest rates on loans and a better chance to be accepted for a mortgage or car loan.
4. Flexible payments. Like installment loans, credit cards offer you a minimum scheduled payment. You can usually designate these payments to be taken from your account automatically, or you can set up monthly reminders. You also have the flexibility to pay a relatively low minimum monthly payment, but can pay off all of the debt in one payment as well.
Whatever credit card you decide to go with, having a card around just for emergencies is a great idea. Using a card responsibly, however, can be a great way to improve your financial stability and credibility.