Chances are, you might have read our credit system blog. Here is a similar blog about credit cards and their more specific benefits.
- You need a credit card to build a credit history. As simple as that. Eventually, with the credit history, you will be qualified for better interest rates in housing, car financing, etc.
- Credit cards have some amazing cashback. For example, the Discover credit card gives a rotating cashback of up to $1,500. Here is the calendar they use for their 5% cashback on selected items and 1% cashback on every purchase.
- January – March – Grocery store, Walgreens, CVS
- Apr – June – Gas station, wholesale clubs (Walmart, Target, etc.), select streaming services
- July – September – Restaurants, and Paypal
- October – December – Amazon.com, Walmart.com & Target.com
- The cashback system is incredible. Let’s say I’m buying a $1000 laptop from Amazon. A 5 percent cashback is $50, which is a lot of money, and it doesn’t cost you a penny more to buy from your credit card.
- Payment by credit card is safer than payment by debit card. Credit card companies offer the best protection against fraud. Since a debit card is directly linked to your main account, you are more vulnerable to fraud. Since you probably have a limit on credit cards and credit card companies detect fraud charges faster than any bank makes it easier to keep you safe.
- Miles-If you’re one of those travel fanatics, you’d love to get different airline cards and bag miles. You can check out more about collecting miles and making the most from the cards on this website- https://thepointsguy.com.
- Hotels and car rental companies in different countries hold your cards when you use their services. This deposit hold could be anywhere from $50 to $250. The reason for this hold is to ensure that, if you damage their property, they will be able to recover some money immediately. When you use your debit card to hold back, the money gets blocked and returned to your account within 7-10 days. Some car rental companies don’t even let you rent a car if you don’t have a credit card. In the case of a credit card, the money will be returned to your account as soon as you finish using the services.
These are a few of the many credit card benefits out there. These are more than enough for you to get started with this journey as a first-time credit card owner (at least in the United States).