Credit cards have become popular over the years but there are still many who don’t own one. This group includes those that used to own a card and those that have never applied for a one.
If you are one of those people, here are the three reasons why you should get a credit card and start using it immediately.
Convenient and Secure Payments
If you prefer a convenient and secure form of payment, then get a credit card. It will eliminate the need to carry cash, which is risky since you can always lose it along the way.
The exciting part is that credit cards can be used anywhere, be it the grocery store, restaurant, gas station, or when booking a room or a flight.
Furthermore, credit cards offer protection when a transaction goes wrong. For instance, you can always claim back the money used from the card provider if you fail to receive what you had ordered. The same applies to when your card is used fraudulently, provided you were not at fault. The benefits make a credit card better than a debit card where you lose money instantly.
Helps to Build Credit Score
Credit cards offer an effective way of building credit rating. Therefore, if you have no credit history or want to better your credit score, then you should apply for one. But how does this work?
Credit cards to build credit score requires you to become a responsible user. This means using the card regularly and making payments on time. Since credit card providers report your payment activities to credit bureaus, responsible usage will earn you a good reputation. This will then continue to build your credit score.
However, you should be careful when applying for a credit card to build your rating. Make sure you choose one that will not cost you too much along the way. An example is the rewards credit card, which has no annual fees.
A Source of Capital
Starting a business can sometimes be a challenge due to a lack of enough capital. You might find it difficult to secure a loan from traditional sources such as banks, venture capitalists, and family and friends. Under such circumstances, personal credit cards card can be helpful.
You can use the card to secure all the resources you need to start the business. For instance, you can order goods and services and then pay for them using the card.
Therefore, if you intend to start a small business in the future, you should get a credit card right now and start building your credit score. This will give access to much-needed capital when the time comes.
In conclusion, there are three reasons why you should have a credit card. First, it will provide you with a convenient and secure form of payment. Secondly, you can use credit cards to build credit score. Finally, personal credit cards can provide you with capital for your small business when you are unable to secure funds from traditional sources.