The Advantages of Using Credit Cards


Many people do not know that there are finance experts who try their best to see that people do not use credit cards. Several people are there who use credit cards not so responsibly. And, those people end up in debt. But you can choose to use your credit card responsibly and using credit cards for payment compared to the debit card is much better. You can keep the cash transactions up to a minimum. Let us look at some of the reasons as to why you should use a credit card for making payments and what the difference is that it makes. 

Benefits of Credit Cards i.e. Bonus – 

Several people do not use credit cards in Germany. Germans like their privacy and credit cards are not accepted in all stores in Germany. But Germans should know the benefit of using Credit Cards. One of the benefits of using a credit card is that of one-time bonuses. When getting a new credit card you also get an initial bonus opportunity or chance. People who are having a good credit score most of the time their request for a credit card is approved and they get a bonus of somewhere around $150 or more. They get this bonus if they spend $500 or $1000 or more on any purchase that too, which should be in the first several months. But one of the things that you will note is that in debit cards there are no bonuses.

Cash Back Rewards – 

Another benefit of the credit card is just like playing a casino game where you get cashback rewards. Similarly, even with a credit card, you get cashback. Simply, you have to use the credit card and you will get 1% or more of your purchases rebated in the way of cashback in your account. In addition, in recent days the concept has matured and also grown too fast. On selected purchases, some cards offer 2% to 6% rebate or cashback. But such lucrative offers should have annual or quarterly spending caps.

Fidelity Rewards – 

In credit cards, there are some cards where you even get fidelity rewards, or loyalty points or rewards. Besides that, credit cards even allow the users to get some reward points per dollar spent. Several credit cards with rewards also provide points or bonuses for different category spending like gasoline, grocery, restaurants, etc. When you reach a certain earning category or threshold, then you can get to redeem those points in travel or gift cards from retailers through the credit cards company’s online portal which is for rewards.

Safety in Use of Credit Card – 

The next benefit that you can have of using credit cards is safety. It makes it easier to avoid loss through fraud. If your debit card is stolen then the thieves can easily mess up with your money. The money is missing instantly from your account if the debit card is stolen. But the same is not the scenario in the credit card. But when your credit card is used fraudulently you don’t lose any money. You just have to inform the credit card company of the fraud that has happened. The credit card companies resolve the matter and you don’t have to pay for the transaction.