The Practicality of Credit Cards that Attracts New Cardholders

For most people, having a credit card is a blessing since there are a lot of benefits they can ripe from credit cards and that is a relief to their everyday lives. A credit card is like a double-edged sword. When it is used appropriately and in accordance with the rules, its benefits will be heavily influencing whereas when you are not being careful while using a credit card, then woe to the consequences.

Those who enjoy the benefits of a credit card so far must have been able to be responsible as a credit card holder. Conversely, those who have credit cards and are in debt because of their excessive expenditures, perhaps it is time to review their ownership.

There are many people who are curious and want to try the use of a credit card but somehow failing. The reason is none other than the rejection they get when applying for a credit card. Then what exactly is the practicality of credit cards that attract all these people? Let us find out.

1. Make the Transactions Easier

Imagine you want to buy a laptop for 600 USD. When carrying cash of such amount, it will be troublesome because you have to bring a large envelope with you. It will look striking and there is a risk of pickpocket though it is impossible for sure that such money will fit in your pocket.

Transactions will be a whole lot easier if you use a credit card. All you need to do is simply insert a piece of card and the payment can be completed without hassles. For transactions with smaller values, the credit cards are still very useful. For example, you can make monthly purchases at the supermarket. You and the cashier do not need to count the money when paying. You just have to swipe the card, sign or enter the PIN, and it is done.

Another example is online transaction. When you want to buy a ticket for travel, you do not need to go to an ATM or convenience store. You just need to prepare a credit card to complete the payment.

2. Avoid Additional Expenses

The practicality of a credit card that is very valuable is to prevent additional expenses due to negligence. For example, you must have regular bills every month, such as telephone, water, electricity, and cable television. Everyone's busy life is different, but there is a possibility that you will be late in your work activities or anything else so you forget to pay the bill. The key to avoiding additional expenses due to this negligence is a credit card.

You can contact the routine service provider, for example, customer service of your chosen cable television company to set up automatic payment for routine bills. Without even going through an operator, you can manage it yourself which is through a marketplace that provides those features. This marketplace works closely with service providers in payment. You can pay your bills manually or automatically depending on how it suits you. However, do not forget to keep on checking the nominal bill and make sure you do not pay more than you are obliged to.

3. Exchange Rates

For those who often travel abroad, it can be quite troublesome if you do not have a credit card. One of the practicalities of a credit card is it can be used as a medium of exchange that applies abroad.

There are two types of credit card networks in circulation in Singapore such as Mastercard and Visa. Depending on your credit card network, overseas transactions can be done without having to change money to that country's currency. The nominal transaction is converted to dollars according to the current exchange rate. You only have to pay the bill after the vacation is over.

4. Manage Finances

If you use a credit card, all transactions are recorded properly. The expenditure data is in the billing statement, complete with the transaction date. This means you can manage finances more closely.

You can use last month's expenditure data to manage finances next month. For example, last month, 2,000 USD was spent for A, B, C, and D. Next month, it could be a target as the maximum expenditure limit.

It is different with when you record expenses manually. It could be that there is an expense that escapes the record, especially the small ones. Credit cards can help with this problem. The practicality of credit cards to manage finances is also apparent when there is an emergency and needs for urgent funds. For example, the house is having severe destruction because of an Earthquake so it needs renovation immediately. When money is running thin, credit cards are the best solution. You can even use the installment facility with interest up to 0% for 24 months.

5. Relieve Expenses

Everyone wants to relieve their expenses. With a credit card, you can relieve your expenses because of the various promotions offered. For example, a cashback or a discount from credit card transactions or points that can later be exchanged for certain prizes such as free airplane tickets when it has been accumulated a lot. It could also be the 0% installments that make your monthly expense at ease.

A number of credit cards’ practicalities cannot be denied. If you feel you have not been able to make the most out of your credit card, then you must have not been able to optimize it.