Let’s all agree that paying with a Credit Card is super convenient. Yet, some people would never consider using Credit Cards, as they believe it encourages overspending. That’s completely understandable; however, Credit Cards are also very useful if used wisely.
Here are some benefits you could get from using a Credit Card:
When it comes to Credit Cards, there are ways to protect yourself from being stolen, as opposed to holding cash. For example, if your wallet got stolen, you could quickly cancel your credit card. But there’s no way to get your cash back until you find your wallet. Also, if your credit card has been used in a suspected transaction, most banks would call you before accepting the transaction. Banks are always seeking new ways to increase the security of your Credit Cards.
2. REWARD POINTS & OFFERS
Reward points and offers are among the most satisfying perks of having a credit card. Banks could give you offers on a variety of products, from simple groceries to jewelry and anything you that comes to your mind if you used their credit card. Also, if you are a frequent flyer, you could go for banks that give credit card airline programs. You would benefit a lot then. Reward points are points you get for each pound you spend. For instance, a bank could give you 2 EGP for every 5 pounds spent. This could add up easily especially if you are buying expensive stuff with your credit card.
3. WORK IN ANY CURRENCY:
Although currency conversion fees usually apply, you can use your credit card overseas to make purchases in a foreign currency. Smart travelers choose to carry plastic over cash because it is much more convenient.
It might sound counter intuitive; however, Credit Cards could help you manage your finances. It could even be your budgeting top tool. I mean, if you worked on tracking your expenses each month through your Credit Card, you will have a better understanding of the areas you overspend and try to work on cutting them off.
5. FREE BORROWING:
Yes, credit cards do have interest, but that’s only if you’ve exceeded the grace period. Otherwise, credit cards are considered to be the cheapest way to borrow money, I mean, it’s for free!
A smart trick here, let’s assume you wanted to buy something that’s worth 10,000 EGP and you had the cash available. Instead you used your credit card that gives one reward point for every pound. And, you chose to put this 10,000 in a saving account giving, let’s say, 6% interest. Within the 50 days of the grace period, you will earn 50 EGP, and 10,000 point, which is around 50 pounds. What a win though.