From personal finance experts to our own friends, the credit card has always been understandably advised against. We are prone to abusing them, hence putting us at risk of debt. However, if you use it responsibly, you’re can actually reap better benefits when you choose a credit card over your debit card. Let’s examine why using your credit card is the superior cashless transaction.
Rewards and Points
Credit cards often come with a rewards and/or points system to incentivise usage. Many card rewards work on a point system as well as promotions and bonuses at specific establishments like restaurants or spas.
Then, with all these points you collected, you can redeem your points for at partnership stores. More commonly, you could even buy items straight from the credit card company’s rewards catalog. This system is an exciting perk that would benefit you even more in the long run.
Paying with a credit card makes it easier to avoid losses from fraud. With a debit card, if you get into a situation with a thief or hacker, the money goes missing from your account instantly. Legitimate expenses for which you’ve scheduled online payments for may bounce, causing all kinds of stress. Even if it’s not your fault, it can take some time for fraudulent transactions to be reversed while the bank investigates.
By contrast, when your credit card is used fraudulently, your money is still safe. All you have to do is notify your credit card company of the fraud and the credit card company will resolve the matter.
Certain purchases may be challenging to make with a debit card, especially when you’re travelling. When you want to rent a car or stay in a hotel room abroad, you’ll almost certainly have an easier time if you have a credit card.
Contrast to using a debit card, your bank may impose on you specific requirements when you choose to use it while you’re in a foreign country. They may ask you to keep a sum of money in your account or settle and confirm particular details over a bank counter. All this hassle could be done away with just using a credit card.
Signing up for your first credit card is a process that could be as easy as just filling up a form once you finally understand the terms and perks of having one. It’s also important to understand how you will be impacted once you have a credit card. Once you’ve done all that, head on over to https://www.rhbgroup.com/personal/cards/credit-cards/overview/index.html to choose the best credit card for you.