Knowing what the benefits of a credit card are will allow you to fully enjoy them. Then, you should read this article carefully where we will explain each of these benefits.
Among the benefits of a credit card are those that are specific to the instrument and not to the franchise. That is, they are common to each and every one of these payment instruments. These are those listed as major benefits of credit cards, and include:
A credit card allows you to purchase goods and services through a credit granted by the card issuer. That is, you can defer payment of the purchase value, and make your cancellation later, and in installments. But you should keep in mind that, apart from canceling the value of the acquisition, you must cancel the financing interest.
Instant capital increase
One of the main benefits of a credit card is that they can be used to increase instant capital. Remember that if you pay with a credit card you acquire a future payment commitment, but you do not consume your money. That is, your funds remain available in your bank accounts, and you can use it when you need it.
This advantage is widely used to deal with emergency situations, such as health expenses or unexpected trips. In these scenarios you can use both the funds from your bank accounts, and the one available on your credit card.
The ATM network of your credit card issuing bank will probably allow you to obtain cash advances. Some cards will even allow you to make withdrawals in local currency, if you are in a foreign country.
Online purchases and reservations
Credit cards are the most used means to make payments on purchases via the Internet. Therefore, they allow you to make online purchases of countless products and services. They also allow you to make reservations in large hotels, restaurants and airlines, among many others.
Undoubtedly, it is convenient for you to start creating a positive credit history, which will then help you obtain bank loans such as mortgage credit. And the initial way to achieve this is to comply without fail with the payments of your credit cards.
Some brands or credit card franchises offer their users additional benefits to those mentioned above. These benefits include:
Travel accident insurance
Some credit card franchises give you travel insurance, if you cancel your tickets with that instrument. This benefit can be extended to your wife and minor children, if you purchase their tickets in the same way. All this for free.
Likewise, some franchises offer you at no additional cost a purchase protection insurance that protects against damage and theft. You have the right to that insurance just by using the respective credit card as payment.
Many financial institutions offer users of their credit cards a reward system for use and loyalty. Then, with your credit card you can enjoy them, which will surely be according to your lifestyle.