5 Reasons To Use Your Credit Card Everyday

5 Reasons To Use Your Credit Card Everyday

Using a credit card can be frightening, especially if it is the first time.

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Using a credit card for the first time could be scary, and some people think it should be used in certain situations only. However, a credit card can be used for your daily purchases, and it has some benefits.



1.    Rewards

 

This might be the best reason to promptly use your credit card, because whenever you use it, you get reward points. After a while, when you have enough points, you can redeem them in different ways, depending on the bank and type of card. Rewards can be redeemed as e-vouchers that can be used at certain shops, or as travel miles, or even as cashback, which is money added to your account.


2.    Building your credit history (i-score)


Using your credit card and paying it off at the right time helps you build your credit history, which is reflected in your i-score (link). This is very important, because whenever you come to apply for a credit card or loan in the future, the bank looks up your i-score. Based on your total (the higher the better), the bank decides on the range of finance products available to you. In addition, a higher score will enable you to get better interest rates.

 

A lot of people consider cash to be cumbersome and impractical; it can be stolen, and it requires a lot of space. So, if it’s a huge amount of cash, transferring it or walking around with it becomes a problem.

 

3.    There is a transaction limit on your bank account


If your debit card has a limited number of transactions every month, then using your credit card is way to circumvent this. Usually, a credit card doesn’t have a limited number of transactions as long as you are within the card limit.


4.    You don’t want to use cash


A lot of people consider cash to be cumbersome and impractical; it can be stolen, and it requires a lot of space. So, if it’s a huge amount of cash, transferring it or walking around with it becomes a problem. That is why using a credit card will be optimal in this situation.


5.    You want a detailed account of your expenses

 

The bank issues a statement with your credit card transactions every month, and usually the statement lists the vendors and amounts spent. In addition, if you have the notifications service activated, the bank sends you a message with the same information every time the card is used.

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