We know, we know… credit cards can get a bad rap – but don’t be afraid! When used responsibly, credit cards are hands down the best method of payment. Why might you ask? Lots of reasons – better protection against fraud, travel insurance, rewards and more!
Here are our top 5 reasons why credit cards should be your go-to method of payment:
Protection against theft and fraud – first and foremost, credit cards give you zero liability protection from fraudulent or unauthorized transactions. In the event of a fraudulent transaction, your money doesn’t immediately leave your account, meaning you won’t be put out while the transaction is settled. If you’re using your card responsibility and reporting any known problems, such as losing your card, you’ll be reimbursed for fraudulent purchases made on your account.
The same can’t be said for debit cards – in the case of fraudulent activity, your funds may be recovered, but you’ll likely be in limbo while the transaction is sorted out. This could leave you strapped for cash in the meantime.
Free insurance on your purchases – depending on the credit card you choose, you have access to a variety of insurances that protect your purchases. These include:
- Trip cancellation insurance
- Emergency medical travel insurance
- Mobile device insurance
- Baggage loss/delay insurance
- Rental car insurance
- Extended warranty on your purchases
No need to dish out on extra insurance and warranties when your credit card has your back!
Earn cash back – most credit cards have a rewards system, earning you points or money back on your purchases. The more you spend on the things you’d buy anyway, the more rewards you can earn – sounds like a win-win, doesn’t it?
Let’s say you typically spend $500 a month on groceries ($6,000 a year) and you use a credit card that earns you 2% back on your purchases, you’d have racked up $120 back, just for buying groceries! Now, tack on your other monthly purchases and you’ve got yourself a side hustle!
Build your credit – boost your credit score simply by using and paying off your credit card each month. To maintain a healthy credit score, try to keep your balance below half of your credit limit, minimize the number of credit cards you own and remember to pay off your balance in full each month.
Score sweet perks – many credit card providers offer a whole host of other free perks. This is could include sign up bonuses, low interest rates, cash back options, 24/7 travel assistance and more!
There are tons of benefits to using credit cards – the trick is just being smart about it. Plus, with so many different card options, you’re bound to find the one that fits your life and spending style. Interested in your options? Check out our suite of Mastercard® products, contact us at 1.866.863.6237 or book an appointment online.