Mich
There are contrasting opinions whether it is an advantage or a disadvantage to use credit cards. Yes, it’s true that credit cards can cause enormous financial trouble when misused. However, there are also several advantages that we can enjoy if we are using our credit cards cleverly.
Here are some of the benefits that I personally experienced as a credit card holder. I’ll share to you at least 4 benefits.
Convertible Reward Points
Credit card companies had built partnership with several businesses to allow their card holders to enjoy the promotions of several local merchants by converting the accumulated reward points.
A few years ago, I used my credit card to pay for my wedding expenses from my different wedding suppliers. I also took advantage of my credit card provider’s promotion that for every P12,000 ($240) purchase, entitled me for one bucket meal of Jollibee Chicken Joy. If you could just imagine how many bucket meals I had back then.
Photo Courtesy: Jollibee Online
Some credit card financial providers also offer reward points that can be converted to mileage points. You can use the points to book for an airfare ticket. For frequent travelers, this type of card fits you well. Some of the perks that I had received for being a credit card user include watches, bags, food and I am looking forward for more freebies to avail as I continue to use my card wisely.
Easy Installment Agreement
Have you tried applying for a loan where in you will be required to submit tons of requirements before your loan will get processed? Well, if you have a credit card you won’t experience such hassle. Credit card companies provides flexible installment terms with 0% interest. Just make sure to pay off the monthly staggered payment required to avoid additional interest fees on your next statement cycle.
I had used my credit card in purchasing some pieces of furniture at home using the flexible payment plan of my card provider. Though I may have enough funds to cover for the expenses, but I didn’t want to deplete my available cash. It’s wiser to always have an available cash as an emergency fund for unexpected expenses, right?
First Furniture at home
Emergency Source of Funds
I was expecting to have a normal delivery when I gave birth to my son but things happened differently from what we were preparing. I had an emergency Caesarian Delivery which required triple the amount of cash that I and my husband had prepared for my delivery. Good thing I had my credit card to save us from the unforeseen event.
My Caesarian Section Delivered Baby Boy
Credit cards can also function as an ATM. If in case you need cash, you only need to enter your credit card PIN and your problem is solved.
Protection
With lots of crimes about robbery and theft, it is not advisable to bring thousands of cash especially if we are traveling to places that we are not familiar yet. Once our cash is stolen, it’s gone forever. Unlike credit cards, we can have it reported as stolen to our financial provider and have it replaced. I used my card during our honeymoon trip. It was very convenient with lesser stress in paying for our expenses abroad.
Honeymoon Trip
For card holders who are thinking of closing their cards and dismissing credit card usage in their financial life, please think and analyze first these benefits that you can avail, before totally cancelling your cards. For non-card holders, research more about the pros and cons of having a card and assess yourselves if you are responsible enough to manage it, before declining an offer for a new card application.
