1. Build Credit
For most people, building good credit is an important goal. You could be using your card for many different purchases, but keep in mind how you treat this privilege could be reported to the three main credit bureaus.
When using your credit:
- Make responsible purchases you’ll be able to pay back.
- Consistently make payments on time.
- Check your credit report and card statements for errors or fraud.
2. Peaceful Travel Plans
Whether you’re traveling for business or pleasure, it’s often smart to pay with your credit card.
Generally, when we use a credit card to book travel accommodations, we have the peace of mind knowing there is a paper trail with purchase amounts, merchants or retailers, and dates we can reference.
While traveling, a credit card is simply an easy and fast way to buy things.
And safer, too. If your card is stolen, you have a Customer Service team who can cancel your card, track potentially fraudulent purchases, and get you a new replacement card. Those things aren’t so easy to do with cash.
3. Safer Online Purchases
Credit cards can offer protection against fraud, which may be truly invaluable, especially when shopping online.
It’s no secret that e-commerce fraud is on the rise. In fact, nearly 20% of online transactions between Thanksgiving and Cyber Monday 2021 were suspected as fraudulent.
While credit cards don’t eliminate fraud, they can provide protections against it. Further, if you receive the wrong item or a defective product, the chargeback process can help you get your money back.
Or, if you purchase an item from an online vendor and never receive it, or if you’re billed incorrectly for a service, you may be able to dispute the charge and get reimbursed.
When used correctly, a credit card empowers you to pay down debts, to increase your credit, and to enhance your financial freedom.
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