Why Do I Need A Credit Card?: What Is A Credit Card?

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Why Do I Need A Credit Card? You must have been hearing about a credit card before and you’re eager to know how important it is to have one. It’s very much possible to carry out your financial activities without a credit card, but having a CC in your purse is a great idea.

However, it might be worth getting a credit card to build your credit rating. As long as you pay your balance in full every month, it will help to improve your credit score. With a credit card, if you fail to pay off your debt each month, then get ready to pay for extra charges.

Why Do I Need A Credit Card?

 Why Do I Need A Credit Card

There are lots of reasons why you will need CC. Which one of them is the confidence to shop. As a cardholder, there’s nothing to fear when you want to make purchases because your CC is ever ready to pay your bills. How does it work? Make purchases within your credit limit, the bank that issued your CC will pay the merchant, with the mindset you’ll pay back to them the amount plus the charges agreed.  Moreover, as a cardholder, you’re entitled to rewards, points, bonuses, miles with most credit cards once you make eligible purchases. Do you see it? You can also earn as you shop, with your credit cards. Lets quickly look at the advantages of getting a CC, but before that, check out what a CC is about beneath.

What Is A Credit Card?

A credit card is a small plastic material, offered by banks to enable cardholders to make purchases, while the bank/financial institution pays the seller or merchant, based on the agreed terms that you will pay back with the interest charges.

 Advantages Of Credit Card

Find Out the advantages of having a credit card.

  • Enjoy One time bonuses, with some card. Some cards issues bonus points to new cardholders on eligible purchases with their card.
  • Offers amazing cashback. Some CC comes with outstanding cashback rewards when they make purchases using the card.
  • Rewards points. It is set to let Members earn one or more points on every $1 they spend. These points earned are mostly redeemed for gift cards, travel, restaurant etc.
  • Offers frequent flyer miles. Some of the travel CC comes with miles. Cardholders earn miles inflight purchases.
  • It gives you peace of mind. It’s handy and offers free additional consumer protection.
  • With a good credit report gotten from a CC, you can buy a car, house and get you the best interest rates.
  • Enjoy free insurance
  • It helps to protect your money. You will hardly lose your money with your CC, even if your card is missing, as long as you card details are intact. You have nothing to fear

 Credit Card Disadvantages

  • It can lead to overspending
  • Most CC offers high rates of interest
  • Have credit damage when you missed repayments.
  • Some fraud schemes attack CC.
  • Some offer cash back fees and rates.
  • Some cards come with an annual fee
  • Some businesses apply a surcharge when you pay using a CC.

These are the basic disadvantages of using a CC.

 How To Use A Credit Card

To use this is very simple. All you need is to know how to access your account and make payment as after selecting the items you want to buy.

To login

  • visit your browser and search for the CC
  • Locate the CC official website
  • Find the login button and click on it.
  • Provide your login details.
  • Then click on the login

How to pay your bills, after accessing your account, find the pay/payment button and tap on it. Then provide the required data, like your account number, SSN, date of birth, amount etc. Follow the onscreen directives.

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