Credit cards aren’t just plastic cards with a cash limit. Some credit cards can reward cardholders in several ways. The following are five benefits of credit cards that people should know about.
One benefit of owning a credit card is the purchasing power it offers the cardholder. Cash is limiting; a person can only spend what they have. Life can throw many obstacles at a person, some of which can cost more than one has. When this happens, a credit card can make a difference. These cards can get a person with a broken-down car on the road again. These cards can turn a person’s desire into possession in the blink of an eye.
Access to Rewards
Credit cards offer rewards. This isn’t true for every credit card, but many companies offer some kind of reward. For example, according to Lantern by SoFi, credit cards like the loft credit card
give folks access to rewards. For example, for “every dollar spent in-store or online at Ann Taylor or LOFT, Ann Taylor Factory Store and LOFT Outlet,” the card owner will get five points. Once the cardholder reaches 500 points, that person will get five dollars.
It’s not something people always think about, but credit cards are safer for various reasons. First, credit card companies will refund money stolen from the cardholder; that’s something cash could never do. That’s not all, though. Carrying cash around is dangerous. All it takes is one desperate person to notice the cash, and now the person with the cash is a target. With a credit card, a person doesn’t have to carry cash around. It can replace cash, can be tracked easily and gets blocked if stolen.
Traveling is much easier with a credit card. This plastic card is accepted throughout the world. Travelers don’t have to carry cash around, which, as mentioned earlier, is much safer. The card company could raise the limit with just one call if a traveler needs more cash. So it’s hard for a traveler to make additional cash on the road. Credit card companies know this and make a person’s travels much more accessible. However, some credit cards focus on travelers by offering rewards for certain airlines or discounts to use at car rental places.
Several credit card companies offer insurance coverage of some sort. Some may cover the cardholder while traveling; others may cover the holder against personal injuries. It’s essential that those looking for a credit card find out what kind of insurance comes with the credit card. This is something people don’t always ask or inquire about. It’s a good perk to have, and it gives people an opportunity to choose a better credit card when they’re comparing options.
These are some significant benefits of owning a credit card. There are many others. Each credit card is different, so read the fine print to find out more.
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