Smart Ways to Use Your Credit Card


Credit cards can cost you a great deal in transaction costs, annual fees and interest charges, which usually makes a lot of people who aren’t disciplined enough to make payments on it end up in debt. 

But people still purchase them because it’s a way of borrowing money, and there are many cases where a credit card can come in handy.  

  • To build your credit history  

Credit cards when used responsibly improve your credit score because credit card companies report your payment activity to the credit bureaus. This in turn can assist you should you choose down the line to want to obtain additional credit.  

Therefore be disciplined enough to make payments on your credit card by paying the balance off in full and only charging what you can afford to pay off each month. This can help you to not end up in debt. 

It can also assist you in gaining a high credit score and can mean you pay an interest rate several points lower on insurance or loans of home or car than the rate someone with a poor credit history would pay; saving you money over the life of the loan. 

  • Use your credit card for travel 

Most credit cards are accepted around the world making it easy for certain purchases. Rental car companies and hotels want customers to pay with credit cards because it can be easier to charge customers for any damage they cause to a room or a car this way. Most credit cards automatically come with insurance of rental car or travel insurance or product warranties.  

  • Use your credit card to shop online  

When making purchases online, you may want to opt for paying with credit card so the transaction is protected. Like from your card being used fraudulently you’ll have liability protection and protection from dispute of charges.  



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