Importance of credit cards

7 Compelling Reasons to Apply For a Credit Card

A credit card has got a bad name and most financial experts spend a lot of time trying to convince people from using credit cards – and with good reason. The importance of credit cards is ridiculed because most people misuse it and end up being in an out of control debt.

Contrary to the popular belief, a credit card is an exceptionally good financial product, better than a debit card, if used responsibly. A great credit card that you can apply for is MoneyTap Credit Card 2.0; it offers you the benefits of a personal loan and a credit card rolled into an excellent supercharged credit card.

importance of credit card

Let’s examine the reasons to use credit cards:

1. Great for building or boosting your credit score: Swiping your credit card to buy things and then repaying the amount every month helps in establishing or rebuilding a good credit score. However, you need to be cautious. Don’t forget to spend within the limits you can afford and pay in full each month so that the interest doesn’t pile up.

2. Quick and convenient to use: If you carry cash, you are either at risk of it being stolen or lost. Credit cards are convenient, easy to carry tools that make the checkout process easy. You can pay for anything small or big, with just a swipe of the card.

3. Great as a safety net : Most people don’t have cash stacked up in homes to cater to an emergency that requires financial attention. Emergencies can be as small as your fridge breaking down or as big as an immediate hospitalization. A credit card in such types of emergencies is a handy tool.

MoneyTap Credit Card 2.0 is an excellent financial tool in emergencies like these. Just like any other credit card, MoneyTap Credit Card 2.0 has a credit limit, but this credit limit is given to you in the form of a line of credit. You can borrow what you need from your line of credit and pay it back in affordable EMIs. An interesting fact about MoneyTap’s credit card is that unlike traditional credit cards, you pay interest only on the amount you borrow and not on the entire credit limit.

4. Best for earning frequent flyer miles: With a credit card, your reward options are endless. And frequent flyer miles predate all the perks of using a credit card. If you travel a lot, apply for a credit card that gives you more value in terms of frequent flyer miles. For each dollar you spent, you earn some miles, which you can later redeem for airline tickets or hotel stays.

5. Protects your purchases: Your credit card purchases are protected. If your credit card is stolen and there are unauthorized charges on your card, which you are unaware of, your credit card company calls you to verify the purchases. If you haven’t made the purchases, the credit card is blocked immediately. You can then dispute the charges.

6. Rewards you well: 

A credit card rewards you with a lot more than just air miles. You get rewards in the form of cashback, travel, stay in hotels, great discounts on food, fuel, entertainment and shopping.

7. Lets you shop online conveniently and safely: 

Credit cards are the most preferred means of buying things online. Its popularity is not only because of the convenience but also because of the safety it offers.
Shoppers trust online transactions to be the safest because the shopping sites have 128-bit security embedded in them. The use of a credit card also adds to the security of the transactions. Moreover, if there are issues with the items you have bought online and if you have paid for them with your credit card, your credit card company may pay for your loss and reimburse the amount.

Bottom line: While debt is expensive, there are ways you can use a credit card safely and productively. It is important to remember that using a credit card is not same as carrying debt. Using credit card helps you build or boost your credit score, rewards you and protects your purchases. Debt occurs when you fail to use the credit card responsibly by not spending within your means and not paying the amount in full each month. So, if you are apprehensive about getting a credit card, don’t be as long as you are financially committed – apply for a credit card for its undeniable benefits.

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