The credit card companies of the world are often vilified by consumers and financial advisors who suggest that owning a credit card is the absolute worst thing that a responsible consumer can do. The reason this myth is perpetuated throughout the world is that many people receive credit card offers in the mail and immediately sign up for a credit card before they have weighed the cost and evaluated their current financial situation. This often happens with individuals who are between the ages of twenty and thirty. During this time period, inexperienced consumers accept a variety of credit card offers, max out their credit cards, and then get slammed with huge monthly payments that they simply cannot afford.
Credit Card Benefits
This is the worst way to use credit cards, and if you pursue this financial route, you will have financial troubles in the near future. However, the fact that this is an issue that affects consumers does not necessarily mean that all credit card offers are dangerous. In fact, credit cards can actually be beneficial to consumers. Not only will consumers be able to pay for expensive items over a longer period of time and boost their credit score with on-time payments, but there are credit card benefits and incredible perks to valued customers. Here are a few examples:
Earn Cash Back on Purchases
Some credit card companies give a percentage of a consumer’s expenditures back to the customer at the end of the month. If, for example, you use a credit card to purchase fuel, clothing, or restaurant food, you can earn cash back, and this cash will show up directly in your credit card account or be sent in the mail via check.
Save Money with Retail Shopping
You can also receive bonus points and gift cards to your favorite retail establishments by using a credit card. Some credit card companies have deals with big name retailers, and these retailers offer hefty discounts for individuals who use a specific credit card when making purchases.
See the World with Free Airline Miles
One of the most valuable credit card benefits is a customer’s ability to earn airplane miles simply by using a credit card to make basic purchases. Each time you buy something with a credit card, you’ll earn travel miles. When you get a certain amount of miles, you can exchange them for a real airline ticket to the destination of your choice.