5 Reasons to Start Using Credit Cards Now

Cash has traditionally been the main medium of transaction. However, this is getting tough competition from plastic money, especially credit cards. These cards have emerged as a useful mode of transacting whether online or offline. They are not only convenient but safe too and offer several advantages over using cash. 

Let us look at the various benefits offered by credit cards with no annual fee.

Build Your Credit Score

The credit card offers you easy access to short-term credit that does not involve any charges if you pay back the used amount by the due date. Timely payment of your credit card bills and other payments helps you build a good credit score which is an important criterion considered by banks for sanctioning personal and other loans. 

Keeping your credit utilization level low by not using the full credit limit sanctioned to your will also help you build a good credit score.

It Aids in Budgeting

Credit card transactions can easily be tracked and used to plan your future spending. You can categorize and analyze the various expenses and decide your future course. Your credit card statement helps you identify expenses that are unnecessary and can be avoided. 

Again, the credit card can be used to manage your cash flows. You can make your regular payments or make expenses by using your credit card even if your paycheck has not arrived. And once your salary gets credited, you can pay your credit card bills before the due date.

Get Perks for Using Credit Cards

Credit card companies reward their customers by offering them reward points or cash backs or access to money-saving offers. So when you use your credit card for your purchases, you are not only getting access to short-term credit, but also rewards that can be converted into cash or other attractive offers. 

The best credit cards also come with additional perks like access to the airport lounges, travel insurance and special discount offers.

They Are Acceptable Everywhere

A major reason why you should submit an application for a credit card is that it is convenient to use and carry and is accepted at most of the stores. You can even make your ticket and hotel bookings or pay your bills or carry out any transaction by using your credit card. Certain service providers prefer credit cards over cash.

They Are Cost-Effective

While the use of credit cards does involve certain charges, you can easily avoid some of them. A lifetime free credit card is an excellent choice as it does not involve any annual fees. You can avoid interest charges on your card by ensuring that you make your credit card bill payment in full. Timely payment of your dues will also ensure that you do not have to pay any penalty or late fees. Also, the rewards and the cash backs that you earn your credit cards may offset the cost of using them.