The ability to purchase and pay is measured by financial management, such as cash, debit cards, and credit cards. All require funds to conduct transactions.
However, using a credit card offers greater payment flexibility, allowing someone to purchase products and pay within a specified timeframe. Furthermore, there are benefits to the various attractive promotions offered by credit cards.
Benefits of Credit Cards and Reasons to Have one
A credit card allows someone to borrow money from a bank under the agreement that it will be repaid on the due date. When used wisely and effectively, a credit card can be a valuable financial tool. To understand why a credit card is necessary, consider the following discussion:
1. Learn to manage finances
For those who aren't good at managing their finances, recording expenses can be a dauting task. However, using a credit card provides a comprehensive and detailed overview of monthly expenses.
Unlike using cash, which requires record-keeping, using a credit card allows someone to track their budget and expenses. This makes it easier for anyone to know where their money is being spent. Using a credit card helps someone be responsible and manage their finance wisely.
2. Pay by Installments
To realize desired items, someone may have limited funds, which prevents them from purchasing them. Using a credit card eliminates this concern
Credit cards typically offer installment payment options. This allows cardholders to purchase products without having to pay all at once, instead paying in installments over a period of time.
3. Makes it easier to travel on holiday abroad
Traveling abroad requires a lot of preparation, one of which is exchanging foreign currency. The process is quite tedious and time-consuming. For busy people unfamiliar with the process, this can be a hassle.
Credit cards are a convenient and relatively safe way to pay for all your needs while abroad. This eliminates the need to exchange money and carry large amounts of cash. Credit cards also provide easy access to foreign currency while traveling abroad at competitive rates.
4. More profitable transactions with credit cards
Not only are they a highly useful payment option, but they also serve as a means of generating benefits. Credit cards offer greater purchasing power and the opportunity to earn rewards
Rewards don't always have to be in the form of goods, but rather cashback, discounts, points/rewards that can be redeemed for vacation tickets, entertainment, shopping, and other prizes. With these benefits, credit card holders actually save more.
Those are the various benefits of credit card for their owners. Interested in applying for one? BCA offers a variety of credit card options with various benefits to suit your needs. Check out the full details here.