One of the biggest misconceptions people hold is that one should avoid using credit cards and rather opt for debit cards, as a credit card makes one more prone to falling into great debt. Many financial advisors also advise people to do the same based on most people’s experience, while here’s the actual deal, if one knows how to spend responsibly, they are likely to handle credit cards and entail all the benefits that a prepaid credit card may hold. The article below thoroughly examines the reasons why one should use credit cards.
Initial bonuses and offers:
Initially, when an account is open for a particular user, they are likely to inherit many one-time bonuses that differ from bank to bank. Still, however, one thing is assured, there is nothing close to exciting and valuable than a good bonus offer provided by a bank. Sometimes banks offer an initial bonus point of 150 dollars (most probably with a given condition) and later on may offer discounts that can be redeemed if the user happens to spend a certain amount.
Cashback:
The initial hype for the cashback scheme started in the United States-when one user of the card happens to use their card; they get approximately a percent of all their goods as purchases in the form of cash that is usually rebated later on. Nowadays, due to the demand for more and more benefits, banks offer around 2 to 6 percent of the cashback scheme (sometimes on certain types of purchases and transactions), which further lead to spending caps, annually or quarterly. Users need to look out for banks that don’t charge an extremely high interest rate (the lower, the better) while offering a fair deal of returns and rewards.
Points in the form of rewards:
Frequent spenders would be aware that by each financial translation they happen to make, they are prone to get about two to three dollars that get deposited in their reward scheme. These points can be fully redeemed after a particular condition (differs from bank to bank) is met. However, these points could be used in the following consecutive transaction in relation to travelling, merchandise, particular restaurants (that have tie-ups with the bank) and other given options.
Security and protection:
There is a comparative safety line between debit cards and credit cards because the debit card functions with savings that directly leaves the account based on transactions. However, for credit cards, only legitimate transactions involve a double-check through an email platform or any scheduled one. And in the scenario of a thief using a debit card for a big transaction, most banks call the user’s registered phone number to double-check and approve the transaction, which gives a sense of safety and security in terms of the money held in the account.
It acts as a backup during hard times:
For example, a house owner hires a plumber to add pressure and fit pipes and solve certain issues in the house. While the plumber does 80 percent of the job, assuring the house owner that the 100 percent would be done in no time while charging the owner a big amount, let’s say 1000 dollars or so. Suppose the owner decides to pay with their prepaid credit card and later finds out that they have been a victim of a fraud situation. In that case, they can issue the complaint to the following bank or authority while having the authority and rights to cut out the fraud then and there, receiving their lost money back from the plumber, in addition to finding a quick fix to the problem with the help of the following bank (due to the situation being strangled up based on a financial translation), which then leads the issuer to a fix with the same plumber or help to find for another appropriate plumber with additional discounts from the bank’s connection and contacts.
