Do you ever feel carrying a wallet full of cash is such a hassle? It’s heavy and bulky, and it can make you feel paranoid about losing it. But, thanks to credit cards, you can now easily make purchases without carrying cash. And, with the numerous features and benefits they offer, using a credit card can make your life much easier. So, let’s dive into the details of Credit Card Features and benefits.
Top 5 Must-Know Credit Cards Features
- Credit Limit: Setting Limits on Spending
A credit limit is the maximum amount you can spend on your credit card. It is determined based on your credit score, credit history, and income. When you Apply for a New Credit Card, the issuer sets a credit limit for you. The limit can vary from card to card; some cards offer higher credit limits than others. You can also request a credit limit increase over time based on your usage and payment history.
- Rewards Program: Get Rewarded for Using Your Card
Rewards programs are a popular credit cards feature , as they allow you to earn points, miles, or cash back for every purchase you make using your card. Rewards can be redeemed for gift cards, merchandise, travel, or statement credits. Some credit cards offer a flat rate of rewards for all purchases, while others offer bonus rewards for specific categories such as dining, groceries, gas, or travel. Be sure to choose a card with a rewards program that matches your spending habits and preferences.
- Interest Rates: Borrowing Money with Credit
Interest rates are a key factor when applying for a credit card, as they determine the cost of borrowing money. Credit cards charge interest on the outstanding balance that you carry from month to month, and the interest rates can vary depending on the card issuer and your credit score. Some cards offer a low introductory APR for a limited time, while others have a higher ongoing APR. Make sure to read the fine print and understand the interest rates on your credit card to avoid paying more in interest than you need to.
- Fees: Paying for Using Your Card
Credit cards come with various fees such as an annual fee, late payment fee, foreign transaction fee, balance transfer fee, and cash advance fee. Some cards offer waived annual fees for the first year or waive fees if you spend a certain amount on the card. Read the terms and conditions carefully to understand the fees associated with your credit card and avoid surprises.
- Security Features: Protecting Your Card and Identity
Credit cards come with security features, such as chip technology, PIN, and fraud protection, that help prevent unauthorised card use. Some cards also offer zero-liability protection, which means you won’t be responsible for any unauthorised charges on your card. Be sure to keep your card safe and report any suspicious activity to your card issuer promptly.
Primary Benefits of Credit Cards — Process Payments with Ease!
- Convenience
Credit cards offer a convenient and hassle-free way to make payments online or in-store. With a swipe or a tap, you can make purchases without carrying cash or writing a check. Some cards also offer contactless payment options, such as Apple Pay or Google Pay, which allow you to make payments with your mobile device. You can also set up automatic payments for recurring bills or payments to simplify your finances.
- Build Credit
Using a credit card responsibly can help you build your credit score, which is important for future loans. Make payments on time and keep your credit utilisation low to maximise your credit score. A higher credit score can also help you qualify for better card offers, such as lower interest rates, higher credit limits, and better rewards programs.
- Travel Benefits
Many credit cards offer travel benefits such as travel insurance, trip cancellation coverage, and roadside assistance. Some cards offer perks such as airport lounge access, free checked bags, and priority boarding. If you travel frequently, choosing a credit card with travel benefits can save you money and provide added peace of mind.
- Purchase Protection
Credit cards also offer purchase protection, which can come in handy if you encounter issues with a purchase. Some cards offer extended warranty protection, price protection, and purchase protection that can reimburse you for eligible purchases. Make sure to read the terms and conditions of your credit card to understand the purchase protection benefits and how to file a claim if needed.
- Cash Flow Management
Using a credit card can also help you manage your finances by providing a clear record of your expenses. You can easily track your spending and set a budget for your monthly expenses. Some cards also offer tools such as spending alerts or budgeting apps to help you stay on track with your finances.
Final Words
Credit cards offer numerous features and benefits that can make your life easier, from convenient payment options to travel perks and so much more. However, it’s important to use your credit card responsibly and understand the terms and conditions to avoid any fees or interest charges. When choosing a credit card, make sure you consider the features and benefits that match your spending habits and financial goals. With the right credit card, you can enjoy the convenience and rewards of using credit while controlling your finances.
