What Services Do You Receive Through a Credit Card?
A credit card can be one of the best financial tools you have, as long as you use it properly and with caution. There are many benefits of having a SoFi credit card that can help you save money, improve your credit score, and more. Here are ten great benefits of owning a credit card that you should be aware of as you decide whether or not to apply for one.
1. Buy On Credit
Buy anything on credit, and pay later. Your monthly budget will not affect, even if you buy high-value items on credit.
2. Most Accepted Method of Payment
Rent, Fuel, Food, and any other costs. You can even make travel payments with your credit card. With no cash in hand, you don’t have to worry about carrying money or paying extra for ATM fees.
3. Interest-Free Cash Withdrawals
If you need cash for something important, you can make use of your credit card to withdraw money at no interest. It can come very handy when there is a family emergency or an unexpected expense in some necessary thing that arrives unexpectedly.
4. Unlimited Reward Points
These credit cards also help you earn reward points faster. If you shop online or pay at restaurants often, it would be a good idea to have one. According to SoFi , “Not only are they redeemable anywhere, they never expire.”
5. Insurance Coverage
Credit cards offer various types of free insurance benefits. These include coverage for car rental insurance, protection from fraudulent transactions, lost luggage protection, etc.
6. Travel Perks
If you use your credit card to purchase travel, you can earn miles toward free flights, hotels, or car rentals. Simply make all travel-related charges on your credit card and then pay them off every month to avoid paying interest.
7. Discounts and Cashbacks
A credit card may also help you get discounts and cashbacks. When using a debit card, you are limited to what your bank or credit union offers. But with a credit card, there is no limit on how much you can save. This is because some merchants offer special promotions to accept their cards.
8. Improve Your Credit Score
You can build or rebuild your credit history by paying off your balance in full each month. This shows lenders that you are responsible with money and helps to increase your credit score over time.
9. Offers Safety
A credit card is a safe way to carry cash with you. The money stays in an account, so someone can’t steal it even if your wallet is lost or stolen.
10. Keep Track of Your Expenses
Credit card statements track all of your monthly expenses. This oversight can be a great help in financial planning and saving money.
Credit cards can create financial problems if you make impulsive purchases or fail to pay off your balance at the end of each month. However, credit cards are not harmful to the finances of the majority of consumers.