Why do we use credit cards? what is the benefit?

A credit card is a special card issued by banks to organizations and individuals. It is a consumer credit voucher. Credit cards have many functions. Credit cards can be used directly to pay by "swiping".

Compared with ordinary bank savings cards, the most convenient thing about credit cards is that you can spend the credit limit even if you don't have cash,min pay as long as you repay the consumed amount on time before the repayment date.

When we use a credit card, the bank actually advances the money to the merchant first, that is, consumes it first and then repays it.ofw quick cash loan online And the cash we have on hand can be used flexibly.

1. Owe less favors

When you are in urgent need of cash to meet an urgent need, you will inevitably feel embarrassed to ask your relatives and friends, so you can overdraft your credit card. Although the interest rate of 0.5% is like a loan shark,debt consolidation it is up to you to weigh what is more important than owing favors to others.

2. Relatively safe

Try to swipe your card when making purchases, so you can carry less cash with you. Even if it is stolen or lost, the loss can be reduced. If cash is lost, the possibility of getting it back is slim; but credit cards are different. Even if they are stolen or lost, you can report the loss as soon as you find it. Even if your credit card is stolen without a password, it is easy to trace it. Much more - because every card swipe is recorded, not to mention that the bank will bear the losses 48 hours or even 72 hours before the loss is reported. In addition, if you spend cash, you may get counterfeit money at some point!

3. Build personal credit

Credit is an inexhaustible treasury. Having credit is equivalent to having wealth. However, our credit with banks and friends is not very strong from the beginning. Credit needs to be managed and accumulated bit by bit.

4. Save money

Many banks' credit cards have cooperation or promotions with merchants. For example, you can get cash back if you swipe the card as much as you swipe, or you can get 20% or 50% off when watching a movie or eating Western food. In addition, credit card points can also be redeemed for some gifts in daily life, and there are even some lottery activities.

5. Relieve economic pressure

If there is a certain amount of financial pressure to pay a relatively large amount in one time, you can use a credit card to pay in installments and enjoy your favorite items in advance. Although you need to pay a certain handling fee, it is better than being able to enjoy it for half a year or even a year in advance. Compared with the intangible value generated, I think it is worth it. Of course, you should spend within your means in advance.

6. Convenient for financial management

Your credit card will receive a detailed consumption statement in the form of paper or email after the statement date. From the statement, you can clearly understand your consumption and expenditures in the previous month.

7. Convenience

If the credit card has the "VISA" or "MasterCard" logo, you can directly swipe the card for consumption abroad, while the debit card or cash must be exchanged first; in addition, it is also very convenient to use the credit card to book air tickets and hotels, phone or online shopping and car rentals, etc. , and debit cards may not have this benefit - because in addition to direct swiping, credit cards also have a "pre-authorization" function; and there is no embarrassment of not having change.

8. Additional benefits

Some credit cards also provide free accident insurance, medical insurance, tow car washing, and enjoy services such as banks or airport VIP lounges. You can also redeem points for flights, gasoline, etc.

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