06 Jun Why Credit Card Are Beneficial Financial Tools
Although credit cards often get misrepresented, the truth is they offer a number of benefits and advantages that, when used properly, make them a wonderful financial tool. A credit card will not only offer you a number of benefits, but you can also use it to cover short-term expenses, finance certain items, and more. It is relatively easy to get one if your credit is in good standing. You can also use it to help repair poor credit history and credit score, which will often take many months to repair but decrease rapidly.
History and Score
Getting a credit card can help to improve or establish credit history, as well as increase your credit score over time. Your credit score will directly affect a wide range of things, primarily interest rates, and you should be forced to pay less for financing with a higher score. A high score may give you the opportunity to pay several point lower on a mortgage loan compared to someone with a poor credit history, meaning thousands of dollars saved in the long run.
The same is true of any auto loans taken out. A great credit score can mean paying less on a number of insurance products, such as renter’s insurance, condo insurance, and automobile insurance. It can even help improve the chances of getting a great job position, as some potential employees will pull the credit history of employees and dismiss those applicants with low scores. Therefore, it is time for you to look into the best credit cards in Malaysia available for application to have you save thousands in the future.
Having a credit card can also save you money by opening up the Internet and purchases through it, as most online stores offer only the option of paying by card. In many instances, the only way you can pay for an option is with a credit card, and you may end up being forced to pay more for an item if you buy at a physical location. Such an amount is also added to the cost of driving to the new location, which can significantly increase the eventual investment just to get one item.
Although it is best to pay off your credit balance each month in full, you never know when you might find yourself in an emergency situation. For example, you never know if you might find yourself stranded away from home one night and in need of accommodations. Having a credit card will ensure you have a warm place to stay until you can find your way home again, which is one solution you can use instantly.
With many different banks offering credit cards, it is now common for them to come with added benefits as an incentive. Cash back and other benefits allow you to save even more money as you use your card, and some even come with a predetermined number of months without interest if you purchase a certain item or meet certain qualifications. The long-term benefits are ones that should be most important.