Having a stable online job means having a steady income. And having a steady income means you can now afford to get many things, including credit cards.
But first, what is a credit card? A credit card is a metal or plastic card used to pay for products or services via credit.
Although usually issued by banks, stores and other financial institutions can also issue credit cards. Users essentially are borrowing funds for purchases to be paid later.
Credit cards offer several perks to their users, such as reward programs and a universally accepted payment method.
Besides these, here are some other advantages of credit cards and tips on how to use them well.
Reward Points and Programs.
One of the main advantages of credit cards is the reward points you get every time you use them.
Points are rewarded depending on the amount spent on one transaction, which varies from one credit card to the next. For example, each Php 40 spent using your credit card can get you one point. But many credit cards offer bonus points when you spend on things like gasoline, restaurant meals, or groceries.
Once you’ve gained enough points, you can exchange or convert these into various rewards. The
se could be travel points, discounts, gift cards from affiliate stores, or you can use your points to purchase products or services.
This benefit is great if your credit card rewards are aligned with your hobbies or spending habits.
Here’s a comprehensive guide on rewards program of the best credit cards in the Philippines.
Purchasing items using your credit card also has the benefit of making it easier to return defective products or dispute a charge.
Your credit card company can withhold payment from your seller until they resolve an issue you raised. This setup incentivizes companies to provide quality goods and services and to address concerns properly – otherwise, they won’t get paid.
In addition, it’s much easier to protect yourself from fraud when paying for your purchases with credit cards.
If someone steals your credit card, you can immediately notify your credit card company. They can help reverse charges if the thief tries to purchase anything with your credit card thereafter.
Besides rewards, one advantage of credit cards is insurance. Many credit cards nowadays come with rental car insurance, travel insurance, and product warranties.
Credit Cards Are a Universal Payment Method.
Unlike debit cards, most businesses accept credit cards as a mode of payment. In fact, companies like hotels and car rentals prefer them because it’s easier to charge for any damages.
In addition, if you’re traveling abroad and you’re short on cash, you don’t have to worry because you can use your credit card for the time being.
No need to go to a money changer. All it takes is one quick swipe with your card, and you’re good to go.
It Helps You Keep Track of Your Spending and Build Credit.
Credit card transactions can also help you track your spending. You can view your transactions on your monthly statement and online account. (So you know whether you should tone down your Shopee or Lazada shopping sprees.)
And the more you spend with your credit card (responsibly, of course), the better your credit rating gets. Having a good credit history will help you secure loans at better interest rates, should you need them in the future.
Some Tips For Making the Most Out of Your Credit Cards.
Because credit cards are so easy to use, it’s all too easy to go on spending sprees. To help you avoid this, here are some tips you should always follow:
Record Your Expenses.
Yes, your credit card already does this for you, but it also helps you keep track of your spending on your own. Doing so builds discipline so you can make better decisions regarding your expenses.
Build Up Your Credit Score.
If you’re planning on making a big purchase, such as a car or a house, it’s a wise move to build up your credit score. A high credit score proves to your bank or credit card company that they can trust you to pay your debts on time.
Treat Your Credit Card as a Last Resort.
Using our Credit cards is so convenient that we sometimes forget that we’ll have to pay for what we bought later. This could become problematic because it’s a slippery slope towards overspending.
If you want to limit your usage of credit cards, practice using them only when necessary. Try to spend only the money you have at hand so you don’t spend money you may not have.
One Swipe and You’re Good to Go!
Given how fast-paced life is today, having a credit card at hand is a great advantage. It enables you to purchase products or services even without any physical cash at hand – while rewarding you for using it constantly and protecting you from fraud.
Of course, if you want to enjoy these advantages of credit cards, you need to have a stable job first. And if you’re looking for online work at home, Remote Staff has you covered.
There is a wide variety of jobs available for you to choose from, so you won’t run out of options. Good luck!