Top 5 Reasons Why You Should Get a Credit Card

An average person typically has three things in his or her wallet - an ID, money and a credit card. Millions and millions of people bank on credit cards for their purchases primarily because they don't need to make a cash outlay at the time of the purchase. They can basically pay on some future time that they desire, such time when they already have dollars to spend.

But here you are convincing yourself why you need to get one. You've heard and you know that there are associated costs when you apply and maintain a credit account. But what you didn't know is that the cost is all worth it. And perhaps the reason why you are too apprehensive about it is your lack of understanding how it really works. Here are the basic facts that might convince you to take advantage of what such a small piece of card can offer you.

Luxury in a swipe

You can make purchases without having to carry too much money in your wallet. As opposed to debit cards, credit cards do not take away money from your account but allows you to borrow money from the issuer of the card. So that means that you can actually buy something even if you still need to earn what you need to pay for. And you cannot only make cashless shopping but you can also make withdrawals or cash advances for cash payments that you need to make.

Acceptability and accessibility

Credit cards are honored almost everywhere. A lot of establishments allow the use of these cards as they serve an easy way to collect payments. You can also make cash advances on millions of automated machines locally and abroad. The innovation in technology has brought significant developments in making your credit account highly accessible. You can even look into your payments and transactions without going through a long wait for your monthly bill. You can go online and view what's coming in and out of your account so you can monitor your transactions.

Ease in application

Getting a card is fast and easy. You don't have to go through the pain of rushing at your nearest bank to make an application. You can simply go online and submit your information and requirements. Compared to other credit facilities like mortgages, you don't have to undergo rigid evaluation that will incur you some transaction costs and require you a lot of documents. Processing period varies from two to four weeks, depending on the issuer. Some banks actually do take up some time, but typically, three months is the maximum. For corporate cards like Capital One business card, the company oftentimes play an active role in the application and processing of your account.

Flexibility in payment

Interest rates are not something that you need to worry about. They sound huge but they are actually determined by the rate or the percentage at which you are charged. They vary from issuer to issuer and typically range from 2.5 to 4%. However, they are offered at a reasonable rate, which is actually predetermined on specific credit cards. So it is up to you as a consumer to choose which bank offers the lowest rate and charges you less costs like annual fees and surcharges. Due to the fact that a lot of banks are offering this product, interest has gone down to a more competitive rate and allows you to compare features. In addition, there is no pressure in making payments. Compared to other credit facilities that require you either to pay in full or a specified amount, a credit card enables you to make payments at your discretion. It typically requires you to pay a very minimum amount, sometimes just about the interest cost that you have incurred. However, if you pay your purchases on time, you might be waived of the interest.

Perks and rebates

Some credit cards entitle users to enjoy discounts and rebates on purchases. Some banks utilize a point system at which you gain points for every fraction of your transaction and allow you to convert the points to valuable items. Items or stores on promotion enable you to get freebies and cards for specific commodities provide rebates for users.