Credit cards have become somewhat of a necessity these days. They are handy when shopping online or abroad and booking a flight without them seems like “Mission Impossible” without the special effects – at least, I found that in the past. Many of us still get scared when hearing the word ‘credit’ though, automatically connecting it with debt and financial dependency. Credit cards however can be more beneficial than you would think at first glance.
They allow you to be flexible when shopping – giving you the option to pay for goods even if the cash machine isn’t working or anything unforeseen comes your way. There is always something that comes up when you are not prepared for it. Believe me! I’ve been there – stranded at an airport with no functioning cash machine and no chance to get back home when our flight was cancelled. I was 6 months pregnant and had to sleep on the floor next to people being sick. Sounds like a lovely start to your Christmas holiday, doesn’t it?
Anyway, I learned the hard way and have now taken steps to make sure that the same won’t happen again. It was bad enough for just Ben and me – I don’t need to go through the same thing with an active toddler.
When I looked into getting a credit card, I was surprised at just how many different cards there are available on the market. There are cards tailored to so many needs and when comparing credit card providers, I found that more and more companies try offering potential customers something that their competitors completely ignored: rewards!
There are reward credit cards introducing special deals such as zero interest on balance transfers or new purchases, cards that earn you a little bit of cashback every time you use your card or credit cards that allow their customers to collect points whenever they spend money with their card.
When researching credit cards with rewards, I found it important to make sure that the rewards offered suit your needs as an individual or family. Some credit cards offer rewards like air miles, while others are allowing customers more practical rewards such as household items, gadgets or experience days. Some companies offer a mix of everything, so it’s worth checking out what you get back and asking yourself, if this is what you want from your card, before committing and signing a contract.
One of the most important tips however is not to get carried away when shopping. Use your card sensibly and only when you need to. The main purpose of a credit card is not to collect rewards, no matter how tempting they may seem.
Disclosure: This is a featured post, but I hope it was informative for those of you looking into different kinds of credit cards.
Image Credit: Unique Hotels Group