CREDIT CARDS ARE A MUST-HAVE FOR FINANCIAL WELL-BEING

The advantages of using a credit card are endless as long as you manage your credit spending and payments responsibly. There are numerous benefits associated with them, including rewards, protection, and convenience. Why should you use a credit card? There are other payment options that may seem to be easier to stick to a budget, such as debit cards and cash. There is a reputation that credit cards tend to encourage the holders of cards to spend money they don't have, especially when they receive enticing offers in the mail.  The importance of having a good credit card cannot be overstated. As long as credit cards are used responsibly, they can be a great asset for your financial well-being when used responsibly. It is true that smart credit card holders can earn money by simply utilizing their cards in the right way. In summary, what are the advantages of using a credit card, and how can you benefit from using one to your advantage? The following are ways that you can do so.
Build Credit History
Building up your credit history is probably the most important reason to obtain a credit card. For those planning to borrow money, credit scores, derived from records of their financial activity, are extremely important. Part of your credit score is derived from your credit card history. Debit card transactions are not reported to the bureaus that monitor credit scores, but credit card transactions are. The ability to pay your credit card balance on time has a significant impact on your credit score. Furthermore, the longer you use a credit card, the more your credit history will be built, therefore enhancing your credit score even further.
Bonuses For Sign-Ups May Be Offered
The majority of credit cards offer a welcome gift to new members when they sign up for the card. In order to get the bonus, you usually have to spend a certain amount of money (sometimes within a certain time frame) which is why you should read the fine print carefully. In spite of this, it remains a valuable perk for customers. The Chase Sapphire Preferred® Card currently has a promotion that offers 60,000 bonus points after you spend $4,000 within the first three months of opening your account, and the offer is valid until March 31. 
Cash Back is Available
As you make purchases with a cash-back credit card, a small amount of money is refunded to you when you make the purchase. It is possible to earn a cash reward of anywhere between 1% and 6% of your total purchase. Over time, these rewards can add up to a substantial bonus.
Reward Programs Are Available
A reward program is almost as numerous as a credit card. The key is to find a rewards program that is compatible with your current spending habits or that partner with a retailer you are already familiar with.
There are a variety of rewards programs available, including, but not limited to:
⦁    Points-based systems cards. Spending earns you points, which can be redeemed for gift cards or other rewards.
⦁    Cards for frequent flyers. The airline miles you earn when you fly can be redeemed for discounts on future flights. There is a possibility that these cards will offer lucrative sign-up bonuses.
⦁    Rewards cards for travel. Credit card miles are slightly different from frequent flyer miles, but they still provide travel rewards.
⦁    The rewards card for everyday spending. You can earn rewards when you spend money on common expenditures like dining at restaurants, gas, or groceries with these cards. For individuals who do not travel often, but still wish to maximize the benefit of their card, this type of card may be ideal.
Your Spending Tracked
You want to make sure that you budget your money better, don't you? As a built-in expense tracker, credit card statements make it easy to keep track of your expenses. You can track all your purchases online, storing all the information you need such as where, when, how much, and how often you are spending your money. It is not uncommon for credit card companies to keep your spending records for years. It is especially useful when tax time comes around because this benefit can save you quite a bit of money. When you have a single record of your spending for the past year, you will be able to save time and effort when filing your taxes. A credit card statement shows business expenses, rental property expenses, charity contributions, and more tricky tax return areas.
Fraud protection
The level of fraud protection offered by credit cards is one of their biggest advantages over debit cards. Using real-time monitoring, the Chase Freedom FlexSM safeguards your account against potential fraudulent activity. Imagine that your credit card has been stolen or that someone has obtained your card information online. It is unlikely that you will lose much money if the thief begins to make purchases on your card on the spot, since charges to credit cards aren't immediately withdrawn. The credit card company will place a hold on your card and investigate the theft as soon as you notify them of the loss. Any fraudulent purchases made during this time are not your responsibility. Credit cardholders are protected under federal law from losing much money. The maximum liability of $50 may be imposed on you. It's a no-lose situation if you report it before the purchase is made, or if your credit card company has a zero-liability fraud policy. Consider the case of a stolen debit card. Fraudulent purchases will result in the immediate deduction of funds from your debit card account. As a result, you may have to cancel the automatic payments you have scheduled. The transactions can be reversed and the money can be restored if you report the theft within 60 days of the incident. The process takes time and is much more disruptive than credit card theft.
Balances Can Be Transferred
Transferring balances from one credit card to another refers to the act of moving debt from one credit card to another. The balance transfer credit card can also be used for transferring other debts, like car loans and monthly installment payments on a loan. Despite this, you will still have to pay back what you owe, of course. It's true that if you switch your debt from one card to another, you will end up saving money over the course of time. There are also many benefits to balance transfers, including the consolidation of debt and ease of life.
Purchase Protection
There is no doubt that consumer protection is one of the major benefits of many credit cards. A credit card can be used to purchase an item and if you later find out that the item is damaged or the quality is poor, you can return the item and you can get your charge reversed. Depending on the credit card you use, you may also be able to get extended warranties on electronics, furniture, and other items that you plan to use for a long time. A warranty card often doubles the warranty period provided by the manufacturer. Keep all receipts!
Built-In Grace Periods
In essence, credit cards are a form of loan that you can take out for a period of 30 days or less at no interest. In contrast to debit cards, credit cards do not require you to have the funds for the purchase at the time of the transaction. As a result, there's a grace period that allows you to make arrangements for the payment of your debt. As long as you pay off the full balance of your credit card balance each month, you will benefit from this grace period if you use it carefully.
Insurance Fees
You should check out the consumer protections offered by your credit card in order to get the most out of it. There's a good chance you'll discover benefits you didn't know you had. Many credit cards offer a variety of benefits, including extended warranties, purchase protection, rental car insurance, and travel insurance, in addition to extended warranties and purchase protection.
Universally Accepted
Travel is one of the most exciting experiences of your life, and your credit card can be the best friend you could have. The booking of rentals and housing is much easier when you use a credit card rather than a debit card. The majority of rental services place a hold on your card for a few hundred dollars for the duration of the rental. There can be some inconvenience associated with this hold when using a debit card. It should also be noted that credit cards are accepted more readily worldwide than debit cards. When traveling to a foreign country, be sure to use your credit card to take advantage of the lower exchange rate rather than paying high exchange rate fees for cash at the airport if you're using your credit card.
Less Fees
It is important to note that credit cards do not have overdraft charges or individual transaction fees that debit cards do. Even though credit cards may have annual fees, the rewards and cash back you receive might be enough to offset these fees in the long run. Due to the fact that Chase Freedom FlexSM does not charge an annual fee, it is the clear winner in this category.
Conclusion
There is no reason why you shouldn't use a credit card responsibly and there really isn't any reason not to. As well as providing rewards, protection, and convenience, a credit card also reports regularly to the credit bureaus, which makes it easier for you to build your credit and make it easier for you to manage your credit. The use of intelligent credit cards is one of the simplest and most effective methods of saving money and keeping your money safe, with a few perks thrown in as well. Considering that it is only one spending method, that is not a bad rate of return at all!

By Rashmi Goel