5 indirect benefits of using credit cards

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Cardholder Benefits » 5 indirect benefits of using credit cards

5 indirect benefits of using credit cards

The content is accurate at the time of publication and is subject to change.

There are some people who use credit cards to make a lot of savings. This is because they gain from lot of indirect benefits, which most other credit card customers fail to recognize.

Fear of high interest rates

Fear of high interest rates on credit cards stops many card holders from going overboard with their expenses and sticking to their budget. If you have an outstanding due, you could end up paying a large amount of interest which is what needs to be avoided. This consciousness about paying interests will deter many credit card customers.

Lower interests on loans and mortgages

A credit card doesn't directly get you loans with lower interests or mortgages with smaller payments per month. However, using a credit card properly for a couple of years will certainly improve your credit history to an extent that you will be benefited from lower interests on loans which you are likely to need in the future.

Miscellaneous benefits of credit history like insurance premiums

Similar to loans, a good credit history can earn you lower premiums on your insurance. There are various other miscellaneous benefits too. For example, some landlords in posh neighborhoods especially loop for the credit rating of the individual before renting the apartment. Some employers too are known to refer to the credit history of the candidate before making a job offer. Using a credit card properly is a reasonable way of improving your credit history and reaping the benefits all over.

Expenditure auditing

Credit card expenditure reports, if you have the time can help you keep track of where your money has gone. If you spend cash, you might find it hard to trace where you have spent the money over the entire month. But if you keep charging all your expenses to the credit card, then your expenditure will have a good audit trail, which you can use to filter bad expenses from good ones. Wastage can be reduced using this mechanism as well.

Emergency coverage

Having a credit card is always a good thing to cover for you during emergencies. There are many times when we fall short of cash but need to buy something. Credit card in a way offers you an interest free loan for more than a month depending on when you made your purchase. You can also reap the benefits of online deals and transactions with the help of a credit card.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Top 5 Cards for Travel from Our Partners: Summer 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Summer 2018 – Expert’s Choice

Posted: February 12, 2018

The sun shines more and more each day, flowers are in bloom and you already feel how hot it is getting - summer is here. Summer holidays are almost here, and you are in need of dire preparation. You can lift in spirits and let CreditLand ... Continue reading
Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Posted: February 10, 2018

If you're trying to find the perfect rewards credit card, you might feel like you're drowning in options. There are just so many out there, and many of them look similar. This can make it tough to decide on a card. One thing people often ... Continue reading
Price Protection: Credit Cards That Will Refund a Price Drop

Price Protection: Credit Cards That Will Refund a Price Drop

Posted: February 8, 2018

Those who often find themselves buying stuff and then discovering that they could pay less for the same item they've just bought, will appreciate this credit card benefit – price protection. This is the least known and the most neglected ... Continue reading
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!