5 indirect benefits of using credit cards


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: Winter 2019 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Winter 2019 – Expert’s Choice

Posted: December 17, 2018

Nights are still drawing out, the wind is cold, and the air smells like snow already – the winter is close. Christmas and holiday season are approaching swiftly, and overwhelming gift ideas are swirling chaotically in your mind. Ready or… Continue reading

Credit Card Tips For Holiday Shopping 2018

Credit Card Tips For Holiday Shopping 2018

Posted: December 15, 2018

November and December are the busiest months as gift shopping reaches its peak. People rush around looking for the best gifts and the best deals leaving a lot of money in the shops. Holiday season may force you to go over the household… Continue reading

Credit Cards to Save More on Holiday Shopping

Credit Cards to Save More on Holiday Shopping

Posted: November 25, 2018

Discounts and special offers are available all year round. Werther you are a bargain hunter or an impulse buyer, make sure you check online discounts and special offers. Also, if you are a cardholder, see if your credit card opens the door… 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!