Credit cards can be referred to as plastic money. They are issued by financial institutes (mostly banks) and offer money that has to be repaid within a limited period of time. Credit cards are a useful way for making payments and keeping a track on your purchases. All you have to do is swipe your card online or stores and you are done. You can also use credit cards to pay your monthly bills, insurance premiums etc. Read below to know the numerous advantages of using a credit card.
1. Signup Bonuses: Many credit cards offer significant rewards if you use it responsibly. For example, applicants with good credit can get approval for credit cards offering signup bonuses worth anywhere from $50 to $250. Other cards offer up a large number of points which can be redeemed later for getting rewards such as gift cards or holiday package.
2. Cash Back: Some credit cards offer you anywhere from 1-5% cash back on your purchases.
3. Investment Rewards: Some cards, such as the Fidelity Investment Rewards card, gives you a higher rate of cash back; while in return you have to deposit your cash back into an investment account directly.
4. Points: Several credit card rewards on a point system, which allows you to earn up to 5 points per dollar spent. After you reach a particular point threshold, you can redeem the points on your card to get gift cards at some stores. You can also opt to use the gift cards for gifts to make holiday and birthday shopping less expensive and simpler.
5. Safety: When you use a credit card, you can avoid losses from fraud. Even if your credit card is stolen and used fraudulently, you are not out any money. All you need to do is notify about the fraud to your credit card company. While the credit card company resolves the issue, you don’t have to pay for the transactions you did not make.
6. Insurance: Most of the credits cards issued today come with a number of consumer protections like rental car insurance, travel insurance and product warranties which might even exceed the warranty of the product manufacturer.
7. Universal Acceptance: Some purchases are difficult to make using a debit card. If you want to stay in a hotel room or rent a car, then you will have an easier time paying with a credit card. Also in some foreign countries, merchants sometimes refuse to accept a debit card as payment. So then your only rescuer will be a credit card.
Merchant Express Inc. is a highly acclaimed merchant account service provider. One of the most sought after organizations in the transaction processing industry, they offer credit card machine, credit card reader and credit card merchant account to different businesses.

Authors Bio:

Amanda Hughes is a renowned finance writer belonging from California, America. With a degree in finance studies, she now works as a financial adviser and writes columns on various newspapers.