A credit card can be a very useful financial tool in everyday life, provided of course that you repay your credit balance every month without delay. For those who have the discipline to repay the balance each month, the credit card offers a number of benefits. Here are 5 reasons to have it:
1. improve your credit history and rating
Using a credit card will help improve your credit history and rating. Your credit score can affect a wide range of payments, and the better your score, the less you will have to pay. A high credit rating may mean, for example, that the interest rate on your mortgage, for example, will be several points lower than it would be in the case of a worse rating; this may mean thousands of zlotys of savings over the entire term of the loan.
2. Emergency money
A credit card provides immediate access to money in case of an emergency. Most of us usually only carry as much cash as we think we need that day and not in case of emergency. If you are away from home and in the middle of the night you need a hotel room, you don't have to worry if you have enough cash and if your salary has already been credited to your bank account. A credit card can provide an immediate solution to many unexpected expenses.
Many credit cards provide rewards for the very fact of using them. It can be anything from cash to points for which you can make any purchase, to free airline tickets. By using credit cards that offer rewards, you can actually earn money or get the opportunity to buy something you've always dreamt of, but wouldn't have spent your own salary on it.
4. interest-free money
Between the time you make a purchase with your credit card and the time your card is actually repaid, you have a period of time during which you do not actually pay for anything. If you repay your card on time, it is free to use it. More - even if your money is on an interest-bearing account, you actually earn money for which you have already bought something.
5. Convenience during the journey
Travelling, whether in Poland or abroad, is expensive. The right credit card provides a convenient way to pay for your travels, so you don't have to carry a lot of cash with you. An appropriate credit card can also provide for easy foreign exchange when travelling abroad at rates that are usually better than those of banks in the same country.